My NetPromoter Problem
I'm going to do something somewhat sacriligeous. I'm going to take issue with part of the NetPromoter concept, which is the subject of this week's Inside 1to1 story. Yes, I think the concept is full of simple brilliance. And as I write this I'm wearing my Fred Reichheld Fan Club t-shirt. But here's my problem. Reichheld, as well as the folks at Satmetrix who have cornered the consulting market on NPS, are touting the index as part of the way marketing managers and executives should be compensated.
For example, if my NPS is 6.5 on Jan. 1, 2006, my bonus could be based on how far that index moves north when it comes time to tally up all the revenue and other performance indicators on Dec. 31, 2006. Looks good on paper. But customer-based satisfaction scores and loyalty performance indicators have too many drivers and too many variables to be an effective employee reward system. For example, I don't think the marketing executives at Dell should take a hit for the accounting problems that have caused bad publicity and therefore could negatively impact NPS. Team responsibility for the willingness to recommend a company's products is an innovative concept. It certainly has sparked a lot of debate. But if it was my bonus check, I'm not sure I'd like it.
