Which NPS score would you rather have?
Though Net Promoter Score is accepted as a simple and powerful customer experience metric, business leaders must be cautious when interpreting scores.
For all companies, the NPS formula is the same:
NPS is the result of % of Promoters minus % of Detractors
The example above shows two companies, each with the same Net Promoter Score, but with different customer breakdowns.
In the first example, 25% of customers are promoters while in the second, only 10% are. On the other hand, the second company only has 25% detractors but the first company has 40%.
In these examples, it is not possible to evaluate and compare company performance until we understand the value and behaviours of Promoters, Passives and Detractors.
What is clear is that senior executives must look beyond the number to understand customer feedback and the customer-centric strategies and actions that will deliver the greatest return.
At SynGro we go beyond feedback capture and closed loop action to drive real business improvement in large, complex organisations.
We understand that each company must be understood in relation to its own unique circumstances, and that the key to driving profit from customer feedback is to apply metrics like NPS intelligently with the overlay of financial, operational and geographical data specific to your company.
To learn more about our approach, gain access to our full customer experience knowledgebase or to arrange a demonstration of our SEAMS customer experience management software, get in touch today:
* Net Promoter® and NPS® are registered Trade Marks of Fred Reichheld, Bain & Company, and Satmetrix Systems Inc.
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