Hotels are scanning Twitter for complaints from guests in their own building, then quietly upgrading the loudest ones. It's clever, and it might also be teaching customers exactly the wrong lesson about how to get good service. Here's where reactive social-media service crosses from helpful into perverse.
Database marketers have used Recency-Frequency-Monetary scoring since direct mail was the cutting edge, and Recency is consistently the best predictor of response. So how does NPS link to RFM? It turns out there's a clear, useful overlap that lets you combine both signals to predict next-best customer behaviour.
Australian NPS benchmarks consistently look worse than European ones in the same industry. Either Aussie service is genuinely worse, or something else is going on, here's a look at the Satmetrix data and the two explanations worth taking seriously.
A widely-shared ClickZ piece called out NPS for being statistically broken, methodologically arbitrary, and fundamentally wrong. It misses on all three. Here's a line-by-line response, useful the next time you see the same critique re-circulating on LinkedIn.
"How do we determine the value of NPS, in two sentences?" That's the question a customer's CFO asked when reviewing the investment in NPS data collection. The honest two-sentence answer needs three short logic links underneath it. Here they are, with a worked example using the customer lifetime value calculator.
Telstra started paying its resellers partly based on Net Promoter Score — a smart-looking lever, until you remember what happens to scores once incentives are attached. Front-line staff and reseller managers actively manipulate them, more than most companies expect. Here's what the anti-gaming strategy needs to look like, with worked examples of how gaming actually plays out.