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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.