NPS? is Broken

In the realm of customer feedback tools, Net Promoter Score? (NPS?) has enjoyed a prominent status as a reliable metric for evaluating customer satisfaction and loyalty. This question, the ultimate question of “how likely are you to recommend this product/service,” is the core question in NPS?. This question and the quantification behind it is the lynchpin of modern marketing and sales– and it is broken.

As businesses strive for a more nuanced and proactive approach to understanding customer experiences, the limitations of NPS? are increasingly evident. In this post series, we explore the reasons why NPS? may fall short as the ultimate feedback tool.?

NPS? categorizes customers into three groups based on a single question: Promoters, Passives, and Detractors. While this simplicity is appealing, it often oversimplifies the complex spectrum of customer sentiment.?

Customers' feelings toward a brand are multifaceted, and relying solely on NPS? may miss valuable nuances. Worst of all, the method most organizations use to obtain the feedback is archaic and not ideal. Which takes us to the discussion regarding email-driven feedback surveys.?

Why does email as a feedback collection method not work? We as consumers are inundated with emails trying to sell us something. We are hit from all different directions and it is hard to keep up with the volume. Consumers don't want to receive an email asking them to rate an experience that occurred 15 minutes ago, let alone the day before. Sometimes customers don't even receive the feedback emails in time due to the emails landing in spam or a consumer simply being away from the inbox for some time. As a business why would you use this method? The open rate will be small and the completion rate even smaller and thus you just don't get the sample size to determine real satisfaction and loyalty to your product or service. Those who do fill out the feedback survey are a skewed set of consumers and thus the results will be biased and will not represent an accurate sample.?

Some additional negative aspects include:?

Overwhelming Frequency:

• Consumers may develop negative sentiment if they receive feedback requests too frequently. Excessive or intrusive requests can be perceived as spammy and may lead to irritation.

Irrelevant or Poorly-Timed Requests:

• Sending feedback requests that are irrelevant to a consumer's recent interactions or poorly timed can result in frustration. For example, asking for feedback too far after a purchase may be seen as irrelevant whereas too soon may be seen as intrusive.

Complicated or Lengthy Surveys:

• Lengthy or complicated feedback surveys may discourage participation. Consumers prefer surveys that are concise, easy to complete and don't require a significant time investment.

Lack of Trust or Privacy Concerns:

• Consumers may be hesitant to provide feedback if they have concerns about the privacy and security of their information. Building trust and ensuring data protection are critical in encouraging open feedback.

Non-Transparent Use of Feedback:

• If consumers feel that their feedback is not used transparently or if improvements are not visible, they may become disillusioned and less inclined to participate in future surveys.

While there are many concerns with email as a medium for feedback, we at VeroTerra think one of the biggest problems is the lack of an opportunity for proactive behavior. That makes it near impossible to change the outcome of a customer’s dissatisfaction or lack of loyalty is near impossible.?

This is one of the many problems with NPS? and this is why VeroTerra disrupts NPS? and gives businesses and organizations a revolutionary way of understanding their customer’s sentiment and likelihood to recommend to others. The patent-pending technology gets real-time data in a frictionless way that the act itself delights customers.

Find out how: https://www.veroterra.com/product

Net Promoter?, NPS?, NPS Prism?, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., NICE Systems, Inc., and Fred Reichheld

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