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Robert Scoble
I'm at Accel Partners with #travelinggeeks in London and just heard a company talk about its Net Promoter Score. Why this is important:
Net Promoter Score is how the world's best companies now keep track of how happy their customers are. - Robert Scoble
I've heard it discussed a lot lately from a wide variety of companies (it's easy to get, only need to ask your customers one question), and at Rackspace it's almost a religion. - Robert Scoble
Wonga is the company and said its NPS is better than Google, which means it's very high. - Robert Scoble
We use it widely for all our online brands at Reed Business Information - Jim Muttram
Those companies with a high NPS will grow quickly without spending money on advertising. Spotify, for instance, has a high NPS and is getting 50,000 downloads a day here in Europe without spending money on advertising. - Robert Scoble
NPS is about more than just one question, if it's used right. It's about providing value to your customers, listening to them and acting upon what they say. Read Reichhelds book, the ultimate question. - Wouter Trumpie
Wouter: true, but many of us hate answering surveys so if you can keep them short you are more likely to get surveys answered, which is why I talked about that aspect of it. - Robert Scoble
definitely agree, should keep the surveys short and use the ultimate question, but you also need to interpret and act on the answers to the one NPS question. Why do or don't you recommend our product or company etc. Some companies just seem to measure NPS, because everybody is doing it, and do not do anything with the feedback they get, which is wrong. - Wouter Trumpie
essentially it is about how many people are talking about you and form the tribe for you.. hence this reduces the advertising spend for the company.. NPS = Evangelists i am guessing.. - aditi
For balance, here is a link to research regarding NPS called, "A Longitudinal Examination of Net Promoter and Firm Revenue Growth" - In summary, Using industries Reichheld cites as exemplars of Net Promoter, the research fails to replicate his assertions regarding the “clear superiority” of Net Promoter compared with other measures in those industries. - http://contextrules.typepad.com/transfo... - David Gerbino
quite agree that NPS alone is not enough. Actionable feedback and trending is still needed. NPS as part of consumer feedback brings some order to often widely variable responses. - Andrew Cresswell
NPS done right can be very powerful. Very few companies only ask one question -- not even Rackspace. They use the NPS approach, in which you not only ask about likelihood to recommend, but also about WHY. They pass the individual customer feedback directly to the team members who can do something about it. It's the ultimate in actionability. By the way, that article David G references is bunk. Don't just read the text, but pore over the data. For a look at the data, see: http://is.gd/1mmo7 - Rob Markey
Are company utilizes this NPS. Ultimate Question! - Mark Williamson from BuddyFeed
Rob Markey, can you find a credible source of an opposing view of NPS? I always try find an opposing or different view on topics such as these. There are so many NPS evangelists out there and for someone to make a decision to use NPS, or anything new, based on just one side of a concept is not always the wisest move. Did I drop the Customer Satisfaction studies I project managed in favor of NPS? Hell no. Did I have the research firm I work with add a NPS section? Hell yes. Please note that I am not a Net Promoter Score evangelist I am a fan of research techniques that work. - David Gerbino
David, The most credible arguments against NPS generally come from the market research/statistician angle. It is absolutely true that the math of NPS (a single question-derived number collapsing an 11-point scale into 3) makes it less precise than more sophisticated (complicated?) indices. In our experience, you lose roughly 5-10% of the predictive discrimination when you drop to a single-question metric like NPS versus the 7-12 questions used by several other proprietary systems. Because it passes customer comments directly to the organization as verbatims, you also lose the easy quantification of multiple choice drivers analysis. Many find the text mining required of an NPS approach forbidding. I think you'll find that companies using the approach, however, value the granularity of feedback passed through to front line employees, as well as the change-management power of sorting customers into Promoters, Passives and Detractors. Much easier to conceptualize and act on than most other approaches. Bottom line: If you're looking for sophisticated, statistically ideal market research, don't use NPS. If you want operational learning and improvement, then it's a darned good, practical option. - Rob Markey
Rob, good comment with some great quant numbers in support of your points. I tend to side with the "market research/statistician angle" group, however, when working directly with the frontline, the NPS types of approaches are much easier to conceptualize. When managing for change, sometimes the best method is not the most statistically accurate. - David Gerbino
egad .... NPS has been debated amongst marketers for years. It is useful if used with care. The primary benefit is the simplicity. The primary negative is that it can drive unintended consequences when companies try to shift the score. - Bankwatch