Posts Tagged ‘market research’

The Net Promoter Score, the debate continues…

June 11, 2019

For years now, it feels like I go through phases where clients ask me “what do you think of the Net Promoter Score?” and we have lots of meaningful chats about it, then I hear nothing about it for a while. Well it seems it is back on client’s radar again, so I thought I would jot down my point of view on it. I should point out that my perceptive on the score is based on my experience of how my clients have been either ‘gathering the score’ or ‘using it’.

Let me start of by saying that I believe it is without doubt a useful measure of customers relationship strength, but I believe it is limited in terms of providing strategically focused outcomes. I base this thinking on the fact that it is often used in a manner which makes the score one dimensional when a multidimensional measure of the strength of the customer relationship is something we should be striving for (in order to better reflect lived experiences). A single score can be limiting, for example if you have a low NPS score it’s important to understand “why” the number is low so that you can improve that score. Thus additional research to determine why people talk positively or negatively is still necessary if all you have is the NPS score (which is often the case, especially if just ‘adding it on’ to a survey).  

A potential ‘recommendation” is more often than not an effect of service received, the NPS can initially measure this for you and in time monitor this, but it does not give analysis that will enable you to measure the underlying cause of likelihood to recommend, you need to explore the “effect” of service (and other relevant metrics) on recommendation and identify opportunities for improvement. In addition, is just collecting a standalone NPS measure it is not effective for predicting business performance as it provides no direction about what to do, that said a standalone NPS may give you a “motivational” score should you need to improve but little or no guidance for management on “what to do”.

Furthermore, you also must consider the market in which your (or your client’s) company operates, I believe the NPS is better suited to business that operate in a market where customer interactions are fairly simple and are confined to a limited number of possible touch-points (namely business-to-consumer retail settings). It is far less suited for a company operating in a market with complex customer interactions and a multitude of possible touch-points and processes to manage (namely business-to-business or where complex service relationships exists with consumer, such as financial services).

Is the “Consumer Focus Group” Dead?

June 9, 2010

Ok so sometimes it feels like some of my respondents were dead, but does that really mean that as an approach to research that the focus group is dead?

I don’t think so, I know there are other ways and means by which to get out there and “explore the world and minds” of the consumer, but focus groups still offer us an invaluable tool to gather insights.

I know there is trend is to explore other research avenues, and that’s great, it helps feed the evolution of how we gather information, but lets not throw the baby out with the bath water. Sometimes it’s just not suitable to do a more ‘ethnographic’ approach (and indeed sometimes it is not even required). Although I do miss the days of being able to run groups in a respondents home, having a sit round the living room with a bunch of women, drinking tea, eating biscuits and talking about what they but from the supermarket and why was always good fun, but alas health and safety regulation won’t allow it.

Clients are looking for more “sexy and exciting” ways of conducting qualitative projects, and that’s great, but the process should not be at the expense of the desired outcomes.

I’m all ears for WHY the focus groups is dead, but all I hear is the phrase with little or no evidence to back it up….