Applying NPS 3.0 in my own life
It’s been a month and a half since I left CaratLane. Since then, I have spent most of my time doing coffee meetings with people ( found some quiet places in Powai where the coffee is OK and resoanably priced )
Today I realised one interesting thing.
How NPS 3.0 applies to our own life.
First a quick primer on NPS 3.0. Essentially the creator of NPS – Fredrich Reicheld – came up with this new argument that that his original NPS methodology doesnt make sense at all. It’s been hacked to death. Businesses have become prisoners of the metric and forgotten about the real problem.
So Fredrich came with NPS 3.0. He argues that good customer experience leads to two things. High repeat rate and higher referrals. So instead of measuring customer experience ( which is being manipulated ) directly, start measuring repeat rates and referral rates as proxies for customer expereince. These two are much harder to hack. Although some bright minds have started finding ways around this.
Coming back to me.
I realised the following things.
That almost everybody in the coffee meeting says they loved it. They will thank you. They will send you a message later that it was awesome and they learnt so much. And they should do it again.
This is exactly like the original NPS. Most people are nice and give good feedback. They don’t want to offend. They are also influenced by the free coffee. So your coffee meeting expereince score will appear to be very high.
Some people actually come back. Just like repeat rate. I am not telling you what my repeat rate is by the way.
Some people then introduce you to others who also want to do the coffee meeting. Sometimes unknown people reach out to you. They say someone told them the coffee meeting was awesome and so they also want to do it.
This is the referral and word of mouth.
Just like a business, my repeat rate and referral rate tells me how. good the product and experience really is. They are like NPS 3.0
Just like a business, the repeat and referral rates are very different and lower than the standard NPS.
Just like a business, you shouldn’t get carried away by the standard NPS scores. You should focus on the repeat and referral rates. Essentially NPS 3.0
Just like a business, if you track your NPS 3.0. and use its insights, you should be able to improve the product and the experience.
Eventually it could lead to better coffee meetings.
And you also become a better and more interesting person.
