Net Promoter Score pros and cons: Why use NPS?
What do customers really think of your brand or products? Do they like you enough to recommend you to their friends? How likely are they to purchase from you again?
As a customer experience (CX) professional, these are crucial topics. After all, if customers aren’t satisfied with the service they received or don’t like your products, chances are, they won’t be repeat customers.
To top it off, with the ease of social media reviews, they could instantly share a negative experience with hundreds or thousands. As you’re probably already well aware, it’s definitely in your best interest to understand your customers' opinions and quickly address gaps that are causing dissatisfaction.
That’s where the Net Promoter Score® (NPS) comes in. In this article, we’ll explore the pros and cons of NPS and touch on the following areas:
- Why is Net Promoter Score important?
- Advantages of NPS
- Disadvantages of NPS
- NPS alternatives
- When to use NPS versus Customer Satisfaction Score (CSAT)
Net Promoter Score: Pros and cons
A simple way to understand your customers’ level of loyalty is to send out a Net Promoter Score (NPS) survey to your customers. The NPS system measures customer satisfaction and gauges whether customers like your company—and if they’d tell their friends about it.
It does this by asking one core question: “How likely are you to recommend [Organization X] to a friend or colleague?”
Customers rate their answers on a 0-10 scale. You then divide this scale into three categories: “detractors,” “passives,” and “promoters.”
- Those who respond “0-6” are detractors
- Those who respond “7-8” are passives
- Those who respond “9-10” are promoters
You can figure out your NPS by using the simple Net Promoter Score calculation, NPS Calculator, or using this formula:
