Should you be measuring customer experience beyond NPS?

5 September 2018



With NPS losing traction and not providing a big picture in terms of customer service performance. What is the alternative?



Customer experience boils down to the perception a customer has of a brand. Everything a company does contributes towards how customers perceive a business. If you are dependent upon a high Net Promoter Score (NPS), which is a single metric approach to measure customer satisfaction, you must ask yourself, is it still relevant?

Inside Retail published an article in August 2018 that questioned the relevance of NPS:

“Despite being a simple, easy-to-implement survey that serves as a benchmarking tool for customer satisfaction, the main problem with the NPS system is that it does just that: it measures customer satisfaction. But when was the last time you recommended a brand or business because you had a satisfactory experience?”

The article continued:

“The NPS system was created in an era when customer service was a department that responded to customer enquiries and complaints. Today, nearly every department is concerned with customer experience.”

Although NPS has been around since 2003 and it is widely used to track performance, there are some questions regarding the effectiveness of a single metric approach and how effective it is during a digital transformation. There are businesses that could be penalised for a low NPS score if they have a product that people are not likely to talk about.

Satisfied customers are the most effective brand supporters and ‘word of mouth’ remains the best form of advertising within social networks.

NPS is based solely on how likely, or unlikely an individual would be to recommend a product, a brand or a company to a friend or colleague. On a scale of 0-10, a score above zero means your business is doing something right.

Inside Retail finished the article with an interesting comment about the potential issues with relying solely on NPS:

“In an era of inner circles (best friends), social circles (Facebook, Instagram) and professional social circles (LinkedIn), what you would recommend to a friend might be different from what you recommend to a colleague. And what you would share online might differ dramatically from what you would share offline.”

With NPS losing traction and not providing a big picture in terms of customer service performance. What is the alternative? Customer Experience Management (CEM) tools like mystery shopping can provide an in-depth measure of customer service. The beauty of it, is it can be tailored uniquely to each business and the scope is vast.

If you would like to know more about mystery shopping and how it can help your business, please email sales@hoed.co.nz or call 0800 164 470.


Hoed Research, Research Company, Mystery Shopping, Audit and Compliance, Merchandising,, Market Research



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