CX Blog

CSAT or NPS®? Neither of them matter!

Written by Vivek Jaiswal | Co-founder, Customer Guru

If you have been wondering whether NPS® or CSAT is better, I have an answer for you.

It has been a long-running debate whether  NPS® or CSAT or any of the newer measures such as CES, Delight Score etc. is better than the other. I have been an active participant in this debate and, quite honestly, I don’t have a definite answer for that yet. While I tend to be inclined towards NPS® since it is easier to understand, empirically proven, actionable, and has been adopted by leading brands as an indicator of customer experience, I am of the opinion that neither of those scales is that important.

In his book ‘The Ultimate Question 2.0’, Mr. Fred Reichheld talks about Enterprise Rent-A-Car – one of the most successful car rental company, which uses a homegrown metric to measure and improve customer experience. Going by how much customers love doing business with Enterprise, it is fair to say that their homegrown metric has worked wonderfully well for Enterprise. So, if NPS or for that matter any other metric is not important then what is? Here’s the answer:

Remember The Golden Rule

One should treat others as one would like others to treat oneself.

Make this your customer experience philosophy and it will give you better results than any other metric.

Close the feedback loop

So many organisations take customer feedback but never follow up to close the loop. No matter which customer experience measure is put in place unless an organisation sets the right channels and processes to close the feedback loop with their customers, all of that data is going to be of no help. Closing the loop means not just sending an automated response saying ‘We’ve received your request and are working on it…’, but reaching back to the customers to understand the real issue and, ultimately, resolving those issues.

Empower your employees

So many organisations wish to be more customer-centric but forget that they can only make their customers happier if their employees have the power to act on the customers’ behalf. Customer centricity should become a company culture so that everyone in the organisation has the power to speak for the customers. Employees are the only ones who can make customers happier or more disappointed, CXO’s cannot be involved in every customer transaction.

Walk the talk

When top management not just talks but also acts to show that customer experience is important every day, each day, it is only then that everyone starts taking it seriously. One of the biggest mistakes leaders make when starting to use a customer experience metric is to assume that their job is done once the plans have been developed and cascaded. To sustain the momentum in long-term, constant and visible leadership energy for customer centricity is required. The leader must be seen and heard, expressing a genuine sense of urgency, commitment, and passion. Without these, it’s difficult for organisations to embrace the call to action.

In conclusion, organisations can achieve similar results by using any of the customer experience/loyalty/satisfaction metrics as long as they focus on taking action on customer feedback and not just reporting the delta in their score every month. Any metric is just a measure of how well have you been doing these things.

Would love to hear your feedback and comments. Please let me know what other important steps an organisation must take irrespective of which loyalty scale it uses.

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