{"id":23324,"date":"2021-09-15T15:09:06","date_gmt":"2021-09-15T19:09:06","guid":{"rendered":"https:\/\/referralrock.com\/blog\/?p=23324"},"modified":"2023-08-01T14:32:14","modified_gmt":"2023-08-01T18:32:14","slug":"nps-vs-other-measures-customer-satisfaction-experts","status":"publish","type":"post","link":"https:\/\/referralrock.com\/blog\/nps-vs-other-measures-customer-satisfaction-experts\/","title":{"rendered":"Why NPS Surveys Aren\u2019t Enough to Gauge Customer Satisfaction [Expert Survey]"},"content":{"rendered":"\r\n\r\n\r\n

You\u2019ve drafted your NPS questions<\/a>, decided on which customers to ask, and set a date for sending the survey out. Great!<\/p>\r\n

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Still, you might be wondering, “Is this enough?”\u00a0<\/p>\r\n

While NPS surveys are convenient for businesses to send and effortless for customers to fill out, can it accurately depict the entire picture of customer satisfaction? Or does it need other supplemental research metrics?<\/p>\r\n\r\n\r\n\r\n

We conducted a recent survey with 49 companies. As it turns out, the answer is more complicated than a simple yes or no.<\/p>\r\n\r\n\r\n\r\n

88% of companies use NPS surveys<\/h2>\r\n\r\n\r\n\r\n

We started by determining how many companies actually use NPS surveys to measure their customer satisfaction.<\/p>\r\n\r\n\r\n\r\n

As it turns out, a strong majority at 88% of companies currently send out NPS surveys<\/strong> as part of their customer research.<\/p>\r\n\r\n\r\n\r\n

Another 59% rely on the Customer Satisfaction Score (CSAT)<\/strong>, followed by 57% who customize their own open-ended questions.<\/p>\r\n\r\n\r\n\r\n

Following that, 51% of marketers send out custom multiple-choice<\/strong> surveys, while 35% use visual rating surveys<\/strong> (such as star rating surveys or the smile\/frown face format).<\/p>\r\n

Only 18% use the Customer Effort Score (CES)<\/strong>.<\/p>\r\n

But what happens after companies receive these NPS results?<\/p>\r\n

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\"Types<\/figure>\r\n\r\n\r\n\r\n

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43% of companies send follow-up questions<\/h2>\r\n

According to our survey, 43% of companies use NPS surveys as a jumping off point. They send follow-up questions to dig deeper into their customer’s responses.<\/p>\r\n

The majority 57% of companies do not. (This doesn’t mean these companies aren’t using another survey or customer satisfaction measure<\/a> \u2013 only that they don’t send follow-up questions after an NPS survey.)<\/p>\r\n\r\n\r\n\r\n

\"Do<\/figure>\r\n\r\n\r\n\r\n

NPS scores accurately predict customer satisfaction, but don’t help with areas of improvement<\/h2>\r\n

We then asked our survey group if their NPS scores were reasonably accurate predictor of customer satisfaction. Did the responses correlate with actual customer behavior?<\/p>\r\n

On a scale of 1-10, marketers gave NPS an average accuracy of 7.83 in showing which customers needed more attention and nurturing. \"NPS<\/p>\r\n

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At a slightly lower accuracy, NPS scores were rated an average of 7.59 in predicting whether a customer positively promoted their company to others. This includes which customers actually tell friends about the brand, leave positive reviews, share on social media, or refer others through a referral program<\/a>. \u00a0<\/p>\r\n\r\n\r\n\r\n

\"NPS<\/figure>\r\n\r\n\r\n\r\n

The accuracy was also high (although slightly less) when it came to customer retention. Marketers gave NPS scores an average of 7.47 in correlating with customer retention, or which customers remained loyal to their business. \"NPS<\/p>\r\n\r\n\r\n\r\n

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Where NPS doesn’t seem as effective, however, is in pinpointing areas for improvement. Our respondents rated the survey scores a 6.98 when it comes to showing what aspects of a customer’s experience need to improve.<\/p>\r\n\r\n\r\n\r\n

