An enormous amount of research has been done at ForeSee to improve the accuracy and precision of word-of-mouth measurements otherwise known as Net Promoter Score (NPS). The more than two years of research and analysis has led to the development of the Word of Mouth Index (WoMI).
While NPS measures only “likely to recommend,” WoMI measures both the likelihood to recommend and “likelihood to discourage,” giving executives a more precise and accurate measurement to better understand the customer experience with and to make better business decisions as a result.
There are a number of ways that the information from what we call “the discourage question” could be used with NPS to build a single metric—ideally, a full system of metrics that supports good decision making about all of the variation in data collected with scaled questions – much like ForeSee’s predictive models. However, to maintain Net Promoter’s simplicity and meet the needs of executives to track one number, we adjusted NPS using the data from the new question while keeping the original NPS question intact. Individuals observing and tracking NPS could look at it as a modified score that more accurately reflects the full range of potential word-of-mouth behavior.
If your organization already uses NPS, WoMI builds on what you’ve already been doing and doesn’t require you to stop using NPS. It just requires that you add one additional question and calculation. The following recommended best practices have been developed as a result of our research and will help your company achieve optimal results.
- Use the recommend question to measure positive word of mouth at the company or brand level.
The likelihood to recommend question is a very good question to measure and understand positive word of mouth. By keeping this question consistent as you evolve from NPS to WoMI, you will receive the benefit of continuing the trends and leveraging your historical data. Having the question focused on the company or brand level as the source of the recommendation provides the highest level of analysis and the same object as the discourage question.
- Use the discourage question to measure negative word of mouth at your company or your brand level in order to reflect the full range of word-of-mouth behavior.
By measuring NPS only, you risk excluding an important facet of word-of-mouth behavior. With the discourage question, you are able to identify the potential true detractors to your business.
- Measure the discourage question toward the end of the survey to minimize the effects of survey straight lining/measurement error.
- Use the WoMI score as part of your system of metrics to understand the potential impact of both positive word of mouth and negative word of mouth on your business. With a measurement of positive word of mouth (true promoters) and negative word of mouth (true detractors), you will have a much deeper understanding of the value of word of mouth.
- If you are using NPS, you can complement it with the more accurate and precise WoMI. Since WoMI still involves asking the same recommend question, you can run WoMI and NPS in parallel to better understand the differences.
The benefits of using these best practices are clear. The goal in any measurement system is to get the appropriate level of accuracy and precision so you can measure with confidence. You also want to utilize those measurements so you can take action when necessary.Categories: ForeSee Products