Sunday, September 5, 2010

Do you know your Net Promoter Score?

As the IT industry as a whole matures, metrics are becoming increasingly important in order to track performance and determine organizational goals around quality and productivity.We spend a considerable amount of time at Alliance measuring what we’ve defined as the RightMetrics: items such as Schedule Variance, Resource Utilization and Defect Density.

I will assert that most companies, especially in Information Technology, DO NOT spend enough time listening to their customers.Equally, if not more important, is what Fred Reichheld coined as ‘The Ultimate Question’ in his book, published by the same name.("The Ultimate Question" was ranked #1 on the Wall Street Journal's Business Best-Sellers List and #1 on USA TODAY's Money Best-Sellers List.)

The single question is as follows:

"How likely is it that you would recommend our company to a friend or colleague?"

The answer to this question can be divided into three categories:

1)Promoters (9-10 rating)

2)Passives (7-8 rating)

3)Detractors (0-6 rating).

To calculate the ‘Net Promoter Score’ NPS®, the percentage of Detractors is subtracted from the percentage of Promoters.

We have adopted the Ultimate Question into our Right Experience customer loyalty program.This is a question we are passionate about asking during our customer online satisfaction surveys as well as the site interviews we conduct face-to-face with clients.

At Alliance we scored a 60, scoring nearly 2x better than our closest competitor. And we won’t stop there.We’re very focused on improving our performance to move every customer into the ‘promoter’ category.

Do you know your score and how you compare to your competitors?

We’d love to hear your questions /comments about Net Promoter and the Customer Experience.

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