For supply chain pros, success is measured in proportion to customer satisfaction. How customer satisfaction is measured varies from business to business. As Steve Banker relates in an article for Forbes, there’s a new supply chain measurement on the block, and it just may ‘take the cake.’
The New Metric on the Block
Banker travels often and attends many supply chain conferences where speeches about “perfect order metric,” “backorder as a percent of sales,” and “lost sales” methods have become habitual almost to the point of insignificance. That is why, when one speaker discussed something called the Net Promoter Score (NPS), Banker took note.
NPS: The Breakdown
NPS divides a company’s customers into the Promoters, Passives, and Detractors groups. Then it asks the question, How likely is it that you would recommend [company x] to a friend or colleague? This question tracks a customer’s response on a 10 point rating scale. 9s and 10s are the loyal enthusiasts (the Promoters), 7s and 8s are open to competitive offerings (Passives), and the 6 and below group are considered unhappy customers (Detractors).
To learn more about this supply chain metric and its significance, visit: http://www.forbes.com/sites/stevebanker/2014/12/16/new-customer-centric-supply-chain-metrics/