Improving service quality through customer feedback – the case of NPS in IBM’s training services

Abstract

PurposeThe paper extends the discussion on the merit of using a net promoter score (NPS) to enhance the service design of organisations and to facilitate quality monitoring and improvement. NPS is a basic measure to assess the likelihood of a customer recommending an organisation to somebody else. This paper aims to show that this metric can be effective in monitoring and improving the quality of workplace training.Design/methodology/approachInvestigating the merit of using NPS to improve organisational training involved a longitudinal study of training provided by IBM. Data is analysed using panel regression and partial correlation methods. Workplace training delivery is the unit of analysis in which an NPS and conventional customer satisfaction score evaluations were conducted at the end of the delivery. The efficacy of these measures to improve quality are compared and insights derived from analysing NPS are investigated.FindingsThe findings indicate that, although NPS is not necessarily related to the results or success of a business, from a corporate perspective it can provide a solid basis from which to make business decisions that benefit a company. The authors found that NPS was associated with improved satisfaction with training, although significant regional variations were observed. Building on the data, a service business model is proposed advocating NPS as a tool for continuous improvement.Practical implicationsThe contribution to practice includes a clearer understanding of NPS as a quality and service improvement indicator and also as a driver for a service business design. In addition, it is indicated that enterprises operating in multiple regions should consider regional variations in NPS.Originality/valueBy analysis of IBM’s training data, the authors gain an understanding of an industry in which quality and the use of NPS has not been extensively studied. The data also offers a rich dimension in the examination of the factors that should be considered to effectively implement an NPS service improvement plan.