NPS indicator - is it worth using?

You can find content on the Internet that is not favorable towards the NPS indicator. Recently we came across a comment according to which the NPS is nonsense, a marketing invention backed by fake surveys, created by research companies without any real impact on business.

Of course, we disagree with this claim, but more about that below.

We work with both multinational corporations and young, still-growing businesses, but each of them declares customer focus as one of their core values. This is not surprising, since it is consumers who verify the profitability of companies' actions.

Why are there so many voices that depreciate the NPS indicator?

This could be due to various reasons, but according to our observations, the main reason is the fundamental inability to identify and act on the factors behind customer responses to questions.

Organizations that successfully use NPS ask additional in-depth questions in addition to a simple question, so they can understand the causal factors behind a given customer rating. This is essential to improving the brand experience. If your company aspires to join the ranks of world-class organizations that are constantly changing to improve the customer experience, first and foremost:

Collect in-depth data, in fact any feedback. Data should come from all consumers at all key points of contact with the brand. There should be enough of it to fairly represent each customer segment, and to be confident about the statistical significance of the data. This is one of the foundations for making quick, well-founded decisions at all levels.

Respond to the voices of the dissatisfied - this can be considered in the context of saving customers and as learning what to do to avoid frustrated buyers of products or services. It is important to address within the organization the reasons for customer dissatisfaction at every point of contact with the brand. By systematically analyzing the reasons, you can make a real impact on business success.

Ensure the availability of data - both in terms of broad communication within the organization as well as simple communication of the data and its conclusions. Every employee should understand what they can do to help improve the customer experience every day.

It is worth mentioning that on more than one occasion, our analyses have shown a strong relationship and correlation between NPS score and business growth. It is believed to be the best single predictor of future customer loyalty behavior. Therefore, NPS is extremely attractive because, as a single number, it can be correlated with certain important KPIs. However, while it can provide figures, it does not provide the necessary toolkit for companies to know what to do to positively impact the score, so if you want to talk about the NPS indicator in the context of your company - get back to us, we'd be happy to share our experience 🙂