net promoter scores (nps), tracking customer loyalty and ux

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Mat Walker - UXCamp Brighton November 2014 HOW LIKELY IS IT THAT YOU WOULD RECOMMEND THIS TALK TO A FRIEND? Net Promoter Scores and tracking customer loyalty

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This a talk I did at UX Camp Brighton on Net Promoter Scores (NPS). In the first part I go into NPS background and how its used and calculated. Then I go into strengths and weaknesses before finally talking about some good real life examples and some recommendations.

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Page 1: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

Mat Walker - UXCamp Brighton November 2014

HOW LIKELY IS IT THAT

YOU WOULD RECOMMEND

THIS TALK TO A FRIEND?Net Promoter Scores and tracking customer loyalty

Page 2: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

Page 3: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

Frederick F.

ReichheldCreator of the Net

Promoter Score

(NPS)

Page 4: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

Page 5: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

– Frederick F Reicheld,

“The One Number You Need to Grow” Havard Business Review

(December 2003)

“Most customer satisfaction surveys aren’t very

useful. They tend to be long and complicated,

yielding low response rates and ambiguous

implications that are difficult for operating

managers to act on. Furthermore, they are rarely

challenged or audited because most senior

executives, board members, and investors don’t

take them very seriously. That’s because their

results don’t correlate tightly with profits or

growth.”

Page 6: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

Customer Loyalty = Company Growth

Page 7: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

How likely is it that you would recommend our company/product/service to a friend or colleague?

Page 8: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

How likely is it that you would recommend our company/product/service to a friend or colleague?

1 2 3 4 5 6 7 8 9 100

Page 9: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

How likely is it that you would recommend our company/product/service to a friend or colleague?

1 2 3 4 5 6 7 8 9 100

Passives PromotersDetractors

Page 10: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

How likely is it that you would recommend our company/product/service to a friend or colleague?

1 2 3 4 5 6 7 8 9 100

Passives PromotersDetractors

Detractors (%) - Promoters (%) = NPS Score

(Max NPS Score = +100

Min NPS Score = -100)

Page 11: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

30 100 10

140 people answered the question “On a scale of 0-10 how likely would you be to recommend this product to a friend?”

Detractors Passives Promoters

Page 12: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

42% 14%

Detractors Passives Promoters

Page 13: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

42% 14%

Detractors Promoters

Page 14: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

-42%

Detractors

14%

Promoters

Page 15: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

-

NPS Score = 28

14%

Promoters

42%

Detractors

Page 16: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

So What?

Page 17: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

-22.5

-11.25

0

11.25

22.5

33.75

August September October November

Page 18: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

Page 19: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

WHAT ARE THE

ADVANTAGES OF NPS?• Easy to understand measure of loyalty

Page 20: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

WHAT ARE THE

ADVANTAGES OF NPS?• Easy to understand measure of loyalty

• Potentially high response rate

Page 21: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

WHAT ARE THE

ADVANTAGES OF NPS?• Easy to understand measure of loyalty

• Potentially high response rate

• Gets senior stakeholders thinking about their

customers

Page 22: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

WHAT ARE THE

ADVANTAGES OF NPS?• Easy to understand measure of loyalty

• Potentially high response rate

• Gets senior stakeholders thinking about their

customers

• Continuous measurement and recording

Page 23: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

WHAT ARE THE

ADVANTAGES OF NPS?• Easy to understand measure of loyalty

• Potentially high response rate

• Gets senior stakeholders thinking about their

customers

• Continuous measurement and recording

• Seen as a replacement for traditional surveys

Page 24: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

Now for the BAD

Page 25: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

– Micah Solomon, Forbes

Magazine, October 2014

“Various research,

including the work that

provides the conceptual

basis for the entire Net

Promoter Score

methodology, has found

a weak link at best

between a self-reported

satisfied customer and

repeat purchases from

that customer.”

Page 26: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

Page 27: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX
Page 28: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

Motivations

Page 29: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

Page 30: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

Page 31: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

Page 32: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

Page 33: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

NPS + UX

Page 34: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

Page 35: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

• Quality

• Value

• Ease of Use

THREE ADDED QUESTIONS

Page 36: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

Percent Satisfied

Fix Expand

MaintainLow Gain

• Ease of use

• Quality

• Value

Page 37: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

Page 38: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

Have you recommended UserVoice to anyone?

• No

• Yes, and this is how I described it: ______

Page 39: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

Who is doing NPS well?

Page 40: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

Page 41: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

SUMMARY

• NPS is a simple tool for measuring and tracking customer

loyalty/ satisfaction/ happiness…

• …If its implemented correctly and at the right time

• Online it can be used to gain feedback at key points in the

user journey

• Have an aggregated score and a more detailed score

• Add additional metrics to gain further insight to the score

Page 42: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

Thanks! :)@mat_walker | [email protected] | www.matwalker.co.uk

Page 43: Net Promoter Scores (NPS), Tracking Customer Loyalty and UX

@mat_walker UXCamp Brighton November 2014

LINKS

https://community.uservoice.com/blog/net-promoter-alternative/

https://hbr.org/2003/12/the-one-number-you-need-to-grow/ar/1