NPS is a customer satisfaction metric that is popular these days. Toted by Bain & Co. and advocated by companies such as GE, it has gained a lot of attention as the new way to gauge customer satisfaction.
NPS focuses on dividing customers into four groups to see which ones would most likely recommend you to someone. That’s where customer satisfaction has been focused mainly in the past few years, would client A recommend you to potential clients B and C? I’ve used NPS, it’s a good metric, and I think if used in conjunction with other metrics and tools, it is a great piece of the puzzle you can add in to get a clear picture of what it is your customers really think.
A piece of the puzzle is really what it should be seen as; it should not be the only metric you use. I had a battery of metrics and NPS was just one of them. It helps pinpoint problem areas and areas that a company really excels at, but on its own, it won’t give you the grand “aha” information most companies seek. On its own it will not tell you the answer to the “so what” or “now what” questions you need to ask with any customer service analysis. It only helps answer the “what.”
Don’t get me wrong, I do like the tool, but understand it is just a piece of the metric arsenal. Alone it can’t help you win the market, but as part of a team of metrics, it can.