Primer on NPS®

Contemplating adopting the entire system or a part of it? Lay down a solid education program covering the concepts in this primer to give the program a fighting chance.

Frederick F. Reichheld, a Boston-based author and director emeritus at Bain & Company, conducted research for two years culminating in the 2003 Harvard Business Review paper The One Number You Need to Grow Frederick F. Reichheld 12/03. “The objective was to “link[ed] survey responses with actual customer behavior — purchasing patterns and referrals — and ultimately with company growth.” The results were “clear yet counterintuitive” pointing to a certain process that predicts business performance from satisfaction.  

These insights led to the metric, Net Promoter Score®, evolving into the Net Promoter System® practice discussed in the best-selling follow-on book series The Ultimate Question… Continue reading “Primer on NPS®”

Media Mix Modeling

Neil Borden, professor of advertising at Harvard is said to have coined the term “marketing mix” first using it in his 1953 presidential address to the American Marketing Association.

Marketing sciences and big data provide us with a process known as Media Mix Modeling. These econometric based models intake and process large streams of data across time periods, called time series, then create patterns suitable for analysis. These models have many uses from explaining weather patterns to predicting the stock market. Like a set of mechanics tools, there are many econometric models optimized for specific applications. For marketing, the key application is evaluating previous spends and testing future plans with high levels of certainty.

The Problem

Driving thousands of inbound calls per day or a dozen diners to a restaurant, marketing Continue reading “Media Mix Modeling”