In the spirit of transparency, we are continuing to refine a scale to determine your retirement income style. I thought it would be a good idea to share with all of you some of the feedback we have received from the RISA™’s release in early 2020.
Overall, the initial response has been really promising. There is a quote from Reid Hoffman (LinkedIn founder) that goes something like this…. “If you are not embarrassed by the first version of your product, you’ve launched too late.”
While we realize there are areas we can tighten up, your initial impressions were very, very favorable. We conducted what is known as a Net Promoter Score (NPS) to analyze what you thought of the RISA™. The NPS scale is frequently used to measure customer loyalty.
In the NPS we administered, our participants were asked on a scale from 1-10, “How likely is it that that you would recommend the RISA™ to a friend?”
The scoring is as follows in the image below.
You take the percent of respondents that answered 9 & 10 and subtract it form the percent of respondents that answered 1-6. Individuals answering 7 or 8 are ignored. Tough scale, right?
A score above “0” is considered good, and a score above “30” is considered great.
Our NPS score for the RISA™ is twenty-five (25)! I assume this puts us solidly in the “very good” range and I am thrilled with this score. The distribution of our scores is shown below.
As a side note, we had close to 500 RISA™ takers in 2020 so far. Unfortunately, I mistakenly delayed releasing the NPS survey for a few days, and I am sure that my tardiness hurt our response rate. All in all, I am pleased with our sample of two-hundred and twenty-four (224).
In addition to the RISA’s™ NPS score, I am also very happy with the distribution of our scores.
Eighty-four percent (84%) answered a 7-10 while only sixteen percent (16%) answered between 1-6. The weighted average was eight (8).
We will continue to share our responses from the other questions that we asked in our follow up survey to the RISA™. For example, we asked questions related to whether the respondents thought that the RISA™ was accurate, what next steps they would like to see as part of our recommendations, and whether they feel the RISA™ is a good tool to share with financial professionals.
Thank you, and stay tuned!
Next, read Retirement Income Style Awareness (RISA™) and Its Accuracy.