NPS v Customer Satisfaction

NPS or Net Performance Score

Is the measure of one question, “would you recommend my company or service to your friends and family”.

NPS is measured in a sliding scale of -100 to +100. Where -100 means everyone is a detractor (wouldn’t recommend) or +100 where everyone is a promoter (would recommend).

Customer Satisfaction

Asks more questions related to specific options and products and services. “How quickly was your call answered”, “the advisor understood my reason for the call” etc.

From a Business Standpoint

Depending on your seniority, most higher management or CEO types prefer NPS as they see a direct correlation to financial gain as more promoters means more business.

Lower management, your line managers or Ops prefer Customer Satisfaction as it lets them tailor the floor staff and training to deal with issues on the front lines.

The Future

NPS is still in its infancy only going since 2003 and not really coming to the fore til 2010-2011 in a big way. There is much debate as to its validity.

Even the inventor of the metric stated his research and findings were flawed. There is no direct correlation between business growth and the NPS metric.

On the other hand, we do need a metric that can work across customer experience and provides a measurable link to successful business.

And on that note, it’s possible something else will come along to replace them both.

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