The document provides an overview of developing a Net Promoter Score (NPS) program for client XYZ. It discusses the pros and cons of using NPS as a metric, as well as potential pitfalls to avoid. Key recommendations include building a more comprehensive customer feedback program, gaining organization-wide commitment, implementing timely follow-up processes, and clearly communicating goals, lessons learned, and actions taken.

1. Developing a Successful NPS™ Program
Developed For Client XYZ
Prepared by:
Brett Sharp, MMR
Sharp Business Intelligence
m: 470.774.3745
sharp.brett@gmail.comApril 3, 2015

2. Brett Sharp, MMR
Customer Success/Experience
Strategic Marketing Insights
Breakthrough Innovation
Turning Data Into Action
Customer Experience Executive passionate about using multiple data sources
(transaction and relationship surveys, call centers, travel agents, sentiment analysis,
channel feedback, etc.) to drive business strategy and ensure commercial success.
Extensive experience understanding customer expectations and motivations, guiding
operational enhancements, and developing customer feedback programs to ensure
successful implementation of business intelligence platforms and scorecards across
diverse industry verticals, including Intercontinental Hotel Group, CenturyLink,
ExxonMobil, GS1 US, Giant Cement, Unilever, Pepsi, Energizer, and Hill’s Pet.
 Strategic thinker who provides consultative guidance and practical application of
insights to complex client challenges across: Packaged Goods, Retail, Durables,
Hospitality, Technology/Telecom, Home Improvement, Finance and Healthcare.
 Highly experienced in market dynamics of both business-to-business (B2B) and
consumers (B2C) – including multi-tier structures with a B2B core client with
consumers as ultimate end-users.
 Experienced in most research protocols, including customer experience, new
product innovation, brand & communications, segmentation/positioning,
qualitative exploration and in-store shopper experience.
 Masters in Market Research (MMR) from Southern Illinois University at
Edwardsville.
 Bachelors in Marketing from Fort Lewis College in Durango, CO.
Interests include:
experimenting with new
culinary tastes and styles,
listening to local live bands
from a wide variety of
musical styles and most
outdoor activities…
regardless of the weather.

3. Goals and Objectives…for Discussion
• Corporate Growth Strategy
– Market-share objectives.
– Revenue/profitability objectives.
• Organizational Structure and Accountability
– Divisional reporting structure.
– Divisional/group goals, metrics and accountability.
• External Market Environment and Influences
– Industry assessment as Dynamic, Growth, Mature, Flat, Declining.
– Competitive threats, actions, or likely potential response.
– Industry reputation, category benchmarks or existing press coverage
regarding brand, quality, ethics, service, market expansion, financials,
employee engagement, public relations, investors, etc.
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4. Net Promoter Score (NPS)™ Overview
• History of NPS
– Harvard Business Review (HBR) article in 2003, Frederick Reichheld
proposed new customer satisfaction metric with intent to improve
customer repurchase rates.
– He claimed it was “100% accurate in determining revenue growth”
and termed, “The One Number You Need to Grow”.
– Such claims gained immediate popularity among the C-suite and NPS
exploded in usage…and is now included in three-quarters of Fortune
100 customer experience programs.
– Since 2007, tremendous debate has arisen regarding the efficacy of
NPS for growth predictions. IPSOS Loyalty published an article in
Journal of Marketing clearly refuting success and Maritz similarly
published an article in Marketing Management – both led to Reichheld
restating NPS is “simply irrelevant” in some markets and industries.
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5. Pros of NPS™ as a Growth Metric
• Simplicity of a “one-number metric for success”.
• Unity of organization and staff around important goals.
• Senior leaders LOVE simple analysis solutions.
• Can help develop a customer-centric culture from top-down.
• Interpretation is easy for most to understand and embrace.
• Some type of Recommendation question is included in
roughly 90% of all customer experience feedback programs.
• Benchmarking is super easy (though not always relevant)
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6. Cons of NPS™
• Lack of concrete evidence linking to financial performance (e.g. profit,
revenue growth, or investor performance).
• May work adversely in mature or complex industries where a majority of
potential customers may have already tried brand.
• NPS is purely an outcome metric and alone will not provide detailed
diagnostics to truly understand “why” and “what”.
• Measure can be highly volatile with small sample sizes, in mature markets,
or sectors with long purchase cycles.
• “Halo effect” of response bias of most satisfied customers being ones to
respond and NPS’ assumption of a positive response
• NPS is often solely a closed-ended question and doesn’t allow for clarity
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7. “Sand Traps” to Avoid with NPS™
Based on over 10 years experience guiding companies as they develop NPS – or other
Customer Experience metric – programs into their organization, here’s some
actionable tips to help you prevent the potentials pitfalls.
1. Assuming it is the ONLY number you need to know.
2. Making NPS one person’s or one division’s responsibility.
3. Building too many OR too few questions in the survey.
4. Managing very low customer response rates.
5. Not implementing timely follow-up processes into system.
6. Forgetting “lessons learned” from previous waves of feedback.
7. Keeping any learning and future plans to yourself.
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8. Summary of Critical Success Factors
“Sand Traps” to Avoid
1. Assuming NPS is ONLY number you
need to know.
2. Making NPS one person’s or one
division’s responsibility.
3. Building too many OR too few
questions in survey.
4. Managing very low customer response
rates.
5. Not implementing timely follow-up
processes into system.
6. Forgetting “lessons learned” from
previous waves of feedback.
7. Keeping any learning and future plans
to yourself.
Recommendation
1. Build a customer-centric focused feedback program that both
monitors and diagnoses “what” and “why” changes occur.
2. Customer-centricity is only successful if fully embraced throughout
entire organization – starting with Senior Leadership on down – by
creating a fully closed-loop process for feedback and action.
3. Survey length is ideal if 5-10 minutes, which can easily include
roughly 8-20 relevant questions.
4. Shorter surveys and relevant questions enhance response rates
(expect 15-40% early on)
5. ANY customer with an issue NEEDS to have it resolved quickly.
Often a multi-pronged approach is required to fulfill the diverse
needs of each group simultaneously; as sequential can be risky.
6. Track and publish all improvements, learning, and changes made to
program for all to be aware.
7. Similar to #6, track and publish internally and externally all
changes, learning and actions taken. Remember, customer-centric
means full transparency!
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9. Key Issues Going Forward
• Near term Obstacles to Adoption
– Identify what is ultimate goal of customer experience program and
create metrics to ensure accurate measurement and progress.
– Determine what units/divisions require own group scores.
– Consider aspects of internal implementation and customer adoption.
• Long term Obstacles or Areas of Resistance
– Assess organizational structure and ability to respond to issues.
– Clearly state consequences of lack of action or adequate structure.
• Consider All Resources Involved
– Financial requirements needed for proper implementation.
– Personnel needed, either internally or externally.
– Consider promotion activities, services offer/develop, etc.
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10. Suggested Immediate Next Steps
• Prepare thoroughly prior to rolling out any NPS program.
– Develop “Core Team” of cross-functional advisors (accountability).
– Identify all components of closed-loop system for feedback and action.
– Determine appropriate NPS question modifications, if needed.
– Identify key diagnostic questions and “root cause” measures to include.
– Consider incorporating NPS as part of a composite metric for stability.
• Set clear expectations with senior leadership on advantages and
limitations of program.
– DO NOT incorporate NPS into corporate compensation metrics.
– Full transparency and disclosure – at all levels internally – and externally
with customers is imperative to ensure authenticity.
– Communication needs to be regular, relevant, and right (accurate).
• Remember, this is a journey towards changing your organization to
be one of true customer-focus…it takes time!
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