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Dynamic NPS for Competitive Advantage

July 28, 2011

The Net Promoter Score (NPS) was created by Satmetrix, Bain & Company, and Fred Reichheld to answer the “ultimate question” of whether or not your customers would recommend you. It asks the respondent to gauge on a scale of one to ten the likelihood of them recommending your company (or service or product). You can then calculate a score and benchmark against it.

If repeated at regular intervals through a survey of your user base this gives a good metric on which to measure the succes of your programs, marketing campigns or other initiatives among your existing customers. However it gives no inisght into how your score stacks up to other products or programs. There is no way to know from the score alone where you stand amongst the competition. And the frustrating thing is that a general survey of the population (and not just your users) gives skewed results since those respondents who may be unfamiliar with your offerings will more than likely give you either a zero (meaning no info) or a five (which is directly in the middle and thus considered neutral by most people) but both of those scores fall firmly inthe detractor category and alter your overall score.

We’ve got that problem solved. What we’ve been doing for our clients is to identify four or five major competitors and then run a dynamic survey in which only developers who are familiar with each of the competing companys or company offerings are asked to rate that company. In that way we can provide an NPS score for your company as well as NPS scores for your major competitors and all of the scores come from developers who have enough info to be valid participants. We can also look at the socres according to a different categorization of the scale so that you can see the original score plus a new variation that might make more sense. You can have both.

In addition we dynamically ask why each respondent answered the way he did to provide actionable data. You’ll know your NPS score, your competitors NPS scores and what to do to raise your own score. Repeat in six months or a year (depending on how fast your organization can move) to see how you’ve improved.

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