A colleague forwarded me two emails he recently received — one from Marriott, the other from Capital One. The common thread: Both firms asked (and incented) him to refer his friends and family to those firms.
Seems common and simple enough, no? Yet, when you think about it, both firms are bucking the trend.
While there are (seemingly) throngs of Net Promoter Syndrome sufferers out there spending buckets of money to collect, analyze, and disseminate data about their customers’ intentions, along come two smart marketers trying to influence (and presumably measure) actual customer behavior.
What makes this approach so much superior to the NPS methodology? It:
- Is simple (“how many referred us?) — not like a 10-point scale
- Can be measured in real-time — or, at least, more often than surveys
- Can impact all customers — not just a sample
- Drives (and measures) behavior — not intentions
and the absolutely best reason….
- Directly impacts the bottom line — not indirectly, through correlation
Measuring NPS is a huge waste of money. Why ask customers about their likelihood to refer, when you could be asking them to refer?
And I’d like to thank my colleague, who knew I’d find this blogworthy. Unless, of course, he was hoping that I’d apply for another credit card.