Innovating Analytics: How the Next Generation of Net Promoter Can Increase Sales and Drive Business Results

Praise for Innovating Analytics "Innovating analytics is critical in baseball, in politics, and in business. Larry Freed is at the forefront of developing useful new metrics that will help businesses succeed." —BILLY BEANE , General Manager, Oakland Athletics, and the subject of the bestseller Moneyball "Challenging conventional wisdom and building upon the wealth of knowledge derived from one of the most widely used customer experience measurement tools in business today, Innovating Analytics is an essential addition to any marketer′s library. Clearly, Larry Freed is one of the leading minds in the customer experience industry, as he thoughtfully offers tested and practical strategies that businesses can implement immediately." —BRUCE ROGERS , Chief Insights Officer, Forbes Media " Innovating Analytics is a natural extension of Larry′s career–long exploration of innovative business solutions." —THOMAS H. ZURBUCHEN , Associate Dean of Entrepreneurial Programs, University of Michigan "Larry Freed and ForeSee are at the forefront of transforming business around the world with actionable, predictive metrics. Innovating Analytics contains critical information for any executive who wants to improve business outcomes." —RICK SNYDER , Governor of the State of Michigan " Innovating Analytics is a compelling exploration of the potential power of customer experience metrics in the modern age. Larry Freed′s combination of academic research with practical business implementation makes this book a must–read for any business leader." —MARK MAHANEY , Managing Director, RBC Capital Markets "Too many businesses are relying on metrics that are outdated and have no relationship to company growth and profit. Innovating Analytics is a must–read for any executive about the power of good metrics and the dangers of bad ones." —CLAES FORNELL , founder and Chairman, ACSI, and author of The Satisfied Customer "In his new book, Larry Freed draws on his years of expertise to wisely urge business leaders to challenge the status quo when it comes to measuring and understanding the customer experience." —ROBERT APATOFF , President, FTD Group, Inc.

Introduction 1 1 Customer Experience 2.0 5 2 NPS—What It Is and What It Does Well 15 3 NPS—Fundamentally Flawed 21 4 WoMI—The Next Generation of NPS 33 5 The Four Drivers of Business Success 53 6 Why the Customer Experience Matters 73 7 The Customer Experience Measurement Ecosystem 97 8 Best Customer Experience Practices 123 9 Big Data and the Future of Analytics 157 Afterword: Measuring Customer Experience—A Broader Impact and the Start of a Journey 171 Appendix A: Satisfaction, WoMI, Net Promoter, and Overstatement of Detractors for Top Companies 173 Appendix B: Are Those Least Likely to Recommend Actually the Most Likely to Discourage? 201 Appendix C: Eleven Common Measurement Mistakes 207 Appendix D: An Overview of Measurement and Model Analysis Methods 221 Acknowledgments 273 Index 275

LARRY FREED is the President and CEO of ForeSee, a customer experience analytics firm that measures satisfaction and delivers powerful insights on where to prioritize improvements for maximum impact. An expert on customer satisfaction across all touchpoints and at the brand level, Larry speaks extensively on the topic at private and public sector industry events and has been quoted in numerous publications and media, including CNN, the Wall Street Journal , the Washington Post , and Investor's Business Daily , among many others. Larry is also the author of Managing Forward, published in 2011.