Tesco Woes Predicted by NPS as Early as 2011

Back in 2011 Tesco was still riding high with over 31% market share but even at that stage it was the only one of the big 4 supermarkets to have a negative NPS value. Moreover, the 2011 NPS scores for each of the top 4, as measured at the time by research company PRmoment.com, proved to be a very reliable to their long term market share performance, as can be seen below.

The problem with NPS, however, it that it is does not, of itself, tell you what the problem is. For that you need underlying diagnostics. In Tesco’s case we can find such evidence in the general YouGov tracking study, BrandIndex™. As can be seen in the chart below, the tracker showed how perceptions of value had been falling like a stone throughout the whole of 2011 and by 2012 Tesco was being rated the worst of all the major supermarkets.

Tracking your NPS but only having individual customer feedback to help diagnose what the big issues are means that companies can fail to get the big picture and take the right strategic steps to correct the problems.

That is where RedRoute’s AIME Tracker gives companies a vital edge. It tracks the 5 key aspects that determine whether customer prefer your service to the competition. Its overall metric, Effective Net Preference (ENP), not only explains movements on NPS but also predicts them. So you know what the causes of your low NPS are, whether it makes a difference to your sales, and in what direction it is likely to move in the future. It is based on the five dimensions shown below:

More colloquially, these five dimensions can be thought of being customer perception of whether your offer provides:

– The Right Solution from
– The Right Brand for
– The Right Effort for
– The Right Value in
– The Right Way

To find out more, come along the Customer Experience Summit in London on October 15th and 16th and see how our analysis of the Tesco situation and how you can avoid similar problems when using managing your NPS programme.

Steve Messenger
Director
RedRoute International Ltd