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Hi All,

I recall one cast where M&M recommended the concept of Net Promoter Score when doing customer satisfaction surveys (I think it was annual goal setting).

www.netpromoter.com has some details, "The Ultimate Question", Reicheld is the book.

It looks a very interesting concept and we're thinking of taking the next steps to trying it out.

If anyone has used it, it would be really great if you could share your experience.

Thanks!
Dan

MsSunshine's picture

Bottom Line: These simple questions have driven a number of more in depth activities over the last few years for us.

It is really a very simple concept. We've used it for both customer facing surveys and changed it slightly for an employee satisfaction survey. Every call to customer support gives you the option of answering it. Every sales call gives you the option as well. Then quarterly it is sent out to a specific group in the company that I belong to that has some real moral problems. For us, it really just did give a measure that something was wrong and track it improving. Then you have to drill in to figure out what it is and monitor how your initiatives helped. But it did help us focus.

Is there something specific you want to know about? I didn't run it but was involved in some of the follow ons. We ask 3 questions around how likely you are to promote the company and it's products. (We're a software development company.)

ChrisG*son's picture

I’m involved with a Fortune 500 firm that has made NPS the core of their approach to customer loyalty.

BLUF: Whether or not NPS drives or predicts changes to the bottom line at this firm (or any other—NPS was introduced in ’03) is not clear. What is clear is that it has served as a rallying point for the entire organization, from the CEO on down. It is not the only measure used at this firm—it’s supplemented by a full array of marketing research techniques—but it is the one marketing metric disseminated broadly.

There are a lot of legitimate critiques of NPS ([url]http://marketingroi.wordpress.com/2007/01/11/stop-measuring-your-net-pro...) and, perhaps more damaging, another academic study of the concept failed to determine a connection between NPS and companies’ growth ([url]http://customerexperiencematrix.blogspot.com/2007/07/more-attacks-on-net...). Reicheld doesn’t help his case by overselling the concept in his book—it’s definitely not “the only number you need to know.”

However, as a barometer of a company’s success with existing customers—its service quality, brand strength, and customer communications–NPS seems to have real value. More importantly, tracking & reporting one (non-financial) number sends a clear and powerful message throughout the organization. If it’s not the best metric or “the one number you need to know,” it is at least an effective way of communicating the importance of customer-advocacy and a motivating focus for service and marketing.

I’m certainly not an expert, but this is what I’ve seen.[/url]

CJ's picture

We use the NPS a little where I work. It's a great measure for its simplicity.

Where we find it fails for us is that it doesn't tell what specifically you're doing right/wrong. You will find that you need to use other measures to give you that level of feedback.

[url=http://www.mbs.edu/go/mile-high/will-your-customers-save-you-or-betray-y... might also give you some more overview of NPS.

Cheers,
CJ

debeastman's picture

For those interested in learning more about companies using Net Promoter, the London conference is going on now and live blogging offers you the ability to learn from the presenters. Several companies presented today such as LEGO, Orange, Allianz, HSBC and others. Here's the link to the conference blog http://netpromoter.typepad.com/conference_europe_2008/

The themes of the presenters are clear, Net Promoter is about driving culture change in your oganization top down and bottom up. It focuses the entire organization on creating more promoters and decreasing detractors. So many companies are finding this to reduce churn and increase sales through cross sell and referral. Growth is the outcome of the organizational focus NPS offers, it's just plain logical.
Deb Eastman
CMO, Satmetrix