Forbes: Why NPS Should Not Be Your Only Customer Experience Metric
It can be challenging to meaningfully measure customer experience (CX) in any organization. Several metrics have been touted as good ways to see the effects of CX and its impact on customer satisfaction, loyalty and recommendations.
One of these metrics is Net Promoter Score, often referred to as NPS. While it has been touted by some as a singular metric to determine if your customer experience initiatives are successful, it has some significant shortcomings if it is the only measurement used, as some experts are casting doubt on using this statistic without caveats. In this article, I’ll explore why NPS should not be the only method of measurement for CX.
What is NPS?
NPS was developed and trademarked by Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld in 2003. The score is based on the question: “What is the likelihood that you would recommend Company X to a friend or colleague?” rated on a 0-10 scale.
Respondents are broken into three groups:
Promoters, or those who answered 9 or 10.
Passives, or those who answered 7 or 8.
Detractors, or those who answered 0 through 6.
To calculate, you subtract the number of detractors from the number of promoters and divide it by the total number of respondents times 100. It’s as simple as that, and therein lies some of the issues with using Net Promoter Score as your major method of measuring customer experience.