Why a Narrow Focus on Net Promotor Score Could Undermine Your Brand's Success in Retail

In Canada's fast-evolving consumer packaged goods (CPG) industry, understanding customer sentiment is crucial for mid-sized brands striving for growth. One of the primary tools in this journey is the Net Promotor Score (NPS), which gauges customer loyalty and encourages businesses to focus on promoters—those customers who would advocate for the brand. While this approach may seem practical, it can lead to unintended consequences that compromise your brand’s service and profitability.

Retailers often track customer experience and cater to customers using the NPS Net Promotor Score system, which divides customers into promoters, passives, and detractors. Companies usually prioritize engaging with promoters, assuming that cultivating this group alone will drive sustained growth.

However, neglecting passives and detractors can inadvertently result in substandard service. Research shows that 80% of customers with a negative experience will not return, and nearly 83% of dissatisfied customers will share their knowledge with others. This reliance on a narrow segment of customers can be risky, especially for mid-sized brands heavily dependent on retailers for distribution.

You may be aware of net promotor score tracking because you use it as part of your CPG brand strategy. While beneficial to brand enthusiasm, the focus on promoters can lead to neglect of the other customer segments that can build or break your brand image. By ignoring the voices of dissatisfied customers, brands risk fostering indifference—one of the most damaging states for any business. Brands must understand that indifference is often born from overlooked interactions rather than outright dissatisfaction. Encouragingly, a study revealed that brands seeking feedback from all customer segments experience a 15-20% increase in retention rates.

Instead of solely cultivating promoters, mid-sized brands should also invest in reigniting the interest of those who may have had a less-than-stellar first experience. This is particularly critical in the retail environment, where consumers are faced with overwhelming choices. For example, making targeted offers to customers who may have been disappointed or indifferent can transform experiences and foster loyalty over time.

Ultimately, the NPS strategy is a significant misstep for smaller brands looking to create a solid foundation. The solution lies in balancing the focus on generating promoter enthusiasm while also addressing the needs and concerns of all customer segments, turning detractors into advocates.

To thrive in competitive retail spaces where larger brands have strong footholds, a partnership with a retail merchandising company can help you build strategies for building loyalty with all market segments. They can help you develop strategies for tracking customer experiences, offering insights into how your brand can cater to a broader audience while advocating for promoter engagement. Brands that embrace a comprehensive customer experience strategy are better positioned to resonate with consumers, cultivate loyalty, and succeed in an increasingly complex marketplace.

By broadening your focus beyond just your promoters, your brand can flourish in retail.