Dhruba Gupta, Managing Director of DBM Consultants, has had 35 years in the market research industry in Australia, Asia and Europe. Dhruba is the co-founder of DBM, established in 1992. It is now a leading, award-winning consultancy in Australia.
Dhruba is a specialist in quantitative methods and has delivered papers and workshops at conferences in Australia and overseas. His papers have appeared in the publications for The Research Society, ESOMAR and the Reserve Bank of Australia. Dhruba has been engaged by many of the large Australian corporations, major government departments and several global firms. His particular interests are in the SME sector, advocacy management, market segmentation, and pricing.
He was awarded the Fellowship of the Australian Market and Social Research Society, for his contribution to the industry. He has a Master’s degree in research methods from the University of Western Australia. He sits on the examiners board for the accreditation of QPR candidates.
PRESENTATION: NET PROMOTER SCORE- LEAD INDICATOR OF BUSINESS OUTCOMES
The Net Promoter Score (NPS) [Reichheld 2003] has become widely adopted as a key performance indicator [KPI] used by boards and senior managers.
The claim that NPS “is the best predictor of growth” has fuelled much interest among management, and substantial investment of resources. However, the validity of this claim has been subject to much debate. Attempts to confirm it through correlation of aggregate statistics, or time series analysis of tracking surveys are fraught with challenges. Longitudinal studies that follow individuals over time are better at determining causality but are difficult to design and execute.
This paper examines the fundamental issue of whether NPS predicts business outcomes and, if so, what is the monetary value of incremental improvements or declines in advocacy over time. We extract advocacy and behavioural data from DBM’s Atlas program that contains over 350,000 interviews, to undertake a longitudinal analysis among Australian retail banking customers.
This paper will help to dispel some of the myths around the validity of key metrics that are widely used to track business performance. It will provide our stakeholders with the right evidence to back investment decisions and allocate resources with greater confidence.