More and more organisations are using NPS as a KPI, many linking it to reward and recognition. Many are having a great deal of difficulty reconciling volatility in the metric and its frequent lack of alignment with other KPIs, and are hitting a brick wall when it comes to precisely defining what it takes to move the needle.
Our research shows that one cause of extraordinary NPS volatility is the systemic bias caused by those unwilling to recommend due to either having a specific barrier to recommending, or just not being engaged enough in the category of interest to recommend.
Left unchecked in a tracker, changes in the absolute proportion of the ‘non-recommending’ group can cause large swings in NPS – as those unwilling to recommend tend to have an NPS of 80 pts lower than those open, in principle, to advocating.
This not only raises questions as to the validity of the metric, but also makes it impossible to unpack movements and explain them back to the business.
If you’re having trouble managing stakeholder expectations of NPS, at a loss as to why it fluctuates so much, and on a collision course because of inability to drive it upward, we’d love to help.
Nature is a 10 year old agency based in Melbourne. With a strong boutique ethos and working style, our guiding beliefs and principles are about putting our clients first and adapting around their needs, delivering on our promises, working collaboratively to produce great results, and fuelling excellence through passion, curiosity and inquiring minds.