You’re deep in the process of implementing Net Promoter and then someone asks the question you’ve been dreading:
“How much can we expect to improve NPS in the next 6 months?”
All eyes in the room turn to you. What do you say?
The answer is complex and the exact number depends on several factors but below are examples from three different companies.
Real Company Data
Orange France
Check out their whole presentation for the full story, but Orange France reported that they were able to improve the NPS by 6 points in 8 months from a starting point of o.
Voxeo (a telephone system provider)
In this presentation by Amy Downs of Voxeo, they indicate that they have improved their NPS by about 17 points to 62% in 12 months.
Virgin Media
This case study about Virgin Media indicates that:
“Since last year, the operational NPS has improved by 18 points”
How to you get results like this?
To achieve results like this you need to have several key features in your Net Promoter process
A robust data collection system
Your data collection system needs to do more than just collect the Net Promoter Score. It also needs to collect, and give you the ability to analyse, the root cause drivers of customer loyalty. Without this additional information you will know your score but not how to improve it.
My preference is, when possible, to use a Transactional survey approach. Transactional surveys provide a continuous feed of data to the organisation. Collecting data continuously means that you can track changes in the score over time. This approach also is a great way to drive customer focus within the organisation
Taking action
Collecting customer feedback is not much value unless you do something with it. The feedback is not the end it is the start of the process.
When setting up any customer feedback data collection system, NPS included, you must set up a parallel action process within the organisation.
- Who will review the information?
- How often?
- What will they do with it?
- How will you get the broader organisation engaged.
- Who will action the changes?
- How will they action them?
All of this means that you will need some type of Net Promoter Governance structure so that your organisation has a way use understand and action the information you receive from customers.
It is my experience that companies that do not have an organisational process in place to use the information, undertake a few haphazard projects but long term the endeavour falters.
More Information
For more information on Net Promoter Score and how/why it works download our free Introduction to Net Promoter Score (NPS).
If you are thinking about implementing a best practice Net Promoter system in your organisation give us a call. We can help you to implement right program for your organisation for the long term.
…….and socializing the measurement philosophy, what is the actual, sustainable business outcome? Increasingly, marketers are asking this critical question. The following are offered for consideration:
http://www.customerthink.com/blog/sorry_nps_i_m_not_buying_it
http://www.customerthink.com/article/customer_advocacy_behavior_personal_brand_connection
http://www.customerthink.com/blog/unmasking_the_problem_with_net_scores_and_the_nps_claims
Michael,
Marketers should always be asking what are the sustainable business outcomes of any investment. In fact the whole business should be; from the CEO down.
My experience is that NPS is well and truly linked to business outcomes.
The following are offered in support of that statement:
http://genroe1to1.genroe.com/2011/05/12/net-promoter-score-success-stories-and-case-studies/
http://genroe1to1.genroe.com/2011/10/05/net-promoter-score-is-2-7-times-more-sensitive-than-customer-satisfaction/
http://genroe1to1.genroe.com/2010/08/15/new-insights-net-promoter-score-vs-customer-satisfaction/