Kindled Meme

– exploring the purpose of connection

The NPS Lag

4 Comments


“People’s willingness to buy, recommend, work for and invest in a company is driven 60% by their perceptions of the company and only 40% by their perceptions of their products.”

The Reputation Institute

 

I spend a lot of time looking at NPS – the Net Promotor System – the measurement of the ultimate question… “Would you recommend us to a friend.

Of all the KPI’s that get tracked and measured at an operational level.. NPS is the one measurement that gets reported upwards. Its a measurable in “digital” and in our customers experience that has board room recognition.

There are some companies that have high scores – think Apple, think Google and think of the unexpected ones – USAA and think the UK’s Giff Gaff with its exceptional advocacy and community dynamics.

NPS is a lead-indicator of the future financial success of a business.  It’s owned by Bain and they ‘work it’ nicely. They have earned attention.

I find myself looking at Forresters Cxi measurements…another spin on advocacy and I find myself reading The Reputation Institutes statement above.

If willingness to engage/consume/recommend is driven by peoples perceptions of a company – and I then reflect upon the multitude of comments on Apples recent quarterly results – they sold shed-loads of phones – the most “up-arrowed” comments on the BBC news article were questioning the ethics of Apple – payment of tax, supply chain concerns, lack of philanthropy …

What gives? Apple are successful, the NPS is in the 70’s and yet the perceptions are ‘critical’. Nice phone tho….

“60% perceptions, 40% product”?

Im either reading the wrong news site or the influence balance quoted is wrong. Lets pick another:

“60% silky glass screens, 40% me-too candy crush addictions”

We want loyalty – the retention, the enrichment and the advocacy – but I don’t think people really have a handle on what really drives it. What are the antecedents – in our context, in our ‘places’.

We all know the visceral reaction to “wrong” but if you do want to build a ‘cake of wow’ Im not convinced we really know what to put in the mixing bowl.

Too much fluff – too little enquiry – almost zero evidence.

Yes an experience matters.. but what builds it!

 

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Author: jameslramsay

Doing digital, social and business -soaking up good stuff and sharing when I can - connecting ideas, people and opportunity.

4 thoughts on “The NPS Lag

  1. I think this is down to the apple critique being a minority concern. NPS tracks the man on the clapham omnibus, not the commenters and up-voters. So you’re not reading wrong news site, just a skew of perspective. You’ll know the latest thinking on x% of people consuming vs creating online content better than me.

    I get the sense that the common perception of apple isn’t (yet?) as evil tax-dodging, slave-labour, greedy corporate machine. Still have some outsider, “think differently” halo. For now. Let’s see.

    PS – Didn’t know NPS was owned by Bain – smart move!

    • As a rule of thumb (but know exactly through BBC analytics…) – Expect 1% to comment – 9% to show up and like and the remaining 90% to consume. Big consumption for an apple story – but only the engaged/partisan/unhinged step into the dark world of the blog comments….

      I still like apple – I don’t want to switch back to the other way… But I do wince at their gross margins and at myself for not challenging myself to try something new.

      I stroke my macbook and say “Do you like my evil tax-dodging, slave-labour, greedy corporate machine pc – the battery life is great – I never need to reboot it – look how easy I do a screen capture… my hipster boho-chic kids play minecraft on it”

      I shudder…

      This is the list of the brands with top reputations:

      1. BMW
      2. Sony
      3. Walt Disney Company
      4. Daimler
      5. Apple
      6. Google
      7. Microsoft
      8. Volkswagen
      9. Canon
      10. LEGO

      Scanning the list I can feel emotion or aversion to them just reading the words. And where is samsung. And oh, so nice to have you with us this evening, Sony… you and I go so far back together

      🙂

      • Don’t feel to bad about trying something new; I was goaded into trying android for a month, gave it a fair crack, and happily remain fully Appled – nothing compelling enough to switch for. And as for my ‘work’ Lenovo….. don’t get me started.

        Interesting the instant emotions conjured from that list. I’m thinking “Reputation for what exactly?”

  2. I stayed at an airBnB place this summer that included a “complementary tablet” – bye-gum it was frustrating (Android).

    The Lenovo/Windows experience is quite a treat isn’t it… Fran has one as part of her NHS role. I relish the challenge of troubleshooting it… frequently. Its nicety stretch yourself now and again…or daily as it happens…

    I like the look of the swipey tiles on Lumia… like the bright colored plastics… but don’t believe that microsoft will take it whereat deserves to be.

    Reputation for what exactly – is a good question.

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