Brand lift (or change in brand opinion) and Net Promoter Score (NPS) (from survey data): compare your brand perceptions among attendees before and after the event to determine NPS, the change or “lift” provided by the engagement.
Both variables are useful for measuring the ROI of an event. While it is quite easy to use both measurements with a Data-Driven Event Planning platform, companies will tend to focus one or the other depending upon their goals.
NPS, for example is a metric that was created by consulting firm with an eye toward quantitative financial return. For bottom line metrics, NPS rules.
What NPS Does:
Net Promoter Score(NPS) aims to measure the loyalty that exists between a provider and a consumer. The Net Promoter Score is calculated based on responses to a single question: How likely is it that you would recommend our company/product/service to a friend or colleague? The scoring for this answer is most often based on a 0 to 10 scale
Those who respond with a score of 9 to 10 are called Promoters. Those who respond with a score of 0 to 6 are labeled Detractors. Responses of 7 and 8 are labeled Passives, and their behavior falls between Promoters and Detractors
The Net Promoter Score is calculated by subtracting the percentage of customers who are Detractors from the percentage of customers who are Promoters.
Why it Matters:
Proponents of the Net Promoter approach claim the score can be used to motivate an organization to become more focused on improving products and services for consumers.The Net Promoter approach has been adopted by several companies, including Australia Post,Siemens,E.ON,Philips,GE,Apple Retail,American Express,and Intuit.
It has also emerged as a way to measure loyalty for online applications, as well as social game products. and promotions run during events and tradeshows.
Where it Fails
NPS is so widely used during events these days that it is easy to overlook the specific benefits it provides, and more importantly, what it should not be used for.
Because this is a scored approach to learning, it can also be gamed to deliver results. For example, a consumer knows may simply go through the motions when filling out a score card. Or they might easily “spot the gist” of the questions and skew answers to achieve a desired outcome. While blind testing and other techniques can help to guard against it, this is the drawback of any “scored approach to consumer satisfaction.
For these reasons and others, NPS is therefore not the best technique for “deep learning” about customer motivations. It is also not the best metric for measuring brand awareness and other “softer” variables that can still provide valuable learnings about your event.
In our next post, we’ll “go to school” on brand lift.