net promoter scores (nps), tracking customer loyalty and ux

Post on 02-Jul-2015

714 Views

Category:

Data & Analytics

0 Downloads

Preview:

Click to see full reader

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 | hello@matwalker.co.uk | 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

top related