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10/23/07 - Rethinking the Net Promoter Score - III
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. We've already reviewed the first and second of four findings. Today, we will continue with the third finding.
Foresee's research suggests that NPS vastly overstates detractors. In their study, they found the NPS would have categorized 27% of all respondents as "detractors" or "bad profit." When they asked more questions, they found that only 1% of all respondents are actually likely to communicate a bad experience.
The "one question" is asked in a way that seems to pinpoint the likelihood of a positive reference. It does not specifically ask about the likelihood of a negative reference. Is it accurate to call a low numerical response a detractor if we don't know the likelihood of sharing negative feelings? The customer may not be loyal. They might not do repeat business. But we really don't know how likely they are to be a negative reference. Return tomorrow for the fourth and last finding. Reader comments continue to pour in and we will be covering them later in the week.
Gary Lemke, Publisher
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TODAY'S NEWS (more)
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WebEx, now part of Cisco, and Oracle announced that they will offer Oracle's Siebel CRM On Demand Service through the WebEx Connect application ecosystem. CRM On Demand by Oracle delivered by WebEx combines Cisco WebEx's on-demand collaboration expertise with Oracle's enterprise-class Siebel CRM On Demand Service, to create CRM designed to accelerate sales cycles.
Citrix Systems announced it has completed the acquisition of XenSource, Inc., a privately held leader in enterprise-grade virtual infrastructure solutions. The purchase price for the transaction was approximately $500 million payable in a combination of cash and Citrix common stock.
Esker announced the launch of the new version of FlyDoc, the company's on demand service that enables organizations to send invoices and other business documents via fax, postal mail, email and SMS directly from user desktops and enterprise applications. The new solution integrates online archiving, adds a more user friendly interface.
Business Objects announced it has partnered with leaders in the application delivery space - including Citrix Systems, rPath, and RightScale - to deliver a Crystal Reports Server XI virtual appliance. The new offering is a pre-installed and pre-configured solution that will help reduce deployment time from days to minutes.
OpenMarket announced the launch of OpenMarket Version 2.0. This new release of OpenMarket's messaging and financial processing platform is designed to simplify transactions between mobile content providers and individual consumers.
Infinity Property and Casualty Corporation has selected predictive analytics software to improve claim cycle time and enhance customer service. PredictiveClaims software from SPSS will provide the organization a claims scoring solution to determine whether claims are legitimate and qualify for immediate approval or are potentially fraudulent and should be further investigated - ultimately improving productivity and accuracy of the entire claims-handling process.
Epicor announced planned enhancements to its Epicor for Service Enterprises solution that will enable Epicor to address a broader market space. The new version of Epicor for Service Enterprises, which is scheduled for release during the fourth calendar quarter of 2007, includes an enhanced accounting interface tuned to support throughput from the increasing number of multi-thousand user global service organizations turning to Epicor for Service Enterprises.
Intervoice announced that it has received an order for a Voice SMS application from a large East African wireless service provider in partnership with a European network equipment provider.
Nortel announced the implementation of an integrated communication system that enables the radiology department at Baylor University Medical Center at Dallas to securely send medical orders directly to radiology technicians wirelessly.
Art Technology Group reported financial results for the third quarter ended September 30, 2007. Revenue for the third quarter of 2007 grew to $35.9 million, a 65 percent increase over third quarter 2006 revenue of $21.8 million. Net loss in accordance with GAAP for the third quarter of 2007 was $760 thousand, or $(0.01) per share.
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"8 CRM Essentials"
Dan Chiazza, Director, Global Sales Operations, Harris Interactive
For the most successful companies, CRM is an area of continual innovation and assessment. And your CRM processes and technologies must keep pace with-or ideally stay ahead of-changes in your market and customer base. Whether you are searching for the right CRM technology for your business, re-evaluating your current use of CRM, or looking to derive more value from an existing investment, understanding the essential factors of CRM success can help you get the best results. This webinar highlights eight proven essentials distilled by over 30,000 global companies of all sizes and industry experts.
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| CRMAdvocate Stock Index |
| CRMSI | 64.20 |  | 1.69% |
| Dow Jones | 13,566.97 | | 0.33% |
| Nasdaq | 2,753.93 | | 1.04% |
| S&P 500 | 1,506.33 | | 0.38% |
| Top Gainers |
| SAP | 53.63 | | 57.90 |
| HP | 51.29 | | 49.78 |
| NCR | 25.75 | | 47.99 |
| Top Losers |
| eOn | 0.92 | | 0.78 |
| Selectica | 1.87 | | 1.75 |
| Broadvision | 2.47 | | 2.20 |
| Complete Stock Index |
| As of close 10/22/07 | |
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Microsoft Aims To Unify Communications - Microsoft's new communications products are intended to streamline the communications flows that threaten to engulf the average employee and enterprise. Communications Server 2007, for instance, delivers VoIP, IM, and "presence" to Office applications, as well as to upcoming versions of Microsoft's Dynamics ERP and CRM releases.(CRMDaily)
|  | | Mobile CRM: Why Less Is More - CIOs struggle when they try to mobilize enterprise applications. (CIO)
| | | How Long Does it Take to Engage your Customers? - Sales teams have got under ten seconds to get it right, according to new analysis from Qire, the Intelligent Voice Messaging (IVM) company, which has revealed that customers will allow just nine seconds for you to grab their attention before hanging up.(CRM2day)
| | | Microsoft taking partner hosting international - Microsoft is expanding the number of partners hosting its CRM application beyond the U.S. and Canada.(SearchCRM)
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"OUR TAKE"
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