Dr. Russell Blamey

Dr. Russell Blamey
  • Title: Senior Director, Insight Analytics
  • Company: DBM Consultants

ABOUT RUSSELL

Russell Blamey, DBM’s Head of Insight Analytics, has had more than 20 years experience in the market and social research industry.

Russell is a specialist in advanced quantitative methods and has delivered papers and workshops at conferences in Australia and overseas. He has published widely in academic journals.

Russell has been engaged by many of the large Australian corporations, major government departments and several global firms. His particular interests are in stated preference methods including choice modelling, market segmentation, pricing, predictive modelling, driver analysis, and customer experience including KPI analytics.

He is a Qualified Practicing Researcher (QPR) and has a PhD in stated preference surveys from the ANU.  Prior to joining DBM sixteen years ago, Russell was Director of Consumer Research at the Commonwealth Department of Health.  He has also worked as an academic at the ANU and UNSW.

PRESENTATION: NET PROMOTER SCORE- LEAD INDICATOR OF BUSINESS OUTCOMES

Co-presenters: Dhruba Gupta & Scott Manderson

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.

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