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1

IF NPS DRIVES GROWTH

WHAT DRIVES

NET PROMOTER SCORE ?*

* Findings of an empirical study with sample size 14,600 respondents

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2

NPS : The New Performance Metric

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NPS works*

* At least in some cases

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NPS works*

* At least in some cases

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What Drives NPS ?

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What Drives NPS ? ( Top Down Approach)

In his book The Ultimate Question, FredReichheld answers this question with thefollowing three strategies

Create a complete customer experience capableof delighting each targeted segment

Bust the silos and deliver the proposition

end to end

Renew and reinvent customer experienceevery time.

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Improvement

Our Hypothesis

NPS improvement by improving Service

Quality at critical touch points (Bottom upApproach)

ServiceImproveme

nt

ServiceImproveme

nt

Delighted

Delighted

Dissatisfied

Satisfied

Satisfied

Dissatisfied

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Distancefrom

Dissatisfaction

Threshold

Dissatisfied

Delighted

Satisfied

Overall Customer Status

System employed for Satisfaction Measurement

The MOSTER System

TypicalMOSTERSystemOutput

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CCI=(% Delighted + % Satisfied)(% Dissatisfied)

For all the studies,

besides estimating the NPS value for each brand,we also estimate a new construct called Customer

Classification Index ( CCI )

How Does MOSTER Classification relates to NPS

And the results are.

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R =0.632 Source : 16 projects, Total sample size

14,600

NPS Vs CCI

-80.0

-60.0

-40.0

-20.0

0.0

20.0

40.0

60.0

80.0

100.0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

CCI NPS

Customer Composition Drives NPS

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DELIGHTED CUSTOMERS Vs PROMOTERS

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

% Delighted % Promoters

R

=0.60

2 Source : 16 projects, Total sample size

14,600

Delighted Customers become Promoters

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Distancefrom

Dissatisfaction

Threshold

Marginally belowdelight

(Upper threshold of

delight)

Dissatisfied

Delighted

Satisfied

How to Improve CCI

By acting on the margin..

Marginally Dissatisfied(Lower threshold of satisfaction)

Marginally Delighted

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How MOSTER System improves CCI

Threshold valuesFigures are in

percentage of total

respondents

Delighted

9

12

31

Satisfied

30Dissatisfied

18

Attribute: Availability of all models & colors

A small changeof ratings on thisattribute willresult in 18%moving from

dissatisfied tosatisfied AND12% fromsatisfied todelighted=30%LikelyImpact OfMarginalImprovement

We estimate Improvement Potential for each

Attribute

Improvement Potential = 18 % + 12 % = 30 %

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How MOSTER System improves CCI

Threshold valuesFigures are in

percentage of totalrespondents

Delighted 9

12

31

Satisfied

30Dissatisfied

18

Present CCI ={9% + (31 % + 12 %)} (48 %)

= 4 %

Threshold values

Delighted

9

12

31

Satisfied

30Dissatisfied

18

New CCI =

{ (12 % + 9%) + (31 % + 18 %)} (30 %)

= 40 %

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What does The MOSTER System offer

Thus through a systematic action plan to

continuously increase the proportion ofdelighted customers and reduce

proportion ofdissatisfied customers, NPS

value can be improved

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Thank you

www.metricconsultancy.com

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Metric Consultancy (UK)

Ltd.