net promoter scores (nps), tracking customer loyalty and ux
DESCRIPTION
This a talk I did at UX Camp Brighton on Net Promoter Scores (NPS). In the first part I go into NPS background and how its used and calculated. Then I go into strengths and weaknesses before finally talking about some good real life examples and some recommendations.TRANSCRIPT
Mat Walker - UXCamp Brighton November 2014
HOW LIKELY IS IT THAT
YOU WOULD RECOMMEND
THIS TALK TO A FRIEND?Net Promoter Scores and tracking customer loyalty
@mat_walker UXCamp Brighton November 2014
@mat_walker UXCamp Brighton November 2014
Frederick F.
ReichheldCreator of the Net
Promoter Score
(NPS)
@mat_walker UXCamp Brighton November 2014
@mat_walker UXCamp Brighton November 2014
– Frederick F Reicheld,
“The One Number You Need to Grow” Havard Business Review
(December 2003)
“Most customer satisfaction surveys aren’t very
useful. They tend to be long and complicated,
yielding low response rates and ambiguous
implications that are difficult for operating
managers to act on. Furthermore, they are rarely
challenged or audited because most senior
executives, board members, and investors don’t
take them very seriously. That’s because their
results don’t correlate tightly with profits or
growth.”
@mat_walker UXCamp Brighton November 2014
Customer Loyalty = Company Growth
@mat_walker UXCamp Brighton November 2014
How likely is it that you would recommend our company/product/service to a friend or colleague?
@mat_walker UXCamp Brighton November 2014
How likely is it that you would recommend our company/product/service to a friend or colleague?
1 2 3 4 5 6 7 8 9 100
@mat_walker UXCamp Brighton November 2014
How likely is it that you would recommend our company/product/service to a friend or colleague?
1 2 3 4 5 6 7 8 9 100
Passives PromotersDetractors
@mat_walker UXCamp Brighton November 2014
How likely is it that you would recommend our company/product/service to a friend or colleague?
1 2 3 4 5 6 7 8 9 100
Passives PromotersDetractors
Detractors (%) - Promoters (%) = NPS Score
(Max NPS Score = +100
Min NPS Score = -100)
@mat_walker UXCamp Brighton November 2014
30 100 10
140 people answered the question “On a scale of 0-10 how likely would you be to recommend this product to a friend?”
Detractors Passives Promoters
@mat_walker UXCamp Brighton November 2014
42% 14%
Detractors Passives Promoters
@mat_walker UXCamp Brighton November 2014
42% 14%
Detractors Promoters
@mat_walker UXCamp Brighton November 2014
-42%
Detractors
14%
Promoters
@mat_walker UXCamp Brighton November 2014
-
NPS Score = 28
14%
Promoters
42%
Detractors
@mat_walker UXCamp Brighton November 2014
So What?
@mat_walker UXCamp Brighton November 2014
-22.5
-11.25
0
11.25
22.5
33.75
August September October November
@mat_walker UXCamp Brighton November 2014
@mat_walker UXCamp Brighton November 2014
WHAT ARE THE
ADVANTAGES OF NPS?• Easy to understand measure of loyalty
@mat_walker UXCamp Brighton November 2014
WHAT ARE THE
ADVANTAGES OF NPS?• Easy to understand measure of loyalty
• Potentially high response rate
@mat_walker UXCamp Brighton November 2014
WHAT ARE THE
ADVANTAGES OF NPS?• Easy to understand measure of loyalty
• Potentially high response rate
• Gets senior stakeholders thinking about their
customers
@mat_walker UXCamp Brighton November 2014
WHAT ARE THE
ADVANTAGES OF NPS?• Easy to understand measure of loyalty
• Potentially high response rate
• Gets senior stakeholders thinking about their
customers
• Continuous measurement and recording
@mat_walker UXCamp Brighton November 2014
WHAT ARE THE
ADVANTAGES OF NPS?• Easy to understand measure of loyalty
• Potentially high response rate
• Gets senior stakeholders thinking about their
customers
• Continuous measurement and recording
• Seen as a replacement for traditional surveys
@mat_walker UXCamp Brighton November 2014
Now for the BAD
@mat_walker UXCamp Brighton November 2014
– Micah Solomon, Forbes
Magazine, October 2014
“Various research,
including the work that
provides the conceptual
basis for the entire Net
Promoter Score
methodology, has found
a weak link at best
between a self-reported
satisfied customer and
repeat purchases from
that customer.”
@mat_walker UXCamp Brighton November 2014
@mat_walker UXCamp Brighton November 2014
Motivations
@mat_walker UXCamp Brighton November 2014
@mat_walker UXCamp Brighton November 2014
@mat_walker UXCamp Brighton November 2014
@mat_walker UXCamp Brighton November 2014
@mat_walker UXCamp Brighton November 2014
NPS + UX
@mat_walker UXCamp Brighton November 2014
@mat_walker UXCamp Brighton November 2014
• Quality
• Value
• Ease of Use
THREE ADDED QUESTIONS
@mat_walker UXCamp Brighton November 2014
Percent Satisfied
Fix Expand
MaintainLow Gain
• Ease of use
• Quality
• Value
@mat_walker UXCamp Brighton November 2014
@mat_walker UXCamp Brighton November 2014
Have you recommended UserVoice to anyone?
• No
• Yes, and this is how I described it: ______
@mat_walker UXCamp Brighton November 2014
Who is doing NPS well?
@mat_walker UXCamp Brighton November 2014
@mat_walker UXCamp Brighton November 2014
SUMMARY
• NPS is a simple tool for measuring and tracking customer
loyalty/ satisfaction/ happiness…
• …If its implemented correctly and at the right time
• Online it can be used to gain feedback at key points in the
user journey
• Have an aggregated score and a more detailed score
• Add additional metrics to gain further insight to the score
@mat_walker UXCamp Brighton November 2014
Thanks! :)@mat_walker | [email protected] | www.matwalker.co.uk
@mat_walker UXCamp Brighton November 2014
LINKS
https://community.uservoice.com/blog/net-promoter-alternative/
https://hbr.org/2003/12/the-one-number-you-need-to-grow/ar/1