We all know it: the Net Promoter Score (NPS). Companies around the world use the metric to evaluate the customer experience, the results influence strategic and financial investments, and the NPS allows organizations to benchmark themselves against competitors.
The NPS is a proven measure of customer loyalty and helps identify loyal customers who you can in turn use as ambassadors.
Unfortunately, identifying actionable insights from NPS for customer service is really challenging. As a result, Gartner predicts that by 2025, more than 75% of organizations will abandon the NPS as a measure of customer service success.
That means managers need to build a case for phasing out NPS. We’ll give you a few more reasons to say goodbye to it:
The NPS takes into account factors outside of customer service
The NPS doesn’t provide any actionable insights specifically for customer service at all, because it’s your customer’s response to all factors in the customer journey. That means your customer also includes the price or quality of a product in their assessment.
Customer service managers responsible for the Voice of the Customer (VoC) often already capture the results of CX metrics in their plans.
These results should provide them with actionable insights regarding the successes and failures of the customer service journey that are within their control, or you’ll end up with noise on the line.
NPS isn’t clear enough for customer service agents
For your agents to align their actions with strategic priorities and be willing to put in the effort to achieve goals, they need to understand how to achieve those goals. And they need to be motivated to do so.
But the NPS doesn’t clearly indicate the actions you need to take to positively influence it. The result? Agents find it difficult to interpret how the NPS is related to their performance and really have no idea what to do to improve it.
As you can imagine, that’s incredibly frustrating.
Other CX metrics, such as customer satisfaction (CSAT), the Customer Effort Score (CES) and the Value Enhancement Score (VES), help customer service organizations uncover the root causes of successes and failures.
This in turn leads to more engagement from your agents. When your agents understand how their performance makes a difference and has a positive impact on the customer experience, they are more likely to repeat positive behavior.
NPS wastes time and resources
When evaluating NPS results, you are expected to come up with a justification and a plan of actions to continue strong performance and improve bad ones.
But the lack of understanding of the NPS makes this a difficult task, resulting in a significant amount of time and resources spent digging for feedback, customer journey information and channel performance.
Anything just to get behind that root cause. A real waste of your time, because a review like “the agent was great, but the product broke down quickly” is already worthless and gives a distorted picture.
Take a look at the time spent on your NPS evaluation and contrast it with other CX metrics and the VoC. If all goes well, you’ll see that your time would be better spent capturing specific CX metrics.
The NPS is just not up to date anymore
We actually have to admit that the NPS reflects intentions of your customers, but not their actual behavior. Therefore, it is not wise to rely on one metric to measure performance and loyalty.
There is a risk that you will focus on a single number and that data will be manipulated to achieve desired goals.
However, if management demands that the NPS be measured, it is smart to do so in a way that meets the expectations of customer service managers, but also does not overvalue the importance of the NPS in customer service.