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  • Writer's pictureYourCXC

NPS & NLS, a match made in heaven?

Updated: Apr 3


NPS NLS

We are sure you are familiar with the Net Promoter Score or NPS, but did you know there is a Net Loyalty Score (NLS)?


NPS is a metric that gives you insight into which customers would recommend your brand, but NLS focuses even more on customer loyalty.


NLS stands for Net Loyalty Score, and it is about a metric that is so important for customer experience and a brand's sustainability through customer experience; loyalty.


This metric measures to what extent the customer is inclined to return to your company. In other words: how loyal is the customer to your company?


We have repeatedly stressed that the critical outcome of a compelling customer experience is loyalty, which creates return business and avoids the pitfalls of extreme marketing budgets to bring in new business and prop up the balance sheet.


There is yet to be one standard question for the NLS. Several options include:

'On a scale of 1 to 10, how would you assess your loyalty to (company X)?

or;

'On a scale of 1 to 10, how likely will you return to (company X)?


As with NPS, the NLS has three groups of respondents. Detractors, passives and promoters. The eventual score is calculated similarly by subtracting the detractors from the promoters.


So the NLS is more about your existing customers and keeping these customers.


Not so long ago, achieving a positive NLS score was commonplace. Then, the emphasis on businesses was to capture customers and maintain a relationship that kept them returning.


With the dot.com age and the dependence on mobile phones, brand reach has increased, ballooning profits from new customers but causing businesses to neglect their existing customers. Business owners have become too short-sighted, striving for immediate large profits. Have brands yet to think about the reputation that spawns? PUMP & DUMP.


For NLS to be a key metric for a business, the philosophy must be one of customer experience, looking after your existing customers, so they return. It doesn't take rocket science to look at purchasing trends and see that satisfied customers return and increase their basket value on the second visit. Now think about that!


If your business would like help navigating customer experience in 2024, get in contact with us to discuss further: experience@yourcxc.com

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