Probing NPSs

In the above example we looked at the scores of 20 Clients across the business. Let us suppose that we want to establish which sectors are yielding the best NPSs. In Table 4.11 the same 20 Clients have now been coded into four sectors, coded a to d. It is interesting to look at each sector's NPS.

Table 4.11 Net Promoter Scores with Sector Codes Added to Clients for Further Analysis

CALCULATING THE SECTOR NPS

In Table 4.1 I:

• For sector (a) we have a Promoter score of 20%, a Passive score of 80% and a Detractor score of 0%, so the NPS is 20%.

• For sector (b), we have a Promoter score of 100%, a Passive score of 0% and no Detractors, so the NPS is 100%.

• For sector (c) we have a Promoter score of 0%, a Passive score of 0 and a Detractor score of 100%. The NPS is -100%.

• For sector (d) we have a Promoter score of 75%, a Passive score of 25% and no Detractors. The NPS is 75%.

This analysis has enabled us to put the sectors in order of NPS; clearly sector (b) is the highest performer at 100% and sector (c) has serious problems that require immediate attention.

Another cut at the analysis can be effected by line of service, or by geographical location such as a sales office or even down to the lead partner; again this may reveal areas of high and low NPS for review. By drilling down into these subsets, it is possible to assign appropriate resources to take action.

Hewlett Packard's Senior Vice President of Customer Support & Services stated in the report 2020 - Return on Service* that the company has moved from using delight metrics to track approval ratings to the NPS as its dominant Customer satisfaction metric.

HEWLETT PACKARD RAISES THE BAR WITH NET PROMOTER SCORE^[1]

Customer service metrics are central to HP's service strategy. Richard Bailey, Senior Vice President of Customer Support & Services, says the IT group has long used delight metrics to track its approval ratings with Customers, but in 2013 it moved to using Net Promoter Score (NPS), which has become its dominant Customer satisfaction metric. 'Over the last few years we have enhanced the way we measure Customer satisfaction. In doing so, we are able to engage with our Customers during each aspect of their relationship with us, whether they are in-warranty or out-of warranty' Mr Bailey says. HP chose NPS for two reasons, he says:'NPS is probably the highest bar you can set in terms of the tool set. And it's more than just looking at one Customer Touch Point - it requires you to be more inclusive and makes sure you are delivering a great Customer experience throughout the organisation: from marketing to support and services.'

Characteristics of Loyal Clients

So how does a Client move from being satisfied to become loyal? As discussed earlier, we can map the 'life cycle' of a Client. This cycle begins with a Client as a 'prospect', moves into the first purchase stage to become a Client, then on to repeat purchase. At this time the Client may be sufficiently satisfied that they will provide additional assignments. Over time, as trust between the Client and the supplier develops, the Client may agree to provide the occasional reference. This is a movement towards loyalty. Perhaps the Client then agrees to a case study which is published on the supplier's website. This situation can develop whereby the Client is willing to show their loyalty publicly, for example, being prepared to talk about a case study presented at a seminar or conference. When a Client freely recommends your firm in this way, it is clearly a demonstration of their advocacy.

Other examples of advocates are Clients who agree to be filmed in an interview about their business, recommending how your services overcame some of their challenges. These case studies provide excellent material for developing employee understanding about Clients. Some firms measure the amount of Client referral business they receive and set an internal target for future referrals.

• [1] From the report 'Service 2020 - Return on Service', published by BDO and written by the Economist Intelligence Unit, 2014.