What is NPS and how does it work?
Net Promoter Score (NPS) is a widely used metric to measure customer satisfaction and loyalty. It’s simple, yet powerful. NPS asks customers to rate their likelihood to recommend a company to friends or colleagues on a scale of 0 to 10. These scores are then categorized into three groups: Promoters (9-10), Passives (7-8), and Detractors (0-6).
NPS is calculated simply by subtracting the percentage of Detractors from the percentage of Promoters. The result is a score that can range from -100 to 100. NPS provides companies with clear insight into customer loyalty and helps identify areas for improvement. If you want to improve your NPS, it is important to listen carefully to feedback and take action.
What is CES and how does it work?
Customer Effort Score (CES) is a metric that measures how easily customers can achieve their goal when they contact a company. The CES question is typically, “How easy was it to resolve your issue?” Customers rate this on a scale of 1 to 5, with a lower score indicating a better outcome.
CES focuses on reducing the effort customers have to put in to get their issues resolved. The lower the effort, the more likely customers are to be satisfied and return. Companies that use CES can better understand which processes need to be improved to make the customer experience smoother.
Why is NPS important for companies?
NPS is important because it helps businesses understand how loyal their customers are. A high NPS means that customers are willing to recommend you to others, which can lead to organic growth and stronger customer loyalty. It is a direct indicator of customer satisfaction and can help identify your most satisfied customers, the Promoters.
Companies that use NPS effectively can transform customer feedback into improved services and products. By listening to and responding to the voice of the customer, companies can continuously improve their service and achieve greater customer satisfaction. Gain real-time insight into your NPS with our predictive analytics tools.
Why is CES important for businesses?
CES is crucial because it focuses on the ease with which customers can handle interactions with a company. By minimizing customer effort, companies can improve the overall customer experience, leading to higher satisfaction and loyalty. CES helps companies identify where customers are struggling and provides opportunities for process improvement.
Low customer effort can also drive repeat purchases and encourage customers to generate positive word-of-mouth. By measuring CES, companies can make targeted improvements to their customer journey, making the customer experience smoother and more enjoyable.
How do NPS and CES differ from each other?
NPS and CES both measure aspects of customer satisfaction, but focus on different areas. NPS measures customer loyalty and likelihood of referral, while CES measures the effort customers have to put in to successfully complete an interaction. Both metrics offer unique insights, but are not entirely interchangeable.
NPS focuses more on the emotional engagement of customers and their tendency to recommend a company, while CES focuses on the practicality of the customer journey and how easy it is. It is important to consider both metrics to get a holistic view of customer satisfaction.
When should you use NPS and when should you use CES?
Using NPS is recommended when you want to measure your customer loyalty and gain insight into their willingness to recommend your business. It is especially useful for identifying your most loyal customers and getting feedback on your overall service and product offering.
CES, on the other hand, is useful when you want to understand how smoothly the customer journey is going and where customers are struggling. CES is ideal for improving the efficiency and effectiveness of specific customer-facing processes and interactions. Both metrics can complement each other, depending on your specific business objectives.
What are the limitations of NPS and CES?
While NPS and CES provide valuable insights, they also have limitations. For example, NPS can be affected by external factors that have nothing to do with customer satisfaction, such as market conditions. It also does not provide specific details on which aspects need improvement.
CES can sometimes focus too much on process, without taking into account the emotional aspects of the customer experience. It is important to recognize these limitations and use both metrics as part of a broader customer satisfaction program. To learn more about how to integrate CES into your facilities management, visit our facilities management page.
How can NPS and CES be used together?
By using both NPS and CES, companies can gain a comprehensive picture of customer satisfaction and loyalty. NPS helps identify loyal customers and provides a general picture of customer satisfaction. CES ensures that you understand how easy customers find their interactions with your company.
By using these scores together, companies can make targeted improvements that enhance both the emotional and practical aspects of the customer journey. This combined insight helps organizations be proactive in improving customer experiences and build a strong, loyal customer base. Want to learn more about how we do this? Check out our solutions to learn more.