I love reading comments about Net Promoter. I commonly see questions such as these: “Is NP really the best number?” “Is it the one number that tells you everything?” “Is it the perfect measure of customer loyalty?” The debate seems to focus on how accurately Net Promoter measures loyalty.
This is a statistician’s argument, which proves to me that many people don’t understand the full importance of Net Promoter. So I will go out on a limb here: there are most likely purer ways to measure loyalty, if we could all agree to what loyalty means. But is Net Promoter (NP) the best number for a business to focus on? The answer is a resounding yes. Let me explain.
What I love about Net Promoter is how easily it can be communicated to and understood by all members of an organization. I can hear the hallway conversations now. “Our Net Promoter score is up four percent!” That sort of sounds like, “My stock just went up four points!”
In other words, you do not need to be a statistician to understand the importance of the number. Employees can enthusiastically say, “Our Net Promoter score is up 60%!” It is precisely because this metric is so easily understood that the company can rally around the concept of customer recommending customers.
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