How to be sure you're not using NPS incorrectly

Mike Jacoutot, Founder and Managing Partner

Here is a recent conversation we had with an Office Systems/Managed IT CEO around the incorrect use of the Net Promoter Score® Survey:


CEO: We already use NPS® and our scores are off the charts! We score between 89 and 91 consistently.


Mike: Wow, those numbers are higher than Apple and USAA Insurance! Can you share with me exactly how and when you are surveying your customers?


CEO: It is part of our CRM system. We survey our customers immediately following every service call.


Mike: Is there any other time you survey your customers using NPS.


CEO: No. Not that I am aware of.


Mike: Unfortunately, you are only harnessing about 10% of the power of the NPS survey when you do it this way. Here is how NPS was designed and how you can experience the full power of it.


That was a tough conversation to have. But once we explained the following to the CEO, he had us administer the survey. 


He watched his score plummet by 50 points.


NPS® is different from other benchmarking surveys such as customer satisfaction score or customer effort score because it measures the customer's overall sentiment about their experience with your company, versus their perception of a singular interaction or purchase. 


Measuring after each service interaction only measures that portion of your company. It would be like measuring your spouse or significant other after each meal they cooked. You would get a good picture of them as a cook, but what about the overall relationship? Therein lies the problem.


If used properly, NPS helps your company evaluate your customer loyalty -- and the likelihood of them recommending to a friend you to a friend or colleague. 


In this day of Internet “clutter,” LinkedIn states that 84% of deals won today started with a referral.  Using NPS properly helps evaluate the likelihood of customer defection -- not repurchasing and seeking out a product or service from a different company


Unfortunately, the opening exchange is a true story that has been repeated time and time again all over the country and in particular the office systems/ managed IT space.


At Butler Street, we are approved/licensed providers of Net Promoter Score Survey. We not only administer the survey on your behalf, but because we have used the survey for thirteen years ourselves, we can show you:


• How to leverage actionable insights to acquire new customers

• Expand into existing customer

• Save those unhappy customers that have one foot out the door. 


Learn more or have a conversation with a
Butler Street NPS Expert 

for more information.

"LinkedIn states that 84% of deals won today started with
a referral"
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