December 2, 2013
In today’s ultra-competitive business environment, accurately measuring both positive and negative word of mouth is a crucial element in gauging customer loyalty and recommendations. However, in my experience (and that includes us undertaking more than 100 million customer satisfaction surveys), the most popular tool for obtaining this measurement, the Net Promoter Score (NPS), has now outlived its usefulness as a metric.
I talk about the restrictions and limitations of NPS and also the ForeSee Word of Mouth Index (WoMI) a lot in my latest book: “Innovating Analytics”, but importantly the focus is firmly where it should be for all customer-centric organisations – on innovation.
The classic definition of innovation is introducing something new, but from a practical business perspective the word ‘innovation’ has come to mean something more than that. Innovation is about change that is significant and positive, creating a new dimension of performance. . . Read the full article »