1NetPromoterScore:ALiteratureReviewandPerspective2ACSI•AmericanCustomerSatisfactionIndex•Leadingindexforcustomerloyalty/satisfactionuntilNPS•Mainaspects–Overallsatisfaction–Expectancydisconfirmation–Actualperformancevs.theideal•MaincompetitionisNPSFormoreinformationonACSI,visit(2004),Appendix3WhatisNPS?•Basedon“recommendintention”–Howlikelyisitthatyouwillrecommendustoafriendorcolleague?–0to10•NetPromoterScore=%promoters(9-10)minus%detractors(0-6)•IncreasingpromotersanddecreasingdetractorsiskeytogrowthReichheld(2003)4ControversyoverNPS•DebateoverNPSas“theultimatequestion”hassurfaced•Critics(Keininghametal.)•Supporters(Reichheld)5WeaknessesofNPS•Notinformative,notusefulwhenitstandsalone•Notthebestpredictorofgrowth•ToosimplistictorepresentallfacetsofcustomerloyaltyKeiningham(2007)6OtherIssueswithNPS•Notthecauseofgrowth—anindication•Categorizationofcustomersisbroad•NPS=40Brandt(2007),Mitchell(2008)7Inanutshell…Thisisnottodiscounttheirimportance,buttopointtothefactthatanysinglemetricdesignedtoexplaincustomerbehavioracrossadiversecustomerbaseisunlikelytobeanadequategaugeuponwhichmanagerscanact.Keininghametal.(2007,p.378)8StrengthsofNPS•Excellentstartingpoint•Identifiesmostvaluablecustomers•Standardquestionandscale•Itmakessenseanditworks(withfeedback)Cardis(2008),Anstead(2008),Blasbergetal.(2008)Mortimer(2007),Martin(2008)9Justask:doesitmakelogical,commonsensetoyou?Yeah,itdoes.Reichheld,inaninterviewwithMortimer(2007)10ImplementationofNPS•Aphilosophy•SomesectorsdiscussedmoreRitson(2007),Auda(2007),Tiltman(2007),Reichheld(2003)11NPSandFinancialServices•FinancialservicesconsistentlyhavelowerNPScomparedtoothersectors•NPShighlystronglyrelatedtorevenuegrowthforbanking—singlemostreliablepredictor•4keydriversofNPSinbankingTiltman(2007),Keiningham(2007),Brandt(2007)12WhatdoesNPSmeanforfinancialservices?•Long-termstrategy•Non-traditional(i.e.online)bankshavegrownrapidlyandhavehigherNPS•InterpretNPScarefully•StayinvestedinmissionforsatisfiedcustomersBrandt(2007)13HowtoUseNPSEffectively•Knowyourcustomersandwhattheywant•Followup•Collectdataregularly•ActonfeedbackMittal&Kamakura(2001),Blasberg(2008),Nicks(2006)14TheBottomLine•NPSisajumpingoffpoint…–Tellsyouhowmanypromotersandhowmanydetractorsyouhave–Allowsforcomparisonrelativetoothercompanies–Servesasgaugeforcustomerloyalty•…butfollow-upisamust.15FutureResearch•NPSintheB2Bcontext•NPSinfinancialservicesotherthanbanking16ReferencesAnstead,M.(2008).How&whytousenetpromoterscores.CreditUnionJournal,18February:8.Auda,M.(2007)Netpromoterscore:Whatisitandshouldyourcompanybeusingit?MRPerspectives:EmergingTrends,Topics,andBestPracticesinMarketResearch,22June.Blasberg,J.,Vishwanath,V.,&Allen,J.(2008).Toolsforconvertingconsumersintoadvocates.Strategy&Leadership,36(2),16-23.Brandt,D.R.(2007).ForGoodMeasure.MarketingManagement16(1):20-25.Cardis,P.(2008)Ascoreworthkeeping.ProfessionalBuilder,January.Gigliotti,A.,Meyers,J.,Morgan,N.A.,Pingitore,G.,&Rego,L.L.(2007).NPSnottheonlyway.MarketingNews,15September:48.Keiningham,T.L.,Cooil,B.,Andreassen,T.W.,&Aksoy,L.(2007a).ALongitudinalExaminationofNetPromoterandFirmRevenueGrowth.JournalofMarketing71(3):39-51.Martin,J.(2008).Getcustomerstosellforyou.FSB:FortuneSmallBusiness,18(5).Mittal,V.,&Kamakura,W.A.(2001).Satisfaction,repurchaseintent,repurchasebehavior:Investigatingthemoderatingeffectofcustomercharacteristics.JournalofMarketingResearch,38,131-142.Mitchell,A.(2008).Theonlynumberyouneedtoknowdoesnotadduptomuch.Marketing,3June:22.Mortimer,R.(2007).Reichheldratesreputation.BrandStrategy,October.Nicks,S.(2006).Whatnottodowithnetpromoter.BusinessWeekOnline,1August:12.Reichheld,F.(2003).Theonenumberyouneedtogrow.HarvardBusinessReview,December:1.Ritson,M.(2007).Simple,abitsloppy,butnotstupid.Marketing,5September.Thompson,B.(2007).Findtheultimateloyaltymetrictogrowyourbusiness.CustomerThink:Customer-CentricBusinessStrategy,1October.Tiltman,D.(2007).Theonlyquestionyouneedtoask.Marketing,21February:30-32.Turel,O.(2004).UsersatisfactionwithmobileservicesinCanada.ProceedingsoftheThirdInternationalConferenceonMobileBusiness,M-Business