Does NPS Really Matter

What can I really do with NPS?

So, NPS is a phenomenon, and it’s not going away any time soon. But, does it really matter? I’ve had some executive teams tell me, “We don’t measure NPS. We never have, and we’re doing just fine.” That may be true, in some cases - for businesses that are content with doing “just fine.” But for businesses focused on growth, the NPS is an invaluable tool that provides important insight into why your customers choose, or choose not to work with you. 

And it turns out, the question “What is our NPS score” is actually less important than the question “What do we do with our NPS score?”

But like any tool, it’s useless unless you use it - regularly. And it turns out, the question “What is our NPS score” is actually less important than the question “What do we do with our NPS score?” Businesses that get stuck holding a lens to the score itself miss the point: your customers are trying to tell you something. Successful leaders go beyond a focus on the score itself and concentrate on the system they put in place to adapt their business to their customer feedback. What are the touch points that drive your score? What do promoters like about you? Why? Why do detractors dislike you? Can they be turned? These are the important questions.

One Size Does Not Fit All

There are a number of problems with “My score is bigger than your score” thinking. First, there’s a huge variance in NPS scores across industries, regions and customer demographics. The telecommunications industry scores notoriously low. Retail, a lot higher. Second, you just can’t please everyone, all the time. There may be a segment of your market that you just will never convert. Sometimes, the best you can do is to optimize for a particular group or type of customer. Finally, unhappy customers are a vocal group, and more likely to register their discontent. 

To make the most of your NPS process, focus on listening to the feedback of your customers, reflected in your score, and making continual improvements relative to that feedback. Let NPS inform your businesses decisions and focus your brand. Create an NPS-driven growth strategy and ensure NPS is a regular part of management discussions.  

Sarah Ahern