\"NPS<\/p>\r\n

Another blindspot of NPS is knowing why the scores changed month to month, or quarter to quarter. Marketers gave NPS an average rating of 6.67, revealing that it can be hard to determine why the scores fluctuate, looking at the survey results alone.\u00a0<\/p>\r\n\r\n\r\n\r\n

\"I<\/figure>\r\n

While NPS surveys can show how a customer feels toward your brand at an exact moment, they are more of a starting point. You’ll still need to do some more digging to discover why a customer’s feelings toward your brand change, and how you can better serve them in the long run. How\u00a0<\/p>\r\n\r\n\r\n\r\n

What do marketers think of NPS surveys<\/h2>\r\n\r\n

So is NPS enough to get a clear picture of customer satisfaction? Based on the long-form responses we received from professional marketers, the opinions on NPS surveys<\/a> can be classified into four groups:\u00a0<\/p>\r\n\r\n\r\n\r\n

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  1. NPS is the best measure of customer satisfaction.<\/li>\r\n
  2. NPS is not the best measure of customer satisfaction.<\/li>\r\n
  3. NPS is a good measure of customer satisfaction, but should be supplemented with other methods.<\/li>\r\n
  4. NPS is the best measure of customer satisfaction \u2013 when paired with follow-up questions.<\/li>\r\n<\/ol>\r\n\r\n\r\n\r\n

    Read what marketers in each of these four groups had to say.\u00a0<\/p>\r\n\r\n\r\n\r\n

    Group #1: NPS is the best measure of customer satisfaction<\/h3>\r\n

    With well over half of companies sending NPS, it’s obvious the survey offers several benefits. Here\u2019s why experts think NPS is an extremely valuable measure of customer satisfaction.<\/p>\r\n

    It\u2019s easy to understand<\/strong><\/p>\r\n

    The net promoter score is easily understandable, which is why Devin Johnson from Kennected<\/a> uses it as his company’s go-to metric for measuring customer satisfaction.<\/p>\r\n

    \u201cIt\u2019s the most important for overall brand loyalty because it\u2019s easy to understand and relatively inexpensive to use. Plus, follow-up questions can direct you toward improvements. NPS naturally provides more quantitative data than qualitative, which may be best found from custom-designed surveys<\/a> instead.\u201d<\/p>\r\n

    It helps separate customers into groups<\/strong><\/p>\r\n

    Mike Nemeroff from Rush Order Tees<\/a> shares: \u201cAll in all, NPS surveys are the most accurate way to measure customer satisfaction because of the way such a large array of customers can be divided into three separate groups: the unsatisfied, satisfied, and middling customers.<\/p>\r\n

    \u201cNo other survey method does a more accurate job of that division. And separating your market so you can help target them in different ways is essential to the growth of your business.\u201d<\/p>\r\n

    Group #2: NPS is not the best measure of customer satisfaction<\/h3>\r\n\r\n\r\n\r\n

    While NPS has a lot of merits, it’s hard to capture the whole picture with just one survey. Here are the top reasons why some experts don’t rely on NPS to measure customer satisfaction:<\/p>\r\n\r\n\r\n\r\n

    Numerical values can’t accurately measure customer satisfaction<\/strong><\/p>\r\n\r\n\r\n\r\n

    \u201cNPS surveys don\u2019t give you the most accurate measurement of customer satisfaction because you don\u2019t get the ideas and opinions found in real feedback and answers to open-ended questions,\u201d insists Nathan Murphy from QuizBreaker<\/a>.<\/p>\r\n\r\n\r\n\r\n

    \u201cGiving customers the chance to answer questions with their own words rather than numerical values gives you certainty that you know them well, rather than taking a wild guess that the scale means to them exactly what it means to you.<\/p>\r\n

    “Still, while NPS surveys aren\u2019t the most accurate measurement of customer satisfaction, they give you a piece of the puzzle.\u201d<\/p>\r\n\r\n\r\n\r\n

    Difficult to tell the exact reason behind the scores<\/strong><\/p>\r\n\r\n\r\n\r\n

