1

IF NPS DRIVES GROWTH

WHAT DRIVES
NET PROMOTER SCORE ?*

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

 2
NPS : The New Performance Metric
NPS works*……………

* At least in some cases

NPS works*……………

* At least in some cases

What Drives NPS ?
What Drives NPS ? ( Top Down Approach)

In his book “The Ultimate Question”, Fred

Reichheld answers this question with the
following three strategies

Create a complete customer experience capable

of delighting each targeted segment

Bust the silos and deliver the proposition

“end to end”

Renew and reinvent customer experience

every time.
Our Hypothesis……
NPS improvement by improving Service
Quality at critical touch points (Bottom up
Improvement
Approach)

Delighted
Delighted

Satisfied

Satisfied

Service
Dissatisfied
Improveme
nt Dissatisfied
System employed for Satisfaction Measurement
The MOSTER System

Typical
MOSTER
Overall Customer Status
System
Output

Distance
Delighted
from
Dissatisfacti
on
Threshold

Satisfied

Dissatisfied
How Does MOSTER Classification relates to NPS

For all the studies,

besides estimating the NPS value for each brand,
we also estimate a new construct called Customer
Classification Index ( CCI )

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

And the results are………….

Customer Composition Drives NPS

NPS Vs CCI
100.0

80.0

60.0

40.0

20.0

0.0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
-20.0

-40.0

-60.0

-80.0

CCI NPS

R 2 =0.63 Source : 16 projects, Total sample size

14,600
Delighted Customers become Promoters

DELIGHTED CUSTOMERS Vs PROMOTERS

90.0

80.0

70.0

60.0

50.0

40.0

30.0

20.0

10.0

0.0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

% Delighted % Promoters

R2 Source : 16 projects, Total sample size

=0.60 14,600
So Improved CCI, results in
higher NPS
How to Improve CCI
By acting on the margin……………..

Delighted
Distance
from
Dissatisfacti
on Marginally Delighted
Threshold
Marginally below
delight
(Upper threshold of
delight)

Dissatisfied Satisfied

Marginally Dissatisfied
(Lower threshold of satisfaction)
How MOSTER System improves CCI

We estimate Improvement Potential for each

Attribute
A small change
Attribute: Availability of all models & colors of ratings on this
attribute will
Threshold values
Figures are in result in 18%
percentage of total Delighted moving from
respondents dissatisfied to
9 satisfied AND
12% from
satisfied to
delighted=
30%Likely
Impact Of
Marginal
18 12 Improvement

31
Dissatisfied Satisfied
30

Improvement Potential = 18 % + 12 % = 30 %
How MOSTER System improves CCI

Threshold values
Figures are in
percentage of total Delighte Present CCI =
respondents d 9
{9% + (31 % + 12 %)} – (48 %)
=4%

18 12

31
Dissatisfied Satisfied
30

Threshold values
Delighted New CCI =
9
{ (12 % + 9%) + (31 % + 18 %)} –
12
(30 %)
= 40 %

18 31
Dissatisfied Satisfied
30
 16

What does The MOSTER System offer

Thus through a systematic action plan to

continuously increase the proportion of
delighted customers and reduce
proportion of dissatisfied customers, NPS
value can be improved
 17

Thank you
Metric Consultancy (UK)
Ltd.
www.metricconsultancy.com