Traditional methodology for obtaining feedback and assessing customer loyalty, NPS is an important ally to improve the relationship with the consumer, but it will not bring satisfactory results if it is not applied efficiently.
That is why, it's important to be aware of the best ways to set NPS goals, adopting some postures:
- Understand why pre-defined quality zones are not a good reference.In the absence of references, benchmarking data, many companies end up using NPS “best practices” tables incorrectly.
Zone of Excellence - NPS between 75 and 100
Quality Zone - NPS between 50 and 74
Improvement Zone - NPS between 0 and 49
Critical Zone - NPS between -100 and -1
Such tables are generalist and ignore important points that we must consider in setting goals. Let's go to them:
to 1) Metas SMART
You may not know it yet, but the SMART technique is widespread and used to set goals.
S – Specific (Specific)
M – Measurable (Measurable)
A – Attainable (Attainable)
R – Relevant (Helpful)
T – Time Based (Time)
All SMART points are important, but for the explanation of this text the “A”, of Attainable, and the "R", Relevant, are the most relevant (to learn more about SMART click here).
When we set a goal for the organization, we need to define something that is ACHIEVABLE. Otherwise, we generate frustration in everyone involved and the NPS program will fall into disrepute in the organization. Now, imagine that one of your units has an NPS of 30 and you establish a “Quality Zone” goal, as NPS of 60. There is some doubt that this unit will have difficulty in reaching the goal.
Fred Reichheld, in his book “The Ultimate Question 2.0” (The definitive question 2.0), makes the importance of understanding the references of your market very clear. That is, retail has an NPS benchmarking zone, the telecommunications area has another and transportation, another. Thus, if you need a relevant NPS reference to determine your long-term metrics, you need to understand the NPS range of your segment and where your brand is.
Let's say your company is a cable TV provider. You set a goal within the “quality zone” (between 50 and 74), but as you can see below, that market in the United States in 2013 had a maximum NPS of 18. That is, establish the goal between 50 and 74 will probably only put the NPS project into disrepute, after all, this does not seem to be an attainable goal in the segment.
c) Research has bias
The biggest influences in the case of NPS surveys are methods and collection channels.
The issue of bias in satisfaction surveys is very controversial. There is always someone saying that changing the color of the search buttons, the collection channel - or any other detail - may change the search results. I always join the discussion stating that I cannot “change”, but that "will change". Below, in the image 1, the impact of a very slight change in the research collection method and, in the image 2, the difference of NPS in the same brand, but on different channels.
- Step by step on how to set NPS goals:to 1) Measure brand NPS, divisions, regional, each store and - where possible - each key employee involved in transactions;b) Based on the results found and benchmarking in its segment, define achievable short-term objectives, medium and long term for the organization's overall NPS.:
Result of Brand Measurement in the 1st month: 50
Short term (3 months): 60 → +10 points in relation to the 1st month
Mid-term (6 months): 70 → +20 points in relation to the 1st month
Long term (12 months): 75 → +25 points in relation to the 1st month
Based on the organization's overall goals, define the objectives of the units.
Result of the Unit 001 in the 1st month: 23
Short term (3 months): 33 → +10 points in relation to the 1st month
Mid-term (6 months): 43 → +20 points in relation to the 1st month
Long term (12 months): 48 → +25 points in relation to the 1st month
Result of the Unit 010 in the 1st month: 70
Short term (3 months): 80 → +10 points in relation to the 1st month
Mid-term (6 months): 90 → +20 points in relation to the 1st month
Long term (12 months): 95 → +25 points in relation to the 1st month
In this way, it is possible to obtain results in a feasible and consistent way, making the use of NPS important for the constant improvement of the relationship with customers.
by Tiago Serrano