Net Promoter Score® is a measure of Customer Loyalty.
It is based on 1 question, that is, “How likely are you to recommend us to others?” Although, seemingly simple, it can reveal a lot about a business’s relationship with its customers. Numr, a customer experience management (CXM) company believes NPS® to be an essential metric for Customer Experience Management.
Since, customer experience depends on customers’ thoughts and opinions, it cannot be correctly measured by Operational (O) data. However, an NPS® survey an effectively capture this emotionally driven feedback. It quantifies both recommendations and loyalty. Ideally, companies should use the Net Promoter data to make everyday business decisions.
COMPANY vs BRAND
Before we get to whether you should measure NPS® for a Company or a Brand, let’s understand the difference between them.
Basically, a company refers to the organization that markets or produces products or services. On the other hand, brands are not simply the products that you buy but ideologies that you buy into. Therefore, it become important for companies to have a distinct brand and make sure that it resonates with the masses.
However, in reality, they often overlap and can be used synonymously.
WHICH SHOULD YOU MEASURE NET PROMOTER SCORE® FOR?
Let’s take the example of a company called PepsiCo. Notably, as of 2015, this company consists of 22 brands. Some of these brands are Pepsi, Lay’s, Gatorade, Doritos, Tropicana, Cheetos, etc. So, measuring NPS® for PepsiCo (a company) would serve no purpose. Usually, a company consists of numerous ‘brands.’ Moreover, customers interact with brands, not companies.
In short, Net Promoter Score® should be measured for a brand, not a company.
Numr uses Net Promoter Score® to create brand advocates (promoters). Today, brand perceptions and superior customer service are incredibly important. For sustainable growth and profit, a singular focus on customers is not an option any longer. It is compulsory.