Net Promoter Score (NPS) has been a cornerstone of customer experience measurement since its introduction in 2003 by Frederick F. Reichheld in the Harvard Business Review. Its simplicity and widespread adoption – now used by two-thirds of Fortune 1000 companies – have made it a go-to metric for many organizations.
However, relying solely on NPS is no longer sufficient in today’s complex customer experience landscape. While NPS remains an important indicator, it’s crucial to recognize its limitations and explore complementary metrics for a more comprehensive understanding of CX performance.
The NPS conundrum. How valuable is it?
NPS continues to provide valuable insights, but its effectiveness has been outshone by other metrics over time. Rob Wilkinson, CX Solutions Consultant at evaluagent, notes that “Over time, the use of NPS surveys has become diluted.”
Furthermore, concerns about the reliability of self-reported NPS results have emerged. For example, the UK’s Competition and Markets Authority (CMA) has begun independently scoring the NPS of major banks, highlighting a growing need for more robust and diverse CX measurement approaches.
Beyond NPS: What other CX metrics should you measure?
Consider incorporating these alternative metrics to gain a more holistic view of your CX performance:
- Customer Effort Score (CES)
This metric assesses the ease of customer interactions with your company, helping identify potential points of friction in the customer journey.
- Customer Satisfaction Score (CSAT)
CSAT surveys provide more granular insights into customer satisfaction with specific interactions or overall experiences.
- Voice of Customer (VoC)
Highly customizable VoC surveys allow you to gather detailed feedback on various aspects of the customer experience, preferences, and expectations.
- “Have you ever recommended us” survey
This approach measures actual recommendations rather than just the likelihood, offering concrete data on word-of-mouth impact.
- Customer churn rate
While not survey-based, tracking churn provides valuable insights into long-term satisfaction and loyalty.
Adopting a multi-faceted approach like this to CX performance measurement can drive significant business results. According to Accenture, companies that view customer service as a value center rather than a cost center experience a remarkable 3.5x increase in revenue growth.
Leveraging advanced technology for CX insights
As businesses increasingly recognize the value of a multi-faceted approach to CX measurement, many are also undertaking CCaaS migration projects.
This shift to cloud-based contact center solutions not only enhances operational efficiency but also provides more robust tools for collecting and analyzing diverse CX metrics. By combining advanced technology with a comprehensive measurement strategy, you can gain deeper, more actionable insights into your CX performance.
Drive customer experience success with a multi-pronged approach to measuring CX performance
While NPS isn’t going away anytime soon, it’s clear that a more comprehensive approach to measuring CX performance is essential. By incorporating alternative metrics alongside NPS, organizations can gain deeper insights into their customers’ experiences, identify areas for improvement, and ultimately drive stronger customer loyalty and business growth.
As you refine your CX measurement strategy for 2024 and beyond, consider how these alternative metrics can complement your existing NPS data to provide a more complete picture of your customer journey and satisfaction.