What’s Missing in Your Net Promoter Score?

Teradata Guided Analytics
Teradata Employee

Net Promoter Score. It’s so appealing. Such a simple question – On a scale of 1 to 10, how likely are you to recommend us to a friend? – can yield so much insight into  your customers’ satisfaction.

But what are you missing?

As the “subject matter expert” for Aster’s Customer Satisfaction Index solution, I get pulled into many projects around measuring sentiment and satisfaction. Based on these conversations, there are three consistent concerns I hear about NPS.

NPS is too simplistic. Surveys and promoter scores provide a snapshot. They give you a score for a single point in time for a sample of your customers. Depending on your sample – only customers who call customer support, for example – the results could reflect sampling bias.

NPS doesn’t provide a dynamic view across channels. You interact with customers across a variety of channels. What does a score of 7 indicate about your customers’ interactions with your website, your retail stores, your service, your product? What does it say about how all those channels interact to satisfy your customers? Customer effort may be just as important as satisfaction in terms of loyalty, but by providing such a limited view of cross-channel interactions, NPS does little to help you measure this effort.

NPS can be too complex. Some of our customers already realized NPS wasn’t providing the insights they needed. So they began performing advanced statistical analysis to predict NPS based on historical scores. The stats geek in me loves this approach and desire to dig into the data. The marketer in me, however, does not want to use the term “generalized linear modeling” to convince executives to take action.

I guess that leads to the third point…

NPS isn’t actionable enough. Again, consider the case when a customer rates you a 6. Which interactions with the customer led to this score? How can that rating help you improve your business? Can you identify specific areas within your operations to improve? Can you identify all similar customers with similar experiences for a targeted marketing campaign?

Fortunately – if not surprisingly, considering the URL of this blog – Aster’s Customer Satisfaction Index (CSI) solution meets all these challenges. It provides a dynamic multi-channel view across all customer touch points. While CSI rules may be based on advanced analytics, they can be built and executed by the most, ahem, analytically challenged executives. And the solution integrates with a variety of tools so that results can be actionable throughout your organization.

Check out this white paper “What’s Missing In Your Net Promoter Score?” to learn more.

1 Comment
Teradata Employee

For anyone interested in additional reading, Information Management had a good article last year on "How Big Data Analytics Will Displace Net Promoter Score."