Scott Manderson, Insight Analytics Director at DBM Consultants, has had 14 years experience in the market and social research industry as a statistician and research consultant.
Scott joined DBM Consultants in early 2015 where he is an advisor on sampling, weighting, analysis and survey design across a range of projects. He is particularly experienced in the areas of research design, customer experience, advocacy management and key driver analyses. His primary focus has always been in the Financial Services industry, including banking, superannuation, insurance and wealth management.
Scott has a Bachelor of Science (Mathematics/Statistics) (Honours – Applied Mathematics) and a Bachelor of Science (Honours – Statistics), both from La Trobe University. Prior to joining the market and social research industry he lectured in statistics and mathematics at La Trobe University and La Trobe University International College.
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.