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Opinion Loyalty Industry

Is NPS Still Relevant in the Social Customer Reality?

We recently came across an interview with the CEO of SatMetrix, a firm that delivers Net Promoter Score software solutions for companies looking to better understand and manage their customer base.

His interview led us to think a bit about the current role of NPS in a rapidly evolving, social media driven customer market.

Is NPS Still Relevant?

NPS has a challenge — proving it’s still relevant in a world of social customers.

At times, it seems like there’s an undercurrent that’s threatening to drag it down.

When the Net Promoter Score was first created, there was no Facebook or Twitter and mobile phones were simply devices that could call and text. With things having changed so much, how can NPS still be a valid method — especially without having evolved in any way?

Ahead of the Times

Therein lies the answer — the very simplicity and stability of NPS is what makes it relevant and resilient in a changing business reality.

Social media has magnified its relevance

NPS was created on a few key assumptions:

  1. That referrals were important to business growth potential
  2. That the defining characteristic of a customer was whether they were a promoter, neutral or detractor of the business.
  3. That customers could in fact influence a broad enough set of prospects to be important to a business.

So despite being born before the social media and mobile age, NPS almost foretold the critical role that customers would play in a business’ visibility, brand and momentum.

It’s importance is now clear and there is not question that companies need to focus on the referral strength of their customer base — as a key basis for gauging future business success.

While the arguments still exist about how effective NPS is at an execution level, we think it's just that -- an execution issue.  By building a complete process around NPS, a company gets the benefit of a core metric that its team can align around as well supporting data to make the findings more dependable and actionable.

Jun 28, 2014 | Original Link

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