Beyond Net Promoter Scores

by Lilia Shirman on July 28, 2009

in Customer relationships

The highly popular Net Promoter Scoring (NPS) customer satisfaction measure (originally created by Bain & Co.) has gained broad adoption in the last five years.  Customers’ likelihood to recommend you to others is a great measure of their satisfaction and loyalty.  Unfortunately, Net Promoter Scoring limits visibility and can lead your customer satisfaction initiatives astray.

There are two key issues with traditional NPS:

1. It asks customers to predict their own behavior. The standard NPS question is, “Would you recommend us?”   Many companies have found that customers say they WOULD recommend, but over half of those that say they would, don’t.

2. A Net Promoter Score is not actionable alone. Simply knowing how much customers expect to recommend you doesn’t provide clues as to how to improve their loyalty and word of mouth.

Despite these drawbacks, the core concept of NPS is an important one:  Happy customers create new business.  The key to leveraging this concept is to tweak NPS to ask more actionable questions, and then incorporate it into a broader customer intelligence effort.

Read more in my recent Beyond NPS brief...

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