Insights on Incentives has as its sole purpose the facilitation of thought and discussion on the subject of incentive compensation for banks and credit unions. Once a month NSS will be sending out an e-mail with one insight on the area of incentive compensation. The insights will come from our research, discussion with customers and finally, those of you who decide to offer an insight on this important sales management issue.
The “Recommend to a Friend” Metric
For retail banking the customer answer to “would you recommend us to a friend” is a key metric for customer satisfaction. In the February issue of USBanker, Rob Markey Jr., a partner at Bain & Company, calls this metric the number one measurement banks need to understand to grow their business.
Markey further defines the metric as the net promoter score which is the number of promoters minus the number of detractors. While he recognizes that promoters might not actually go around talking up their institution, it is a good indicator of their overall satisfaction. Their research suggests that there is a correlation between the net promoter score and the growth rate of branch deposits.
I agree and we believe that this metric should find its way to your Performance Dashboard. This is a great measure to be used as a gate in your incentive compensation program.
de Paula, Matthew. “Dispensing with the Data Dump To Achieve Customer Loyalty” USBanker, vol.115, no. 2 (February 2005): 24.
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