The One Number You Need to Explain: Net Promoter Score

By asking a simple single question, you will predict the potential growth of your organization. It was the promise of a consultant named Fred Reichheld, and the whole business world started to questioning old solid traditions such, the annual customer satisfaction study, the market research ‘old’ world and the need to build scorecards combining different KPIs to control the sanity of the business organizations and monitoring the value creation. It was 2003, I did my first NPS project in 2006. Fred promised, “This number (the NPS) is the one number you need to grow!”. After 11 years and several projects under my belt, can I honestly say Fred has kept his promise? Continue reading “The One Number You Need to Explain: Net Promoter Score”

Customer Feedback management is not Market Research …and NPS not the Holy Grail

You’ve probably read hundreds of posts, articles, and books about market research. Over the past several years, another form of asking opinion to customers has also eased into the discussion: Customer Feedback Management (CFM) mainly associated to a specific key performance indicator (KPI): the Net Promoter Score (NPS). Continue reading “Customer Feedback management is not Market Research …and NPS not the Holy Grail”

Why can you not explain Net Promoter Score movements over time?

Once again several clients asked me about the reason Net Promoter Score shows high volatility in a trend. The main issue is how to show improvements (or decreases) of NPS and how to assess if the change is statistically significant. (remember, in statistic significant doesn’t mean the finding is important or that it has any decision-making utility, it simply means that you are very sure that the statistic is reliable: not due to chance)

Continue reading “Why can you not explain Net Promoter Score movements over time?”