Ignoring the “Net” in NPS

This is an outstanding post from Pete Abilia’s Shumla.com blog. It’s a great take on this very important, and in many cases, controversial subject.
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Ignore the “Net” in NPS: Manage Promoters and Detractors Independently


Mobilizing an entire organization to a single number, such is the benefit of the Net Promoter Score. But, doing so can be misleading and can lead to behaviors overly-focused on the score and, moreover and ironically, completely miss the spirit of NPS: Improving the Customer Experience. Yes, improving the Customer Experience and improving the NPS score are not always synonymous. And, when we think they’re one and the same, we can say Goodbye Customer.

To the detriment of most companies and organization, too many are focused on the NPS score. As a consequence, they often miss the mark. The “Net” in NPS is too far from the bone, as it were, and so it makes sense that the mark is often missed by organizations.

What is needed is an understanding of the component and atomic parts of NPS. That takes us closer to the bone and the heart of the Customer Experience.

Net Promoter Score

For review, NPS is calculated by taking the % of Promoters Less the % of Detractors (img src: Satmetrix).

nps score calculation

As you can see, the value of NPS is that it is statistically very difficult to obtain promoters – there’s only a 2/11 chance of obtaining a promoter. With 7/11 of the weight slanted toward detractors, it forces the enterprise to listen and focus it’s efforts on reducing the root causes of detractors.

http://www.shmula.com/ignore-net-nps-manage-promoters-detractors-independently/11090/

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