Email: info@marketeye.co.nz

Hamilton: 07 854 1008

Auckland: 09 521 5122

Australia: 1800 149 035

The Market-Eye '1.75' and the Net Promoter Score (NPS)

Market-Eye has considerable experience using the Net Promoter Score, a potential indicator of relationships existing between an organisation and clients that may have an impact on future earnings. Market-Eye uses the 'score' in client reviews as one of a number of indicators - NOT the only indicator.

We have identified a number of concerns associated with using the NPS including:

  • Is the NPS measuring a transaction versus measuring the total relationship
  • Operationally an organisation may excel but the NPS is lower than expected
  • Without comparing with competitors the score may be of limited positioning value
  • A low rating may not necessarily indicate a detractor (rating 6 or below on the 10 point scale)
  • The positioning of the question in a review can alter the actual score
  • Results are industry specific therefore generalisations are dangerous, the score is more useful for tracking

To overcome the inadequacies of the NPS we have developed processes to support NPS ratings to make the resultant information more meaningful (we find what factors are actually impacting on the 'score').

The main ways we extend the value of the NPS is the use of qualitative support information and the extensive use of the Market-Eye developed '1.75' scale - we have found a direct correlation between a high NPS score and all ratings falling below the Market-Eye developed  individual attribute scale. The scale we use is based on 1 being considered 'excellent', through to 5 'very poor' then applying statistical techniques to arrive at a score, This identifies factors negatively or positively impacting on the overall score.