    Jitesh Keswani from e-Intelligence<\/a> also argues against NPS. \u201cLooking at other surveys and methods, the NPS survey is not the most accurate way to measure customer satisfaction. One cannot know the reasons behind the\u00a0 NPS scores, like you can with other surveys.\u201d<\/p>\r\n\r\n\r\n\r\n

    Group #3: NPS is a good measure of customer satisfaction, but should be supplemented with other methods<\/h3>\r\n\r\n\r\n\r\n

    In our third group, we have several respondents who take a neutral stance on using NPS.<\/p>\r\n\r\n\r\n\r\n

    Customer satisfaction is too complex to be a single score<\/strong><\/p>\r\n

    For example, Cheryl James of CL James Consulting, LLC<\/a> says, \u201cNPS is one way to measure customer satisfaction, but not the only way. If you are really looking to hear the voice of your customer, you need to use the various surveys to gather different data points.\u201d<\/p>\r\n\r\n\r\n\r\n\r\n\r\n

    Jennifer Dinnen from MacKenzie Corporation<\/a> speaks along the same lines. \u201cI don\u2019t doubt that NPS can be a predictor of customer satisfaction. I just get concerned when we simplify this complicated topic down to one number. Things are so much more complex than that.<\/p>\r\n\r\n\r\n\r\n

    \u201cWe need to ask the question of why we want to measure customer satisfaction. Because we believe that it is an accurate indicator of customer loyalty? In this day and age, I am not sure that still holds true.\u201d<\/p>\r\n\r\n\r\n\r\n\r\n\r\n

    Different metrics are needed for a complete understanding<\/strong><\/p>\r\n

    Suneha Dutta from Fundsquire Pty Ltd.<\/a> agrees that, \u201cNPS has done a lot to bring customer evaluation to the forefront and is a good indicator of consumer opinion. But it is not the cure-all.<\/p>\r\n

    \u201cI think different kinds of metrics, including CSAT and CES, should be considered along with NPS to gather a more complete understanding of a brand\u2019s customer perception.\u201d<\/p>\r\n

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    If you want to supplement your NPS surveys with voice of the customer data, we have other articles that cover professional research tips<\/a> and the right customer questions to ask<\/a>.<\/div><\/div>\r\n

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    Group #4: NPS is the best measure of customer satisfaction \u2013 when paired with follow-up questions<\/h3>\r\n\r\n\r\n\r\n

    Our survey revealed the majority of companies see the best results with NPS surveys and follow-up questions.<\/p>\r\n

    Supplement NPS with open-ended questions<\/strong><\/p>\r\n

    Miranda Yan from VinPit<\/a> explains. \u201cI would say the NPS survey is the most convenient way to measure customer satisfaction, but it lacks in procuring accurate data. It isn’t quite effective in providing you product-wise feedback.<\/p>\r\n

    \r\n\r\n<\/p>\r\n

    \u201cAn NPS survey is easy to take and doesn\u2019t annoy the customers. This measure is built on the rationale of convenience. If companies want more in-depth data, they can send follow-up questions to their customers.”<\/p>\r\n\r\n\r\n\r\n

    Lauri Kinkar from Messente<\/a> suggests, \u201cAside from the rating system, you can add open-ended survey questions, like \u2018What is the primary reason for your score?\u2019 or \u2018How can we improve your experience?\u2019”<\/p>\r\n

    This helps you “understand the customer’s pain points and determine how to improve your service. By including questions like these, you are encouraging customers to provide constructive criticism. The more you invite customers to do it, the more likely they’ll be to answer the questions honestly.\u201d<\/p>\r\n\r\n\r\n\r\n\r\n\r\n

    NPS scores require additional understanding<\/strong><\/p>\r\n

    What are some recommended follow-up questions you can add to your customer research process?<\/p>\r\n\r\n\r\n\r\n

    OnPay Online Payroll<\/a>\u2019s Elliott Brown suggests asking customers to briefly explain the reason behind their score. “Without this question, the NPS score doesn\u2019t help you understand what you\u2019re doing well and what you need to work on.\u201d<\/p>\r\n\r\n\r\n\r\n\r\n\r\n

    Caroline Lee from CocoSign<\/a> shares these follow-up questions:<\/p>\r\n\r\n\r\n\r\n