NPS, a powerful method to measure customers loyalty
NPS is probably the most respected survey question you can use to measure the loyalty of customers to a company. Developed in 2003 by industry researchers working closely with universities, NPS is now used by millions of businesses worldwide—restaurants, retailers, hotels, airlines, amusement parks, even sports teams—to measure and manage customer loyalty.
NPS uses the question at the top of the this post to get a 0 to 10 answer from each customer. Based on those responses (and using some straightforward arithmetic), we can derive an NPS score for the entire customer experience. But we can measure just about anything using an NPS score: cleanliness, food quality, location, friendliness … even customers’ feelings about how much flair your hosts are wearing (inside joke for Office Space fans!)
There’s no doubt that NPS is amazing tool to measure CX and loyalty. But, if you’re going to use it properly, you need to understand what NPS DOESN’T do. NPS is a statistic, a diagnostic measure: it can tell you WHAT’S happening in your restaurant, but it doesn’t give you any specifics about WHY it’s happening. NPS is a bit like pain in your body: you know something’s wrong, but without a trip to your family doctor, you’re not quite sure about what’s causing the pain.
Unless you complement it a bit, it can be very hard to take action on NPS.