Critical performance indicators are variables used to analyze the performance of a company, brand or product. These are used to measure the success of an organization in general or the success of a particular action or campaign.
NPS, NLS, NTS, CES…but why?
In the world of qualitative experience studies, all kinds of Customer Experience KPIs have been developed. Critical performance indicators are variables used to analyze the performance of a company, brand or product. These are used to measure the success of an organization in general or the success of a specific action or campaign.
NPS
The Net Promoter Score (NPS) is such a KPI and is still very popular. In short, the NPS measures whether your customers will promote you or not. I notice that the NPS is used too often these days. It is now often a topic of discussion whether it is a correct measurement system for international comparisons between the same types of companies in various branches. We “Hollanders” for example, there are less of the American “Wow, it’s amazing” with a corresponding 9 or 10 as a rating. If we give an 8 we are already very satisfied, because “there should always be room for improvement”.
NLS
In addition to the NPS, there is also a loyalty rating. The Net Loyalty Score (NLS). The NLS provides insight into how likely it is that a customer will return to the relevant organization or product. Research has shown that loyalty has a lot to do with local availability, among other things. Sometimes there is a favorable factor, but practical aspects and habituation certainly play an important role. The nearest garden center is often the one you go to when a watery spring sun breaks through, isn't it?
It is increasingly recognized that customer retention is also very important, as opposed to constantly chasing new customers. That is why a lot of companies are responding to this. If you are loyal as a customer, you will be rewarded. The longer with the club, the more appreciation. The NLS measures to what extent this is actually experienced by consumers.
Loyal behaviour, as we know it now, seems to be decreasing due to continuous innovations, the online offer and people's more individual attitude to life. People used to want to belong to a club, but that is fading and people are constantly adjusting their standards.
The ideal customer
A combination of a high NPS and a high NLS would be the ideal client. These customers are always promoting you and will never let you down. They are actually “married” with your brand, product or service. But can such a marriage last forever today? There are so many temptations lurking and all developments are happening at lightning speed. For example, consider car brands. People used to drive a car and that gave a certain status. This is of course still the case, but if you have become more environmentally conscious over the years, you may still switch because of the innovations of recent years. If as a car dealer you only have a score from a quality measurement and not the actual reason why someone left, then you are left guessing. The “why” behind such a score gives you so much more insight.
NTS
There is also a KPI for trust, the Net Trust Score (NTS). This score reflects the level of customer expectation to what extent the organization fulfills agreements and promises. She fulfills these in a way that is in the best interest of the customer. This KPI is often a guideline for the banking sector. Due to all CSR developments within organizations and the importance that consumers attach to this, this KPI can also be found increasingly in other sectors. Trust is a foundation for satisfaction and loyalty, which is relevant for every customer-oriented organization. A high NTS is then an extension of the NPS and NLS or is it the other way around? All the KPIs mentioned are ultimately determined to a greater or lesser extent by the behavior of the employees involved. Customer friendliness determines so much. And customer-friendliness is difficult to measure quantitatively. Here too the “why and how” behind an answer an important role.
CES
A KPI that actually says something about the extent to which the customer has experienced comfort during a visit or when using a product or service is the Customer Effort Score (CES). This score also says something about the problem-solving and anticipating capacity of a company in the field of service provision. This score is an important one in the online world. If you place an online order and everything goes well, there is little interpersonal contact. The systems do the work. If something goes wrong somewhere, then human behavior suddenly reappears and all this is decisive here too. How did this company solve the problem? What have they done? Why did you experience it that way? All questions that cannot only be answered with a simple “yes” or “no” to be answered. You want an explanation as an organization to know how you can do better next time or to hear who has earned a big compliment within your organization and especially why.
It turns out that the loyalty of a loyal customer is determined by the feeling they have about a service or product. A departing customer often does this out of dissatisfaction with the quality of service. If there has been a negative experience and it has certainly not been resolved adequately, you may suddenly have a disloyal customer. And unfortunately it often leaves, even when the NPS, NTS and NLS are high. Do you still follow it? I always have the same reaction to all this information: Behind every number there is a personal experience, an experience, a real story.
The 'why' question
Numbers are fun and certainly useful, but the why behind a number is much more important to know. Certainly also for the people who provide the service or manufacture the product. They can learn something from this or give each other a compliment. So make sure you always find out the why and share this with your people. That says so much more than any number.