All the evidence would seem to indicate NPS is too volatile to be used as central ROI for customer experience ‐ links to retention, growth and proﬁt are more appropriate and compelling.
Human behaviour dictates that if something is diﬃcult, people will ﬁnd an alternative route or a workaround.
NPS reﬂects the symptom – eﬀort closer to the cause. The consensus of opinion is that eﬀort should be part of the customer experience narrative rather than adopted as a measure.
- Temperature gauge is a good analogy, problem when too hot or cold
- Use with a mix of complementary measures
- Better at judging eﬀect on speciﬁc touch points
- Users are conscious that it is historical by nature, for example it would be diﬃcult for NPS to guide Blockbuster to an online model
- Do we always want recommendation? Some customers cost us money or are prone to take advantage
- Attention is needed on emphasis of survey, many Costa customers use the service as somewhere to meet, the coﬀee may be irrelevant
- Factor normalisation (see below)
- Human relationships cannot continuously improve
- National cultures will guide a set of normal emotional responses
- UK culture may well provide a negative NPS as normal response
- We should expect a customer relationship to do the same
- Over time a positive and negative reaction will normalise and be reﬂected in the score
- NormalisaIon is often seen as ﬂuctuaIon in the NPS score
- Is the new norm the key indicator? If so, how can we measure it?
Continually rising scores
Continuous improvement in NPS can be achieved from:
- A low starting point
- Scores being manipulated by rewarding customers for high score
- Customers only being surveyed at wow or good complaint resolution point
None of these scenarios are an indication that a new and improved normal reaction has been established.
NPS is better if…
- NPS starting point is low, is less eﬀective at guiding change with higher scores
- Survey is close to customer interaction
- A survey is also sent after customer emotion has been rationalised
- Used in conjunction with partners and others in customer federation (reference reﬂections on federation 2009)
- Perhaps best as a guide to the eﬀectiveness of current actions and as a guide for front line staﬀ
- Scale is good and bad: More replies = less direct linkage; Less replies = more easily linked
- Not as eﬀective in guiding strategy as driven by a view of historical data
- It is recognised that NPS will – and should always be - a moving ﬁgure, a good indicator of movement
- Each product and service will have a natural ceiling