Customer Experience: Go Beyond NPS

July 9, 2021

Forbes defines the Net Promoter Score (NPS) as an index used to determine the willingness of customers to recommend a brand, product or service. Through a questionnaire, customers and consumers respond about their experience with that product or service, and the responses create a metric that is used to measure it. Customers rate the likelihood of their recommendation on a scale of zero to 10. Companies then convert this to an index ranging from -100 to 100.

Not surprisingly, NPS played an important role in building the reputation of big brands, yet managers now want more answers about what it measures, what its shortcomings are, and more effective alternatives.

What does the Net Promoter Score measure?
The Net Promoter Score specifically helps companies categorize customers into groups based on how likely they are to recommend the company. Using a scale of one to 10, they identify the following:
  • Detractors in scores from zero to six
  • Liabilities on a score of seven to eight
  • Promoters scoring nine and above

When companies convert scores to the index range, they can see how well they rank against competitors in customer satisfaction.

Some business owners also use NPS to manage the customer experience and ensure satisfaction.

NPS often also indicates customer loyalty. Customers most likely to recommend a company are also more likely to keep buying the product or service. A company may then spend fewer resources to retain them than other customers. Loyal customers also cost less to retain than to find new ones.

Another interesting application of this metric links scores directly to business growth. If customers don't want to refer a business to a colleague or friend, this is a good indicator that something is wrong. It also provides a forecast of limited future growth if the company makes no changes to the way it does business or manages the customer experience. Note that 85% of small business customers find out about the company by word of mouth.


Startup Mundi has NPS 91!

This metric is used by us here at Startup Mundi to be able to monitor the level of satisfaction of our customers, we usually apply the questionnaire always at the end of game sessions and each one has its individual assessment.

What do we gain by that? Well, in addition to being a parameter aligned with what we work with in our methodology, it also allows us to individually identify the perception of each one and, consequently, a targeted action when we notice that the assessment is not in accordance with what we consider ideal.

It is a true portrayal of the perception of relevance and quality of our work and we take great pride in having such a high average.


Not everything is NPS


The customer experience is a bigger differentiating factor than the product or its price today. Customers are impacted all the time with different incentives and promises from other brands. Therefore, companies need to focus on improving this experience to gain loyal customers and their referrals.


NPS plays an important role in evaluating and managing the customer experience. However, it barely scratches the surface of the issue, it takes dedication and assertive strategies to keep your customer satisfied and loyal to your service or product, but most importantly, to your brand and its entire purpose.


A satisfied customer is a customer who identifies with the brand and everything it delivers.


Some managers believe it's time to completely retire NPS. Others believe that supplementing it with other effective measures can improve the data it provides. Whichever metric you choose, the important thing is to start with a well-aligned strategy.


Considering the company's mission, vision and objectives and choosing the metrics that most align with the objectives, while assessing the customer experience, can be a good way to have a more accurate picture of how your customer's experience is going. .


In addition to all metrics, it's also important to focus on that experience. Often, companies start and end their strategies from their own perspective. To create a better experience, companies must first understand the current experience.


They are essential to understanding how customers experience your brand and what metrics you should monitor to help you improve it.


Life beyond NPS - Your brand is more than a metric.


The end result is that a better customer experience equates to greater customer satisfaction, which leads to an increase in referrals and an increase in cross-selling and upsell opportunities.


A well-implemented CX measurement program brings many valuable insights into your customer loyalty, areas for improvement and the interactions that matter most.


The best recipe for a successful customer experience? Make your customers happy, bring them closer to your brand and let them spread good words about you!

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