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Interview: Comparing NPS and WoMI from a Company’s Perspective

The following is an interview with Jason Faria, Director of Customer Service at ideeli, about his experiences using both the Net Promoter Score (NPS) and the ForeSee Word of Mouth Index (WoMI).How Ideeli uses WoMI to improve NPS

Ideeli has been using NPS to measure data on all of our call center and post-purchase experiences since August 2010. We decided to utilize NPS based on our executives’ use of Net Promoter at previous organizations. And since ideeli was a small startup at the time, NPS seemed like the easiest and quickest option for an effective in-house approach.

In our call center, we allocated resources to NPS to try and better understand the expectations we were setting for our members, and how to manage those expectations more effectively. We segmented out our top buyers and measured their scores separately: If we saw directional changes, we tried to hypothesize what was driving those directional shifts. But as time passed, we found that we were having to hypothesize more than we should: NPS was too simple and couldn’t meet our needs. It only provided two options—to either maintain as-is or to change something, but it never told us what to maintain or what to change. That lack of direction caused us to unnecessarily adjust things that had been performing well.

But since implementing WoMI, we have completely changed how we think about word of mouth and its measurement, because WoMI clearly and accurately defines what action must be taken. WoMI eliminates overstated detractors, and has allowed us to concentrate our efforts on areas where we will get the greatest return.

We plan on using WoMI internally as an educational tool for managers and employees across our business silos.  WoMI will serve as a strategic starting point for us to finesse how we can best leverage the details of true detractors, while also giving us the ability to benchmark against our competitors and ourselves over time.

The biggest difference between WoMI and NPS: the post-purchase data and the call center data from WoMI is much more clear. WoMI accurately shows us how our brand is holding up, on both web and mobile platforms, in a way NPS didn’t.

–Jason Faria, Director of Customer Service, ideeli

Ideeli is a flash sale online retailer based in New York City. It acquires excess or sample merchandise and sells it quickly at very steep discounts to their members. Sales typically last less than 48 hours. Founded in 2006, its $77M in revenue in 2010 led Inc. magazine to rank ideeli as the fastest growing company in the United States for 2011. It has raised $70M in venture capital funding.

 

Net Promoter, Net Promoter Score and NPS are trademarks of Satmetrix Systems, Inc., Bain & Company, Inc. and Fred Reichheld. ForeSee is not affiliated with Net Promoter or Satmetrix Systems (and/or Fred Reichheld or Bain & Company) or any of its subsidiaries or affiliates. Furthermore ForeSee is not associated with, licensed by, endorsed by, or funded by Satmetrix Systems (and/or Fred Reichheld or Bain & Company), and no effort has been made to falsely suggest a connection with any of those entities or the products/services offered by Satmetrix Systems (and/or Fred Reichheld or Bain & Company).



About the Author

As a pioneer in customer experience analytics, ForeSee delivers superior technology and proven methodology to connect the customer experience to the bottom line. The result is better business for companies and a better experience for consumers.

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