The Net Promoter Score (NPS) has become a cornerstone of customer experience (CX) measurement, with two-thirds of Fortune 1000 companies relying on it to gauge customer satisfaction and loyalty. While NPS can provide valuable insights, it has significant limitations that can lead to misinformed CX strategies if relied on too heavily. From overlooking passive customers to failing to link with financial performance, NPS alone does not offer a complete picture of customer behavior.
Limitation #1: Used everywhere but does not represent all your customers
A major limitation of NPS is that it only reflects the views of customers who respond, often leaving a large portion of the customer base unrepresented. In industries like B2B, where personal recommendations may not be relevant, the NPS score may fail to capture accurate customer sentiment. Many customers who don’t respond to NPS surveys whether indifferent, content, or unhappy are effectively invisible in the data.
This creates a skewed picture. Companies relying heavily on NPS might assume they have a clear view of customer satisfaction, when in reality, they’re only seeing a fraction of the overall experience. Worse, if surveys are conducted annually, important shifts in customer sentiment might be missed, leaving businesses blind to potential problems until it’s too late.
To counteract this, businesses must broaden their feedback collection beyond NPS to ensure more comprehensive and real-time data.
Limitation #2: Passive Customers are simply ignored, yet it’s where the potential is
Passive customers those rating 7 or 8 are often overlooked in favor of promoters and detractors. However, passives represent a crucial middle ground. Though generally satisfied, they lack strong loyalty and are more likely to switch to competitors if not actively engaged. Harvard Business Review reports that 20% of passives are considering leaving, making them a high-risk group.
Unlike detractors, passives can be converted into promoters with relatively minor improvements, such as personalized services or product enhancements. Ignoring this group is a missed opportunity to increase customer loyalty with minimal effort.
Why you should focus on passive customers:
- Risk of churn: Despite their silence, passives are at high risk of leaving. Engaging them early can prevent churn and improve retention.
- Easier Conversion: Passives are much closer to becoming promoters than detractors, and targeted improvements can quickly boost their satisfaction.
Limitation #3: It’s hard to link strong NPS with Financial Outcomes
While high NPS scores are generally seen as positive, there isn’t always a direct correlation between NPS and financial growth. According to CX expert Tatyana Mamut, NPS should be part of a broader customer intelligence system rather than a stand-alone indicator.
“NPS should help move customers along a commitment curve, but it’s just one part of the bigger picture.”
Tatyana Mamut.
To better understand this, consider a company with a consistently high NPS score. They might assume this means financial success, but reality can differ. Loyal promoters might love the brand, yet their buying habits or referrals may not contribute significantly to the company’s bottom line. On the other hand, detractors could still make large purchases out of necessity, regardless of their negative feedback. This mismatch between sentiment and financial outcomes can mislead companies.
Differences between NPS and financial performance :
- Sentiment vs. Revenue: NPS measures customer sentiment, but satisfaction doesn’t always lead to increased spending or referrals.
- Promoters vs. Detractors: Promoters might love your product but not generate additional revenue, while detractors may still make purchases despite their dissatisfaction.
Limitation #4: NPS without context is poorly actionable
While NPS provides a quick score, it doesn’t explain why customers feel the way they do. Without this context, businesses are left with a number but no clear direction for improvement. For instance, if your NPS drops after a new product launch, the score alone won’t reveal if the issue is with the product itself, customer service, or delivery delays.
To make NPS more actionable, companies need to combine it with other data, such as customer service feedback or CRM insights, to better understand the cause of low scores. Segmenting the data by customer type, region, or interaction point can also provide clarity. If scores are lower after customer support calls, for example, you’ll know where to focus your efforts.
Adding this context allows businesses to act more effectively and respond to real customer needs, rather than just reacting to a score.
Limitation #5: NPS question involves cognitive biases
The design of NPS surveys can unintentionally introduce cognitive biases that affect how customers respond. These biases can distort the feedback, giving a skewed representation of customer satisfaction. Several factors can influence this:
- Color influence: Using green for high scores and red for low scores may nudge customers toward giving more positive ratings.
- Anchoring bias: The order of questions can set a tone that affects how customers respond to the NPS question.
- Leading language: Phrasing questions in a way that suggests a particular answer can bias the results.
For example, if an NPS survey begins with a question like “How satisfied are you with our excellent customer service?” it may lead customers to rate their experience more positively. This can inflate the NPS score, giving businesses a false sense of customer satisfaction.
To reduce bias, use neutral colors, randomize question order, and ensure the language is neutral to gather more accurate feedback.
Limitation #6: NPS score by itself doesn’t reveal long-term trends
NPS provides a snapshot of customer sentiment at a specific moment, but it often fails to reflect long-term customer loyalty. A customer may give a high score after a single positive experience, but this doesn’t guarantee they’ll remain loyal in the future. Similarly, detractors might give low scores based on recent frustrations, even if their overall relationship with the brand is stable.
To address this limitation, businesses should measure NPS at multiple touchpoints throughout the customer journey, not just once a year. Regularly tracking NPS after key interactions such as purchases, support calls, or product updates can offer a more accurate picture of customer loyalty over time. This ongoing feedback helps companies spot trends and take action before dissatisfaction leads to churn.
