Why Stop at NPS?
Ever since Fred Reichheld created the Net Promoter Score® (NPS®) in 2003, the metric for measuring customer loyalty and satisfaction has been widely used by credit unions today. This metric may be frequently referred to as the “Ultimate Question”, but this doesn’t mean that it should be the ONLY question. While your Net Promoter Score® can certainly reveal a great deal about your members, here are three reasons you shouldn’t stop at NPS®:
Reason #1: NPS Doesn’t Tell You WHY
As popular as this metric is today, the NPS® system still has a few pitfalls. Sure, it may help you identify a member as a Detractor, but why exactly is this member considered a Detractor? What can your credit union do to turn this Detractor into a Promoter? These questions can’t be answered by simply looking at your score. You may be able to tune up your NPS® to make it more effective, but there is only so far you can go with this metric.
Reason #2: Different Goals Require Different Metrics
Not every credit union has the same goals and may use different metrics to obtain the information that they need from members. NPS® is a great way to get a sense of how a member perceives your credit union overall, but what if you want to know how they feel about a specific transaction in real-time? For this goal, credit unions might supplement their NPS® with the Customer Satisfaction (CSAT) metric. This allows credit unions to measure an individual interaction more accurately and help them gauge how happy their members are with their services.
Another popular metric is the Customer Effort Score (CES), which measures customer loyalty by asking how much effort a member had to put forth in a request. Rather than “delight” your members with outstanding member service, simply reducing the amount of effort a member exerts in a request could be a better indicator of their loyalty. Whether or not this metric will work for you will depend on the specific goals of your credit union.
Reason #3: Promoters Aren’t Always Quick to Recommend Your Credit Union
Perhaps your credit union received a 9 or a 10 from a respondent, making them a Promoter. But will they actually recommend your credit union to others? The problem with the NPS® system is that it only measures the likelihood that someone will recommend—not how many actually do recommend. Proponents of NPS® aren’t too concerned with this, as the metric is still a good indicator of how members feel about your credit union. However, using more than just NPS® can give you a better sense of how loyal your members truly are.
Improve Your Credit Union with More Than NPS
Your NPS® is an important number to know, but it isn’t the only one that your credit union needs. Rather than use it as a standalone metric, credit unions should go past their NPS® and implement other measures to more accurately assess their member’s loyalty. If you want to get better feedback in real-time and improve your credit union’s performance, contact CU Wireless today for more information!