The use of the Net Promoter Score (NPS) in measuring customer loyalty has become commonplace among marketers and strategists. The Net Promoter Score, or “Ultimate Question” is “How likely are you to recommend our products/company/services to a friend?”. When deployed in a customer survey, the question is simple yet powerful.
But like anything meaningful, it’s not necessarily easy to implement or interpret the results from an NPS initiative. Many companies miss out on the beneficial information that the NPS provides by making critical mistakes in implementation. Among these:
- Ignoring the strategic implications of the NPS. The NPS is meant to change the way businesses think about their customer relationships. Failing to understand the impacts of the NPS is missing an opportunity to drive organizational change.
- Using the NPS in a vacuum. The NPS is most valuable when used regularly. Conducting one NPS survey will not provide deep insights into customer behaviors; conducting them often will.
- Misinterpreting the NPS results. Blytheco Director of Customer and Partner Loyalty Apryl Hanson states: “Another pitfall I have found at organizations implementing the Net Promoter Score is not believing the data given, or finding an excuse for a customer giving you a particular score (i.e. must not have understood the survey, but I know they are generally happy – this one person just doesn’t work with us, etc.) I would caution that these are dangerous ways of looking at your survey data and instead time should be focused on what learnings you can find from the total data instead of looking at each individual response. If 20 people say you have a problem with customer support, you might want to better understand why those customers have that perception. It might end up being a simple process change or an awareness campaign that could move your score in the right direction.”
Read more about pitfalls of the NPS here. Has your company implemented NPS or other customer loyalty scoring mechanisms? Have you found them to be helpful? Let us know!