Dr Robert East: Net Promoter Score - is there a better alternative?

The Net Promoter Score: Is There a Better Alternative? Robert East, Kingston Business School, London [email_address]

Plan ,[object Object],[object Object],[object Object],[object Object],[object Object]

How much PWOM and NWOM? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

WOM and Market Share ,[object Object],[object Object],[object Object],[object Object],[object Object]

Market Share and WOM: Some Data on Mobiles ,[object Object],[object Object],Brand Market share Mean of given and received % PWOM % NWOM % Nokia 43 47 41 Sony-Ericcson 18 18 23 Samsung 15 17 23 Motorola 14 10 7 Other 8 8 7

Impact of PWOM and NWOM ,[object Object],[object Object],[object Object],[object Object]

Juster’s (1966) Measurement of Intention ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Results ,[object Object],[object Object],[object Object],[object Object]

Section 2: Alternative Measures ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Measure ,[object Object],[object Object],[object Object],[object Object]

The Net Promoter Score (NPS) How likely is it you would recommend us to a friend? 10 9 8 7 6 5 4 3 2 1 0 Extremely likely Extremely unlikely % Promoters minus % Detractors equals Net Promoter Score (NPS) Passives

Problems with the NPS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

The ACSI ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Problems with ACSI ,[object Object],[object Object],[object Object],[object Object]

Research Questions ,[object Object],[object Object],[object Object]

What WOM Have Promoters and Defectors Given ,[object Object],[object Object]

Three Categories ,[object Object],[object Object],[object Object]

We Can Do the Same for the ACSI Percentages of PWOM and NWOM produced by the satisfaction equivalent of promoters and detractors in three categories Category Promoters percentage of total … Detractors percentage of total … PWOM NWOM PWOM NWOM Supermarkets 26 0 9 28 Coffee shops 35 4 22 4 Skin care products 44 0 11 0

Does our Measure Differ from the NPS and ACSI? ,[object Object],[object Object],[object Object]

Correlations between Measures ,[object Object],[object Object],Category Metric NPS NEW (all) Supermarkets ACSI .99* .98* NPS .96* Coffee shops ACSI .74 .31 NPS .34 Skin care products ACSI .92 .19 NPS .22

Conclusions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Dr Robert East: Net Promoter Score - is there a better alternative?

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Dr Robert East: Net Promoter Score - is there a better alternative?