NPS Scores vs Reputation Management Solutions | Binary Fountain

September 11, 2019

NPS Scores vs Reputation Management Solutions

By: Alex Hay

nps scoreFor many years, companies have relied on Net Promoter Scores (NPS) to measure customer satisfaction, engagement, and sentiment towards their organization.

While NPS is a great tool for measuring the difference between positive and negative sentiment, NPS does not give you the complete picture you need to make data-driven decisions for improving your operations, product, and reputation. Looking at your reputation management score and your NPS will give you the actionable insights you need to deliver better customer service and continue to build brand loyalty.

We will look at the differences between reputation management and NPS and how to leverage them to get the most value for your organization.

What are Net Promoter Scores?

Net Promoter Score is a single metric measuring the difference between your company’s promoters and detractors.

In other words, it’s the difference between the people who are willing to highly recommend your business minus the people who have a negative sentiment towards your business. This gives you a singular metric on a hundred-point scale to assess your current customer engagement.

Higher scores reflect an organization’s ability to not only exceed customer expectations but limit the number of detractors. For example, if your company has 72% promoters, 10% neutral and 18% detractors, your NPS is 54 (72-18).

Benefits of Paying Attention to NPS Scores

There are many benefits to tracking your NPS score.

It’s a pretty simple formula that everyone in your organization can understand, which makes it approachable for even the most data averse.

NPS can tell you if the people who didn’t recommend your business are truly unhappy (detractor) or just wouldn’t recommend you (neutral). That is valuable because it can help inform just how negative your overall reputation is in the marketplace or if you are just barely meeting expectations.

In other words, you get a quick picture of just how many people are lukewarm to your business vs. highly frustrated and unlikely to recommend you to a friend or colleague.

Why NPS Scores are Incomplete

Net promoter score can be a very valuable tool, but it doesn’t give organizations the level of detail they need to make truly informed business decisions. More data points are needed to better understand how to improve your operations and ultimately meet customer expectations.

Additionally, a higher NPS score used to be a go-to measure of consumer engagement, especially in retail businesses. Today, however, most customers use star ratings and third-party review sites to choose a business or product.

Knowing that 20% of your customers are detractors is useful, but it does not help you develop strategies to correct the issues.

How Are Reputation Management Solutions Different?

Reputation management solutions often include a lot of different components aggregated into a singular platform. Typically, this platform is going to help organizations:

  • Create and publish star ratings from multiple platforms
  • Increase engagement by responding to reviews and social media
  • Improve customer sentiment
  • Boost total review volume
  • Build a better employer brand by listening to employees

As you can see, this is a much more comprehensive list of KPIs that your organization should focus on rather than a pass or fail metric. This is what gives you a much clearer picture of what you need to work on to improve your customer experience.

Note: Every industry is going to be a little different. For example, healthcare organizations will want to measure physician communication or ease of appointments as a KPI, while a restaurant may look at food quality or server attentiveness as their success criteria.

Reputation Management Solutions vs NPS Score

In order to make truly data-driven decisions, companies need deeper and more comprehensive insights into what areas of frustration customers are feeling.

Unlike an NPS score, which gives you a high-level view of if you are doing something right or wrong, a comprehensive reputation management solution gives you a clear picture on what is working or not working for you, and will usually give you the ability to compare your success to your competitors.

For example, a 3.8-star rating allows you to analyze the component information provided in online reviews, which can then be used to improve your areas of deficiency and get the leg up on your competition.

Simply put, a reputation management solution gives you a holistic view of your businesses’ reputation that provides the actionable insights you need to improve the customer experience that NPS doesn’t cover.

Do You Want to Improve Your Online Reputation?

Managing your online reputation can be a difficult task if you don’t have all the right tools at your disposal. Your staff does not have time to review all the comments customers are making about your business online. And if they do see some, they don’t know how to categorize the comments for review and action.

Reputation management solutions make keeping track of all of your online reviews easy by automating the process and putting all of your review data in one place and giving you real-time reporting for your convenience. You can quickly see if your areas for improvement are problems with things like quality, accessibility, communication, facilities, or staff attitude because we can provide comparison information for other organizations.

About the Author

Alex Hay
Content Marketing Specialist

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