Net Promoter Score | Cypress Semiconductor
Net Promoter Score
August 26, 2010
At Cypress we are starting to use a technique called “Net Promoter Score” (NPS) to determine the quality of our customer service.
The Net Promoter Score (NPS) is obtained by asking customers a single question on a 0 to 10 rating scale:
“How likely is it that you would recommend our company to a friend or colleague?”
Based on their responses, customers are categorized into one of three groups:
· Promoters (9-10)
· Passives (7-8)
· Detractors (0-6)
The percentage of detractors is then subtracted from the percentage of promoters to obtain the NPS.
Finally we have a tool to measure the quality of our customer service. Another tool has been the American Customer Satisfaction Index, developed by Claes Fornell at the University of Michigan. It is a zero to 100 percent metric. The problem is that a good score is 85 and a bad score is only 65. Frankly using this to measure your quality motivates a company to strive for a good “Gentleman’s C” when it come to service. While the NPS give credit for A’s and takes credit away for C’s, D’s, or F’s. B’s don’t count. It causes companies to act as if they are going for a scholarship. Frankly it causes companies to stop acting like entitled trust fund babies.
Back in the late 70s the quality of products built in the United States was extremely poor and competition from the Japanese quickly made American companies realize that they would have to improve or die. I can remember my father buying a new car and when we went to pick it up he was given a small notebook and an appointment was made to bring the car back in two weeks so they could fix all the problems we found. Clearly that kind of behavior is now not acceptable. I can remember buying op amps in the 70s with an acceptable failure rate of 2%.
The tool that allowed companies to measure their manufacturing quality was “Statistical Quality Control”. It was developed by Dr Edward Deming as the result of his work in World War II on statistical destructive testing. (How do you measure the quality of tank shields or bombs?)
Now Deming’s methods didn’t tell you what was wrong. It just showed you that you had a quality problem. It allowed you to figure out what was wrong and prove your theory. It was slow to take off of the United Sated because 85% of manufacturing problems were with management. No one likes to be told that they are dumb or their baby is ugly, but it is dumb ugly babies that cause our problems. This was something GM was not interested when they were at their peak.
The Net Promoter Score is also a tool that will allow companies to measure their customer service, but it also will not tell you what is wrong. That takes data collection and experiments. You know you got it right when the babies get smart and pretty.
Part of NPS is customer surveys. We will ask if you are willing to be interviewed on the phone. Please say yes. This is how we get a more detailed clearer picture.
As an old servo designer I believe that negative feedback is needed for a stable solution and multiple feedback is need for an optimum solution. I am willing to be such a feedback path. I have been told I have a healthy disrespect for management and I don’t have a problem telling them we have some dumb ugly babies. E-mail if you wish. I can’t promise anything but it will be another feedback path.
I will end with a quote for Bob Garfield, columnist for Advertising Age
“Customer service and customer relationship management is going to be so critical to all corporate futures. Marketing, as we have known it, is all about customer relations in the future. I mean, forget advertising. It is over. We are seeing the last dregs of advertising being the prime marketing tool. It is going to be all about cultivating, exploiting, and collaborating with customers. And you can’t do that if they hate you.”