Comments on: Net Promoter News: SAP at 60, SkiButlers serve up 89, 50 for Oz iiNet, SA beats Germany in World Cup http://customergauge.com/2009/08/net-promoter-news-sap-at-60-skibutlers-serve-up-89-50-for-oz-iinet-sa-beats-germany-in-world-cup/ Measure, Understand and Respond with CustomerGauge Tue, 31 Jan 2012 15:38:58 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Karl Sharicz http://customergauge.com/2009/08/net-promoter-news-sap-at-60-skibutlers-serve-up-89-50-for-oz-iinet-sa-beats-germany-in-world-cup/comment-page-1/#comment-298 Karl Sharicz Tue, 25 Aug 2009 21:20:56 +0000 http://customergauge.com/?p=1104#comment-298 NPS or any variation of it really needs to be spelled out exactly how it was obtained and what specifically it refers to for any comparisons to make sense. From what I have seen and read, very few organizations reveal their NPS score unless it is awe inspiring to begin with and of those that do, no one seems to offer any details as to how it was obtained or more importantly calculated At my organization we have over 350 NPS scores in real-time on any given day sliced by any number of variables. So, what does it all mean? To the outside world, our NPS could mean nothing more than a hill of beans. To be quite honest, in many respects I could care less as to what some other organization's NPS score is. It's a number and that's about all you can really say about it in isolation. We use it to gauge our service performance and track that performance over time and identify areas for attention and improvement within the organization. The NPS of one particular office location or one particular product line or one particular vertical market viewed over time provides us with reason to dig deeper for root cause and subsequent action planning. My revealing an NPS metric will tell you very little about my organization or how you might experience doing business with us from a customer perspective. The best advice I can give for NPS is to keep it internal and don’t try to compare it outside of your organization where it has very little relevance if any. NPS or any variation of it really needs to be spelled out exactly how it was obtained and what specifically it refers to for any comparisons to make sense. From what I have seen and read, very few organizations reveal their NPS score unless it is awe inspiring to begin with and of those that do, no one seems to offer any details as to how it was obtained or more importantly calculated At my organization we have over 350 NPS scores in real-time on any given day sliced by any number of variables. So, what does it all mean? To the outside world, our NPS could mean nothing more than a hill of beans. To be quite honest, in many respects I could care less as to what some other organization’s NPS score is. It’s a number and that’s about all you can really say about it in isolation. We use it to gauge our service performance and track that performance over time and identify areas for attention and improvement within the organization. The NPS of one particular office location or one particular product line or one particular vertical market viewed over time provides us with reason to dig deeper for root cause and subsequent action planning. My revealing an NPS metric will tell you very little about my organization or how you might experience doing business with us from a customer perspective. The best advice I can give for NPS is to keep it internal and don’t try to compare it outside of your organization where it has very little relevance if any.

]]> By: Rob Markey http://customergauge.com/2009/08/net-promoter-news-sap-at-60-skibutlers-serve-up-89-50-for-oz-iinet-sa-beats-germany-in-world-cup/comment-page-1/#comment-297 Rob Markey Thu, 20 Aug 2009 14:07:00 +0000 http://customergauge.com/?p=1104#comment-297 Adam: This blog is excellent. I find myself wondering whether these self-reported Net Promoter Scores are really meaningful and wonder whether we should be encouraging the companies to be a little more open about reporting how they arrived at them. For example, is a 60% NPS at SAP good, great or terrible? While they claim it's really good versus the competition, how do we know? Did they survey customers broadly in the market using a double-blind research methodology and controlling the sample to be certain they had a good mix of decision-makers in key roles at these companies with adequate sample for all the competitors? Or did this 60% come from a survey of their own customers? Was the sample collected randomly? Or was it customers who had recently renewed a contract or had a service experience? Did it include attritors? We don't know. I am thrilled that more and more companies are using the Net Promoter approach to creating closed loop feedback to help drive culture change. But I am also concerned that many companies just calculate a score and hope that means something. A little rigor in both measurement and in continuous improvement processes would be good for the community of Net Promoter adherents. Otherwise, Bridgeway may not be the only company on this post that merits the moniker of "self-puffer." Rob Adam:

This blog is excellent.

I find myself wondering whether these self-reported Net Promoter Scores are really meaningful and wonder whether we should be encouraging the companies to be a little more open about reporting how they arrived at them.

For example, is a 60% NPS at SAP good, great or terrible? While they claim it’s really good versus the competition, how do we know? Did they survey customers broadly in the market using a double-blind research methodology and controlling the sample to be certain they had a good mix of decision-makers in key roles at these companies with adequate sample for all the competitors? Or did this 60% come from a survey of their own customers? Was the sample collected randomly? Or was it customers who had recently renewed a contract or had a service experience? Did it include attritors? We don’t know.

I am thrilled that more and more companies are using the Net Promoter approach to creating closed loop feedback to help drive culture change. But I am also concerned that many companies just calculate a score and hope that means something. A little rigor in both measurement and in continuous improvement processes would be good for the community of Net Promoter adherents. Otherwise, Bridgeway may not be the only company on this post that merits the moniker of “self-puffer.”

Rob

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