We’ve all heard about Net Promotor Score or NPS. It’s the famous scorecard where your NPS is the percentage of promoters, people who choose a rating of 9 or 10, minus the percentage of detractors, people who choose a rating of 0 to 6 on their willingness to recommend your brand or business to their family and friends. Scores can range from -100 to +100 and brands strive for scores greater than 0 and, more specifically, greater than 50.
What we love about NPS
- The NPS is one, simple to calculate number that can be used to interpret and track success across many different businesses and categories.
- It’s based on ‘willingness to recommend.’ For many businesses, this measure is a good predictor of brand health. It takes into account more than just satisfaction with the last memorable experience and also incorporates the emotional connection to a brand, something that is influenced by both offline and online advertising as well as long term familiarity with a brand.
What we don’t love about NPS
- As a single number, the NPS obscures deeper insights. For example, people who feel ‘meh’ about a brand are considered to be the same as people who vehemently abhor that brand. Clearly, those people are reflecting on very different customer experiences and brands can’t treat them the same. Used alone as simply the Net Promoter Score rather than as one component of a broader Net Promoter System means that many aspects of the customer experience are ignored.
- For some businesses, there are better measures of brand health. In our segmentation studies, we often include a variety of measures so we can assess which will work best as the one to strive towards. This allows us to discover which metrics are most predictive of spend or frequency in a given category. Sometimes NPS is not the most predictive measure. For example, in grocery, consumers might regularly shop at four or more retailers in a given month. And they would recommend all of them. So a better measure, such as ‘first choice for…insert category’ or ‘store I love’ might better predict brand health for this category. In other categories, recommending a brand just feels weird. Recently, I was asked to rate Enbridge Gas in comparison to other options. Given that your gas company isn’t something people think about very often, it felt awkward to consider recommending them.
A mentor of mine once said, “What gets measured, gets done.” I cannot agree more. Measurement IS important. But the more important part of the equation is getting things done. We love working with our clients to design the optimal customer experience – one that aligns with their brand purpose and differentiates their brand from the competition. There are many ‘new age’ software systems that put the insights into the hands of all employees and enable teams to follow up proactively and reactively to drive CX improvements. We’d be delighted to talk to you about optimizing and measuring your customer experience. Please get in touch with us!