Welcome, Guest Login Register
loading...
Net Promoter Community > Fred Reichheld's Blog > 2006 > June > 27
 
Currently Being Moderated

NPS--Why Some People Hate It

Posted by FredReichheld on Jun 27, 2006 1:21:52 PM

Some people feel deeply threatened by the growing popularity and acceptance of Net Promoter Scores (NPS), and they have launched campaigns attempting to discredit the concept.  Satisfaction-survey firms regularly excoriate NPS supporters in conferences, on web pages, in book reviews, and in blogs.  The phrases they use... "NPS is a danger to your company's profits"; "NPS hinders the building of better customer relationships"; "any statistics student would laugh"; and "NPS is the ultimate bait-and-switch scam" reveal an emotional urgency that transcends the putative logic of their arguments.

 

 

One senior airline executive confided that a group of his internal market researchers had banded together to try to "refute the Fred factor" so that senior management would not continue on the path to replacing their old (failed) feedback process with NPS. One satisfaction-survey firm has gone so far as to threaten me with lawsuits and has recruited well-connected friends to pressure me to stop commenting on the weaknesses of traditional satisfaction surveys.

 

 

What accounts for this emotional outburst against such a straightforward idea, that companies should systematically measure and manage the number of customer promoters and detractors? At least part of the answer is that many senior executives have long been disenchanted with the traditional satisfaction survey tools but have been reluctant to jettison these tools until they found something better. With NPS, they can envision a solution that is far more practical, and they are itching to get rid of the systems that have failed them. In the words of one Fortune 500 CEO: "NPS is a disruptive technology." As such, it will create winners and losers--and those losers (including some internal market researchers and lots of satisfaction-survey vendors) will fight fiercely to stall its progress.

 

 

But the NPS tide continues to build. More firms are joining the surge every day and defecting from disgruntled survey researchers and vendors. The reason that so many researchers hate NPS is that so many senior line executives love it. To quote the chief operating officer of one of the nation's leading financial-services firms, explaining why his firm was switching to the NPS framework:

 

 

The NPS approach really resonates with me for three reasons: 1) It is practical and action-oriented, 2) It establishes clear accountability, and 3) Front line teams like it--and it is their learning and behavior that really drives our customer experience.



Jun 28, 2006 10:19 AM Guest Sebastian Franck  says:

I can see where many of these detractors come from - many of the quoted comments can be found in Amazon reviews.

 

If, for a moment, we disregard the tone of the critics, I think it would be fruitful to address the criticisms voiced, directly. Criticisms e.g. directed at the methodology involved in the Bain analysis, of statistical (confidence interval) problems in converting a 10-point scale to a +/-/neutral scale or at the seeming simplicity of NPS covering up a continuing need for deeper diagnostic knowledge. I think all these criticism can and should be answered.

 

There is so much that seems right in NPS that I would love to have these quibbles eradicated. 

 

Jul 6, 2006 1:58 PM Guest Philippe Danielski  says:

I'm a promoter for NPS but I have trouble with one detractor's complaint.  They say the "1 Question" is not sufficient to determine action to improve a score.  IF (big if) additional survey questions can concretely point to actions needed to drive up satisfaction (and thus NPS score)isn't there merit in asking them?

 

Jul 6, 2006 2:26 PM Guest Jon Bryant  says:

In response to Phillipe, the one question gives you a score.  But if your customers have indicated what drives satisfaction, you can ask questions that will indicate the actions you should take to improve lagging NP scores.  This is what we have done, in one survey and it is working well.

 

Jul 6, 2006 3:31 PM Guest Net Promoter Community  says:

The two most recent Net Promoter blogs by Scott Smith touche upon some of the comments above.

 

From Scott Smith Blog 1: "There seems to be a misconception circulating in the market research community about what Net Promoter is all about. The main criticism stems from a belief that you cannot derive meaningful analysis from a single number. Instead, you have to ask lots of questions to get results."

 

READ MORE AT THIS LINK:

http://netpromoter.typepad.com/scott_smith/2006/05/what_is_enterpr.html

 

From Scott Smith Blog 2: "Lately I have been hearing similar stories about Net Promoter (NP). Clients tell me, 'We are asking the recommended questions, but nothing changes.'"

 

READ MORE AT THIS LINK:

http://netpromoter.typepad.com/scott_smith/2006/06/what_is_enterpr.html

 

 

Jul 10, 2006 9:06 PM Guest Rebecca O'Neil  says:

I am a huge NPS promoter in my company, but I am getting serious pushback from some in my organization who are fans of the customer satisfaction surveys you mention in your post. If the one question is just a metric and not actionable, why ask just one? Why not ask a host of other questions that really get at the WHY behind promoter or detractor status. I have not been able to overcome this yet. I can't get past the fact that one of these customer sat surveys in particular has an academic background, which really appeals to a lot of folks. NPS doesn't have the same history, no matter how convinced I am that it works based on your examples.

 

I'm also getting the kind of resistance i see in the Amazon reviews that Sebastian mentions. How do I counter attacks on the methodology involved in the Bain analysis, mentions of statistical problems in converting a 10-point scale to a +/-/neutral scale or complaints about actionability?.

 

Fred, I think you should answer these critics more directly. It would help all of us who want to advance your methodology to improve our growth.

 

Aug 8, 2006 5:39 AM Guest James Kelly  says:

Is there any evidence that NPS is relevant and accurate in professional or business to business situations.  In these situations there is not a large body of customers and the relationships are more personal and professional.  I am thinking about investment banking or consulting for example.  Does Bain use NPS for their own clients and if so has it shown any useful results?

 

Sep 29, 2006 1:04 PM Guest Guest  says:

Why don't the preachers of NPS practice what they preach and seek to understand the perspective of its Detractors, rather than marginalize the critics as greedy people out to protect their fiefdoms. Honestly, Reichheld's relentless anger at people questioning NPS is disturbing. A lack of willingness to engage in meaningful joint investigation with Detractors arouses my suspicion. In my experience, the best new ideas are able to grow from debate, especially without the unprofessional finger-pointing against PhDs and market researchers (I am neither).