- NPS does not capture the overall customer experience.
- Businesses must decide the objectives and application of NPS alongside other metrics.
- When NPS is used alongside other metrics, quick fixes in customer experience are revealed.
As customers often interact with an organisation through various channels, Net Promoter Score (NPS) alone is not sufficient to accurately capture customer experience. More accurate insights are generated when NPS is used alongside the customer lifecycle and other measurements, and when the organisation follows up with customers who give a low score to find out what exactly goes wrong. Such follow up usually reveals customer hotspots, and enables the organisation to prioritise what should be fixed first.
Customer-related measurements such as Net Promoter Score (NPS), Customer Effort Score (CES) and Customer Satisfaction Index (CSI) have gained popularity across sectors. They help organisations understand and “fix” customer issues and concerns. While these measurements do improve customer transactions, they do not reveal much about the underlying issues that affect customer experience.
NPS has grown in popularity
Over the last decade, NPS has gained prominence in organisations as the measurement of customer satisfaction. In sectors such as telecoms, energy and insurance, NPS has become the standard against which companies measure themselves and benchmark others. Many organisations have incorporated NPS in their internal performance and reward systems.
Experience is more than a transaction
NPS measures a customer’s response to a single question, usually after completing a transaction with the organisation. It immediately reveals what goes wrong in the transaction that makes the customer unsatisfied.
In some organisations, NPS is elevated to being a measurement of customer experience. It is problematic because customers experience an organisation across multiple interactions and touchpoints, not just over a single transaction. Therefore, it is crucial to also employ other customer measurements alongside NPS in order to gain more accurate customer insights.
Follow up with unsatisfied customers
Multiple touchpoints render NPS less informative
Lose sight of the overall
Relate NPS to the customer lifecycle
More rigor is needed
If the product or service is complex, at least from the customer perspective, the use of NPS requires more rigor. Businesses must decide the purpose, objectives and application of NPS, and complement it with other qualitative and quantitative measurements. The real value lies in mapping all these input into an overarching customer lifecycle.