Customers who buy more are most valuable for any organization, this phenomena touches the heights of success when companies use proper means and ways for customer handling. Net Promoter Score (NPS) is the way to measure customer experience management and develop customer loyalty. Net promoter score which was introduced in 2003 is a way to measure the most valuable customers in an organization and through it organizations can not only improve their customer base but also improve their operating system, comparing handling and execution of sales promotion. But still there is need of empirical evidence that with increase in NPS score, subscribers of companies also increase. In this study we aim to measure NPS score of all cellular brands operating in Pakistan. Findings suggest that NPS score of Zong is on the top with highest NPS score, Ufone is on second, Mobilink third, Telenor forth and Warid is on fifth position. NPS score is measured and compared with subscriber’s growth. Furthermore, positive relation between NPS and subscribers increase is found. This study contains concrete statistics of the industry under consideration therefore is very beneficial for both practitioners and academicians for developing strategies in order to increase their NPS score.
Investigating relationship between nps and subscribers
1. Investigating relationship between NPS and subscribers
A Study in Pakistani telecom companies perspective
Authors:
Muhammad Farooq*
Dr. Asif Khurshid
*CLM Analyst Telenor, PhD Candidate, Department of Management Sciences, COMSATS Institute of Information Technology,
Islamabad.
**Assistant Professor, Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad.
2. Introduction
Most Valuable Customers for every organization
• Those who Buy more
• Those who Recommend to others
Traditional Business concept
New business Concept
Telecom sector in Pakistan
3. Literature Review
Reichheld, (2003)
NPS founder -In his paper (Reichheld, 2003), “The One Number You Need to Grow”, Fred
Reichheld emphasized the strong association between a company's development rate and its
Net Promoter Score in most economical businesses.
Meyer, (2008)
Net Promoter scores for goal setting and engaging the organization’s attention, though he
distinguishes that a rising or falling score doesn’t begin to reveal what is driving the trend.
Feed that information back to the organization regularly
Jean (2011)
The NPS calculates the difference between promoters and detractors. This ease of execution
has encouraged managers extensively to implement this new metric
Aksoy, Cooil,
Andrsen and
Williams, 2008)
have pointed out that NPS was not always the best indicator for predicting corporate
revenue growth, and results varied by industry.. Empirical evidence has emphasized the
NPS' relevance in the telecommunications Industry
Morgan and Rego,
(2006)
NPS is a clear sign of consumers' changing opinions over a given period of time as compared
to their initial choice.
4. Methodology
Population All Telecom Subscribers in Pakistan
Unit of Analysis Individual Subscribers
Contact Method Email, Facebook, LinkedIn
Contact Method Email, Facebook, LinkedIn
Sample
Selection
Subs Number, Email ID
Sample
Distribution
Subs Number, Email ID
Sampling
Technique
Quota Sampling
9. Back Up Slides
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