Database marketers have used Recency-Frequency-Monetary scoring since direct mail was the cutting edge, and Recency is consistently the best predictor of response. So how does NPS link to RFM? It turns out there's a clear, useful overlap that lets you combine both signals to predict next-best customer behaviour.
Australian NPS benchmarks consistently look worse than European ones in the same industry. Either Aussie service is genuinely worse, or something else is going on, here's a look at the Satmetrix data and the two explanations worth taking seriously.
A widely-shared ClickZ piece called out NPS for being statistically broken, methodologically arbitrary, and fundamentally wrong. It misses on all three. Here's a line-by-line response, useful the next time you see the same critique re-circulating on LinkedIn.
"How do we determine the value of NPS, in two sentences?" That's the question a customer's CFO asked when reviewing the investment in NPS data collection. The honest two-sentence answer needs three short logic links underneath it. Here they are, with a worked example using the customer lifetime value calculator.
Telstra started paying its resellers partly based on Net Promoter Score — a smart-looking lever, until you remember what happens to scores once incentives are attached. Front-line staff and reseller managers actively manipulate them, more than most companies expect. Here's what the anti-gaming strategy needs to look like, with worked examples of how gaming actually plays out.
Bain's Rob Markey turned up on a BBC radio show about the NHS Friends and Family Test and dropped five short observations that apply to almost any customer feedback program. Clarity over complexity. Accuracy as a false god. Here's the five, with the context that makes each one useful in your own program.