4 NPS Myths and the Truth Behind Them

Net Promoter Score or NPS is a star among CX metrics. And, as it happens to real-life stars, there are inevitably several misconceptions regarding this metric’s use, potential and benefits.

Since it is a widely used metric and a popular way to collect and analyze customer feedback, it is important to have clear expectations of what it can do for us. False or exaggerated claims about NPS are dangerous when taken at face value because they paint a skewered picture of a brand’s customer satisfaction level and may lead to actions that will not have the expected results.

It is now time for some serious NPS myth-busting!

Myth #1: NPS can solve every problem a brand faces with its customer experience!

Oh, NPS as a cure-all for brands that seek to improve their customer satisfaction is one persistent myth that doesn’t seem to go away. 

The Truth: NPS is arguably a good way to gauge customer loyalty and categorize your audience into promoters, passives and detractors but is by no means the only metric that you need to boost engagement and foster loyalty. The generic wording of an NPS survey question (“How likely are you to recommend our brand/product/service to a friend”) does not leave room for more insights on other aspects of the customer journey. Even when paired with an open end question that invites customers to justify their score, NPS will not magically solve all your problems and that is why you should also incorporate other metrics (CSAT, CES) on your customer feedback collection strategy.

Myth #2: NPS is the number one growth predictor!

Well, that myth has stuck because its premise is very alluring and convenient. If only it were, true…

The Truth: Although NPS has been proven to be a valid predictor of repeat purchases, referrals, revenue, and growth, it is a stretch to call it the #1 growth prediction metric. New studies and data appear every day and there is an on-going discussion on the role of each CX metric, especially with the advent of CES (Customer Effort Score) as the newest player in the game. NPS has been celebrated for its many advantages but does not reign supreme over other metrics.

Myth #3: NPS is the only way to measure customer loyalty!

Don’t we all wish that customer loyalty would be tracked through the use of just one metric? Well, this collective wish has not been granted yet…

The Truth: NPS is only one way to measure customer loyalty and if you do not follow it up with more questions that will shed light on other aspects of customer experience, it cannot work wonders for your customer loyalty. NPS scores are great but the more data on your disposal the better the chances that you can use them as diagnostic tools and plan actions that will improve and solve problems for your customers.

Myth 4: You should send NPS surveys as often as you can!

There is a right time and a right place for everything. Same goes with NPS surveys…

The Truth: Sending NPS surveys once a year or every few weeks will just not cut it! The frequency with which you ask customers to share their experience with a product and service and answer whether they would recommend them to a peer plays a significant role not just on the results but also on the response rate. Ask once a year and you may miss trends and changes in customer behaviour. Ask too often and you may end up with customer fatigue or -worse- disturbed customers. Use the data from your NPS surveys to hit the sweet spot where customers will want to respond to your questions and keep wanting to offer you their feedback.

We are sorry to have burst some common NPS bubbles, but understanding the true nature of this metric is paramount to making the most of it. If you’re looking for a tool that will help you optimize your NPS surveys, www.e-satisfaction.com offers you a range of features that will help you take your customer feedback collection and analysis efforts to the next level.