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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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10/22/07 - Rethinking the Net Promoter Score - II
The Net Promoter Score (NPS) is the idea that companies don't need to do in-depth customer surveys anymore. Instead, companies only need to ask one question: "would you recommend us?" ForeSee Results, an online customer satisfaction firm that uses the methodology of the American Customer Satisfaction Index (ACSI) from the University of Michigan, studied NPS to see if it could replace more comprehensive metrics. Last week, we shared the first of four findings. Today, we will continue with the second finding.
NPS methodology summarizes responses to the one question into three categories based on their numerical response from 0 to 10: An answer of a 9 or 10 categorizes one as a Promoter. Passives answer a 7 or an 8 and Detractors answer a 6 or less. Foresee concludes the "The scale is misleading and oversimplified. For example, we found that people who answered the Net Promoter question with a "6" were 10 times more likely to buy offline than people who rated themselves a '1", yet they are all lumped together as detractors.
Without the benefit of the research details, I lack the ability to make an academic statement. But my gut tells me that two people providing the same numerical answer to one question may indeed represent widely disparate loyalties. While it is nice to think we can put customers into nice little segments, at some point we have to remember their respective individualities make coarse characterizations just that - coarse characterizations. Read tomorrow's edition for the third finding of four.
Gary Lemke, Publisher
(Share your thoughts)
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