NPS_Customer Feedback

Why NPS® isn’t about just adding another question in customer satisfaction survey?

Written by Vivek Jaiswal | Co-founder, Customer Guru

Are you adding NPS as just another question in your customer satisfaction survey?

Measuring NPS by asking the ‘Ultimate question’ is a good start, however when an organisation sets out to implement NPS as a measure of customer loyalty, it should be especially wary of considering it as just another question in the feedback survey. This is a sure fire way of how NOT to be successful with NPS.

In itself, NPS is a powerful indicator of customer behaviour, and it helps identify the promoters and detractors along with the reasons behind both. Armed with such insights, companies could act on the feedback to recover some detractors as well as up sell promoters. Of course this requires a fundamental shift in how customer feedback is viewed. Especially when NPS is clubbed with several other ratings question. The thing with ratings question is that it offers a great way to rate internal departments and place them against each other. But it fails to correlate with customer behaviour and that is where it falls short of giving cues on what could be done to improve customer loyalty, and therefore retention revenue.

I am confident that organisations that have successfully implemented NPS did not approach it as just another question in the customer satisfaction survey. There are countless case studies and testimonials on why implementing NPS was taken as a strategic decision by some of the market leaders around the world. Here are a few more reasons why NPS shouldn’t be looked as just another question:

1. Because it is a system, and not just a score

Here’s a screenshot of one of my earlier blogs where Rob Markey, the co-founder of NPS, explained how the Net Promoter System® works:

Rob Markey_NPS_Bain and Consulting

2. Because measuring the score is just the start

When implementing NPS as a metric, follow the 3 M’s to succeed with it: measure, monitor, and manage. Without closely monitoring the fluctuations in NPS and constantly taking action on detractor issues, it will be impossible to track the benefits of using NPS. Additionally, if you could slice and dice the NPS score across customer segments and geographies, you would get insights which were completely hidden from your view. It phenomenally expands your ability to resolve customer issues at granular level while also identify drivers that may be affecting only a segment of your customer base and causing them to switch. Wouldn’t you like to have an opportunity to recover them?

3. Because it is about delighting the customers

NPS inherently focusses on going beyond “satisfying” the customers. On an NPS scale, Passives are satisfied customers. A metric that encourages an organisation to delight its customers and offers the insights to act on that motivation cannot be just another question in the customer satisfaction scale. It is already asking for more from your customer feedback!

Have you been struggling to sell the value of implementing NPS as a system in your organisation? Or have you heard others refer to NPS as ‘just about adding another question’ in the survey? I would love to hear how you’ve overcome such objections. Please do share your feedback and comments below.