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 "Our Take"
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"Our Take"
"Our Take" is a collection of daily
vignettes covering a wide range of CRM topics. It's an attempt to add our own spin to the world of CRM. We will use the column to share our perspectives, opinions,
epiphanies, web nuggets, or quite frankly anything that moves us. Get ready to expect the unexpected. And, don't be shy about sharing your thoughts.
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10/19/07 - Rethinking the Net Promoter Score
If you are not familiar with the Net Promoter Score, the idea was advanced in a Harvard Business Review article and in the 2006 book by Fred Reichheld, the Ultimate Question. The book says that companies don't need to do in-depth customer surveys anymore; instead, companies only need to ask one question: "would you recommend us?" Some people love it, some hate it.
ForeSee Results, an online customer satisfaction firm that uses the methodology of the American Customer Satisfaction Index (ACSI) from the University of Michigan, does a bi-annual customer satisfaction survey of the top 100 online retailers. They decided to use this survey (20,000 plus respondents and years of consistent methodology and questions) as an opportunity to investigate Net Promoter and see if it could replace more comprehensive metrics. Over the next few days I'll share four conclusions they have made.
The first conclusion is the NPS has a margin of error so high it cannot be taken seriously. Their research indicated NPS scores had a +/- 10 point margin of error, which means if your NPS is 24, it could actually be anywhere from 14-34. In comparison, they found the margin of error for their customer satisfaction studies to be +/- 2.6%. Next week, I will share the next three conclusions. Until then, write me to tell me if you have used the NPS and how it has worked for you.
Gary Lemke, Publisher
(Share your thoughts)
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