1
IF NPS DRIVES GROWTH
WHAT DRIVES
NET PROMOTER SCORE ?*
* Findings of an empirical study with sample size 14,600 respondents
2
NPS : The New Performance Metric
NPS works*……………
* At least in some cases
NPS works*……………
* At least in some cases
What Drives NPS ?
What Drives NPS ? ( Top Down Approach)
In his book “The Ultimate Question”, Fred
Reichheld answers this question with the
following three strategies
Create a complete customer experience capable
of delighting each targeted segment
Bust the silos and deliver the proposition
“end to end”
Renew and reinvent customer experience
every time.
Our Hypothesis……
NPS improvement by improving Service
Quality at critical touch points (Bottom up
Improvement
Approach)
Delighted
Delighted
Satisfied
Satisfied
Service
Dissatisfied
Improveme
nt Dissatisfied
System employed for Satisfaction Measurement
The MOSTER System
Typical
MOSTER
Overall Customer Status
System
Output
Distance
Delighted
from
Dissatisfacti
on
Threshold
Satisfied
Dissatisfied
How Does MOSTER Classification relates to NPS
For all the studies,
besides estimating the NPS value for each brand,
we also estimate a new construct called Customer
Classification Index ( CCI )
CCI=(% Delighted + % Satisfied)–(% Dissatisfied)
And the results are………….
Customer Composition Drives NPS
NPS Vs CCI
100.0
80.0
60.0
40.0
20.0
0.0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
-20.0
-40.0
-60.0
-80.0
CCI NPS
R 2 =0.63 Source : 16 projects, Total sample size
14,600
Delighted Customers become Promoters
DELIGHTED CUSTOMERS Vs PROMOTERS
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
% Delighted % Promoters
R2 Source : 16 projects, Total sample size
=0.60 14,600
So Improved CCI, results in
higher NPS
How to Improve CCI
By acting on the margin……………..
Delighted
Distance
from
Dissatisfacti
on Marginally Delighted
Threshold
Marginally below
delight
(Upper threshold of
delight)
Dissatisfied Satisfied
Marginally Dissatisfied
(Lower threshold of satisfaction)
How MOSTER System improves CCI
We estimate Improvement Potential for each
Attribute
A small change
Attribute: Availability of all models & colors of ratings on this
attribute will
Threshold values
Figures are in result in 18%
percentage of total Delighted moving from
respondents dissatisfied to
9 satisfied AND
12% from
satisfied to
delighted=
30%Likely
Impact Of
Marginal
18 12 Improvement
31
Dissatisfied Satisfied
30
Improvement Potential = 18 % + 12 % = 30 %
How MOSTER System improves CCI
Threshold values
Figures are in
percentage of total Delighte Present CCI =
respondents d 9
{9% + (31 % + 12 %)} – (48 %)
=4%
18 12
31
Dissatisfied Satisfied
30
Threshold values
Delighted New CCI =
9
{ (12 % + 9%) + (31 % + 18 %)} –
12
(30 %)
= 40 %
18 31
Dissatisfied Satisfied
30
16
What does The MOSTER System offer
Thus through a systematic action plan to
continuously increase the proportion of
delighted customers and reduce
proportion of dissatisfied customers, NPS
value can be improved
17
Thank you
Metric Consultancy (UK)
Ltd.
[Link]