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"Which is more important? Net Promoter® Score (NPS) or Customer Satisfaction Score (CSAT)"
Wrong question! The correct question is: Which drivers of NPS and CSAT are more important than others?
So! let us get right down to it.
NPS was first discussed by Fred Reichheld in the 2003 Harvard Business Review. It measures customer loyalty and tells you if your customers are likely to promote your company or product or service.
But CSAT has been there forever. It measures customer's (or user's) overall perception about your company and tells you if your company or product or service actually met their expectations.
CSAT depends on your customer's expectations and the critical-to-quality (CTQ) requirements.
NPS predicts potential for renewals, revisits, "come back again", and crowd-sources your referral revenue-stream. CSAT summarizes your company's or product's or service's performance.
Both are business-outcome metrics that are equally important to measure and both relate to Kano's Customer Experience and Competitive Advantage story.
There is a known strong correlation between the two metrics, especially in the tails of their statistical distribution. Causality or "which one causes what" is yet to be determined. High CSAT is likely to result in Promoter status. Low CSAT will push a customer within the detractor and neutral zone. Neutral and Passive makes a dead zone where drivers and behaviors of customers are harder to decipher. In this zone, studying behaviors shown by repeat customer (#bigdata), can provide additional insights.
There are however important business processes and behavioral drivers that are common to both CSAT and NPS.
The important drivers are the following
|
Driver Category |
Drivers for NPS |
Drivers for CSAT |
|
- Standardized Process with room to be creative - Customers have an easy way to share stories |
- Timeliness of response - Average Handle Time (AHT) - Clear hand-offs across functional areas |
|
|
Product Features |
- Intuitive Design - Creative-thinking Skills - Understanding the user |
- Intuitive Design - Understanding how your customer or user uses your products and services |
|
Policies and Programs |
Detractors
Passive and Promoters
|
Dissatisfied
Neutral and Very Satisfied
|
|
Provide unexpected Kano Delighters:
Ability to establish credibility or trusted advisor
|
Empowered and well-trained workforce that provide Kano Satisfiers: Skills
|
Our Games simulate all those behaviors and helps your employees acquire the skills needed to maximize your customer-retention metrics. Our PAKRA Console and Analytics uses game-mechanics that in turn helps your employees adopt the skill faster. Our consulting services helps you acquire a deeper understanding of the actual processes that your customer experiences.
To learn more about our success stories, visit our store.
References:
2. Marketing Metrics: The Definitive Guide to Measuring Marketing Performance. Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; David J. Reibstein (2010). Upper Saddle River, New Jersey: Pearson Education, Inc. ISBN 0-13-705829-
3. Customer Satisfaction Index, Microsoft Partner Network Blog
5. Net Promoter Score (NPS) Criticisms and Best Practices, Vovici Blog, Tue, Apr 28, 2009
9. Podcast Transcript: Driving Customer Satisfaction - What Do the Best Contact Centers Do?, Jeff Furst
10. Measuring your Net Promoter® score, Bain & Company, 2013
11. What's your experience with Net Promoter Scores? Forrester Community Page, 2011
12. 10 Things to Know about Net Promoter Scores and the User Experience, Jeff Saura, April 2012
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