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Remember When Net Promoter was Formerly Known as Willingness to Recommend?

NPS, otherwise known as Net Promoter and formerly known (sort of like Prince) as a behavioral intent question measuring willingness to recommend is a fairly polarizing concept.  There are died in the wool proponents and an equally sizeable group of detractors.  From our standpoint, the conceptual goal of a simple to understand metric that serves as an internal rallying cry for the importance of customer experience/service is great.  Where NPS goes astray is claiming to be more than this when just being this was a worthwhile achievement.  This is because the technical and methodological crit

The Three Must Have's for a Firm KPI Metric.

Firms spend a lot of time tracking stuff (or metrics in business lingo).  Many of these metrics are direct indicators of a firm's financial health (e.g. cash flow, sales.) while others are proxies for it - e.g.

Man Bites Dog - The Problem with Customer Satisfaction Programs are the Very Satisfied

How is this for man bites dog?  The problem with customer satisfaction is the Very Satisfied. This seemingly ridiculous claim becomes more credible if you consider,

Banner as Brand

Its the banner stupid. I know, a tired turn of phrase but it is apt. Speaking of tired, much has been written about the uptick in grocery store brand share. Similarly, there is no shortage of words on how this economic maelstrom might signal a fundamental shift in consumer psyche and behavior towards value, sustainability and less materialism.

Full Service Market Research Pricing is Crazy

Odd statement from a full service market research firm but we’re hoping there is some truth to the “truth shall set you free” adage.

I don’t know if this will be received as stating the obvious or revelation but most pricing by most firms is based on direct costs, otherwise known as cost plus accounting. This pricing method benefits from simplicity and ease of calculation but it does nothing to align the supplier’s interests with that of the end client – ironic since most full service firms like to position themselves as “partners”.

Twitter Coming of Age

Very interesting article in AdAge, http://adage.com/digitalnext/article?article_id=133509, on how Twitter was used to capture online chatter (exercising my civil disobedience against the “buzz” term) during the launch of a CPG product. For those wondering about Twitter, it is a communications platform initially established by posing a very simple question to would be Twitter users, “What are you doing?”. However, it is no longer simply a repository of daily, mundane exchanges among groups of people (though plenty of this exists).

Automotive brand dealerships can make or break a brand

The US automotive industry is in pain; sales are down and the prospects of a return to growth are bleak in the near term. Cost cutting is necessarily on the minds of all brands now, even those who are holding up well in the current down turn and every program, and expense is under scrutiny.  In this context it’s important to understand that the last place to cut is in customer service standards – do it and you risk more than merely a dissatisfied customer, you risk damaging your brand’s long term health.

Keeping the US car industry on the road

The financial predicament faced by the Big 3 US auto makers is by now well known and while it seems that the government and every media pundit has a view very little of the chatter has been driven by data; opinions abound but insight is rare.

There are, of course, substantial structural costs that are not easy for GM, Ford and Chrysler to break free of, (pensions, health care, and other current costs of past union agreements), but one step in the gift of each company is cost reduction through the rationalization of their brand portfolios.

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