Making Net Promoter Score More Actionable

Vic Hunter
Vic Hunter
Vic is founder and president of Hunter Business Group LLC. He is nationally know
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Jun 05 Voice of Customer 0 Comment
I have been impressed with how actionable NPS has actually been in the industry since its birth in the 90’s.  By “Actionable” here, I mean getting businesses into gathering Voice of Customer beyond Satisfaction Surveys of the 70’s and 80’s.  What we discovered in the 90’s (with the Service Profit Chain research at Harvard) was that Customer Satisfaction pointed us effectively to “Pain Points” and was required for growth in Loyalty, but it did not effectively score our relationship with our customers or inform us of what drove loyalty.



The NPS provides a very easy and somewhat defendable measure of the customer relationship.  It is more easily defended in consumer than B2B applications, but its real value is in its simplicity and movement to a behavioral measure.

Built on the Service Profit Chain and the NPS foundation is Customer Loyalty as a measure of the economic value of the relationship.  The advancements of Loyalty measures over NPS by themselves, is that Loyalty Measures:

  1. Link the measure of the Customer Relationship to a predictive economic model.  By doing this the investments in the Customer Experience are not a cost of doing businesses, but an investment in the asset value of the customer as a future revenue stream.

  2. Are supported and improved through a limited set of Drivers (usually four or less) and Attributes or Activities that the customer defines as critical to improved value of each Driver.

  3. Include behavioral questions that are more predictive in the B2B Community than “will you recommend”.

Moving to a Loyalty Measure identifies for any market or customer segment specific drivers and actions attached to each driver.  Taking these findings back to the customers in a meeting that validates the findings, and aligns those findings with customer priorities for the coming year, creates the foundation of a new strategic engagement and economic charter/ account plan.  

The Key Learning:
  1. The Customer Experience is an investment in the Customer as an Asset and must have quantifiable economic value attached to the measure.
 
  2. Loyalty Drivers and Attributes inform the sales process on more valuable relationship focused activities.
 
  3. Knowing what drives loyalty allows engagement with the customer at a more strategic level -- meaning at a level where investments are made in human and capital resources against a measurable economic return.

If you are interested in Making Net Promoter Score More Actionable, click This e-mail address is being protected from spambots. You need JavaScript enabled to view it and we will contact you to discuss.

About the author

Vic Hunter

Vic is founder and president of Hunter Business Group LLC. He is nationally known for his expertise in business-to-business direct marketing and service to the nation's leading companies.

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