Future of Net Promoter Score

Only available on StudyMode
  • Download(s) : 40
  • Published : April 6, 2013
Open Document
Text Preview
Net Promoter Score has served the industry very well as the standard in satisfaction intention, and can now be enhanced by adding explicit customer satisfaction data, influence and customer reviews already on the web. NPS, a Industry Standard Before the Social Web

There’s no better way to measure customer satisfaction and intention to refer than the Net Promoter Score.  In fact, this simple mechanism asks consumers  on a 0 to 10 rating scale: “How likely is it that you would recommend our company to a friend or colleague?” Based on their responses, customers can be categorized into one of three groups: Promoters (9-10 rating), Passives (7-8 rating), and Detractors (0-6 rating) NPS ,while effective at capturing the intention of advocacy, does not measure actual advocacy or detractions that occur in the social web.  As a result it’s difficult to capture the entire ‘net’ experience as the social web has demonstrated. Now The Social Web Provides New Data Sources

The social web actually records customers making explicit ratings, rankings, recommendations or warnings about products in services, I’ve given some pragmatic reasons on why this is important.  You can find these reviews in Amazon, Twitter, Plancast, Yelp, Facebook, Twitter, and beyond.  In particular, the social web allows brands to actually measure  three new types of public data sources: 1. Customer Satisfaction: Customers can now provide ratings, reviews, and other critiques in online review sites. 2. Influence:  Not all customers are created equal, in fact some customers have have great breadth of reach (like Celebrities on Twitter) or have depth in knowledge (expert blogger in your market). 3. Referral Activity: No need to ask “how likely” they are to refer, you can see them do it live. Get Accurate, Measure the Total Social Customer Value (TSCV) Companies must value both the total customer satisfaction as well as influence and advocacy behaviors in order to provide a holistic example of the modern customer. Matrix:  Know Your Total Social Customer Value with 6 Factorials Attribute| Why it’s important| Data Location| How you should measure| What no one tells you| Net Promoter Score| This is the mainstay of customer satisfaction measurement and shouldn’t go away. It’s easily understood, well documented, and is a useful metric to overall ‘referral intention’. (Intention doesn’t measure actual behavior, just the likelehood you would)| Support exit surveys, primary research surveys, work with Satmetrics, the owners of this methodology| 1-10 Referral score: Promoters (9-10 rating), Passives (7-8 rating), and Detractors (0-6 rating)| This is the standard default measurement, yet needs additional factorials to represent the modern customer.| Influence (Absolute)| To determine if a customer is influential to others, such as celebrities, top bloggers, analysts and media. This doesn’t necessarily mean however they are trusted by your specific market.| There are a variety of secondary sources such as brand monitoring firms, like Buzzlogic, Radian6, as well as reputation management systems like Rapleaf. Your PR firm will have this list of absolute influencers, and their Twitter/blog/RSS numbers are good indicators| Total possible reach, frequency of publication.| These large influencers can cause mainstream media to shift attention, and will impact SEO, but don’t expect your actual consumers to trust them as much as they trust their peers. Assume high scoring at this level is towards the wider part of the funnel and may influence the lower elements.| Influence (Relative)| These are individuals that are ‘experts’ in your particular market. While they may not have mainstream appeal, they may influence consumers directly. For example, bloggers that write a dedicated blog to your market, or super reviewers that provide detailed reviews about your products in online sites| Online communities, Technorati data, and brand monitoring firms| Unlike...
tracking img