It’s a bold claim: Simply ask customers whether or not they’d recommend a product (or service) to others, and you’ll arrive at a metric which sums up the entire success of a company. So what is Net Promoter Score, and how should its measurement affect customer experience?
It’s a simple arithmetical calculation to arrive at the NPS for a given company, based on the numbers of “Promoters”, “Passives” and “Detractors” among those surveyed. And – as Jeff Sauro notes in this piece for the Measuring Usability website – that simplicity lies at the heart of its increasing popularity among businesses.
Furthermore, it’s effectively a direct representation of customer experience: “Do you enjoy this product (or service) enough that you’re willing to recommend it to others?”. This means that customer experience is suddenly underpinning the key metric that a company might use to measure its performance. After potentially years of battling to get customer experience on the radar of top management, it has landed there with a thump:
“Yes, revenue is the ultimate metric but revenue is both a lagging indicator and not necessarily a good indicator of future growth–especially when you’re pissing off customers to get short term revenue (think of the latest fee from your phone company, cable company or rental-car company). What’s more, you can’t do anything about last quarter’s numbers. If you have a reasonable proxy for measuring future growth and revenue then you might be able to improve next year’s revenue. In the processes you also will likely make your customers happier and more loyal!”
But NPS needs to be taken with a proverbial grain of salt, because its simplicity hides some flaws. In this piece, Jeff shares his thoughts about NPS and user experience issues.
Source: 10 Things To Know About Net Promoter Scores And The User Experience (Jeff Sauro)