If you can’t measure any return on what you are spending on your NPS program and the people who run it, I suggest putting the money into lottery tickets.
Establishing a measurement of the return on what you are spending to manage an NPS program need not be difficult:
Let’s say you spend $50,000 a year on data collection and reporting, plus a person to run the program at $85,000 a year, all in, with benefits. What percent reduction in churn would you need to cover the $135,000? Could that reduction be associated with learning/actions from the NPS program?
Can’t measure churn?….What amount of up- sale of a product or service would be required to produce $135K in annual profits to cover the program?
Can’t measure NPS program associated sales?…..How many referrals or testimonials would you need to get from Promoters to satisfy your expenditure on the program?
If the NPS program helped save just one customer from bad mouthing you and turning off a potential new client, what would that be worth?
If you learned something from the NPS program that could be the basis for a White Paper…a “Thought Leadership” piece you could publish to your customers, what would that be worth?
The important thing is to establish some kind of ROI premise and make your NPS program manager responsible for it…or else:
Accenture recently surveyed approximately 1,500 B2B executives in 13 countries and found that:
- 85% recognized the importance of customer experience to their overall revenue strategy
- 76% felt they were wasting more than half their investments on ineffective initiatives.
- More than 50% of these companies reported that their efforts had little or no positive affect on customer retention