NPS In the Field: Q&A With Industry Expert Pam Goodfellow

August 31, 2017

If we were to claim our unconditional love for a metric, it would most certainly be the almighty Net Promoter Score. Not only do we share our own NPS on a weekly basis at our company meetings, but we find avenues (such as here in our blog) to write further about it.  

Yet, we know that just us talking about how useful this metric is can seem rather one-sided. That’s why we opened up the conversation to consumer behavior expert Pam Goodfellow, Principal Analyst at Prosper Insights & Analytics.  



Follow Pam on Twitter @pjgoodfellow and see what Prosper Insights is up to @prosperinsights.  

[RELATED: Check out our most recent infographic to learn more about the 2017 NPS Leaders by Industry.]


MF: Can you change the number of options in the NPS question?  

PG: No, the Net Promoter Score® is a standard question, asked on a 0-10 scale. When using the Net Promoter Score® or NPS® terminology, these should be trademarked and sourced as: Net Promoter, Net Promoter Score, and NPS are trademarks of Satmetrix Systems, Inc., Bain & Company, Inc., and Fred Reichheld. For more details on the NPS specifically:

MF: How reliable is NPS?

PG: We find that the NPS® seems to be a pretty reliable indicator of consumers’ enthusiasm for particular retailers or brands. For instance, troubled retailers, such as Sears, tend to suffer from lower scores than thriving retailers, like Amazon.

MF: What is a good NPS score?

PG: I think a “good” NPS® is relative to the industry/ group you are using it within. Certainly, a positive NPS® is one that a company or brand should strive toward.

MF: When it comes to measuring happiness, what is the difference in NPS and customer satisfaction?

PG: I would tend to classify the NPS® as one of the ways to measure customer satisfaction, which certainly can be gauged in a myriad of different methods.

MF: Rich customer experiences are becoming increasingly more popular for companies to get right. It may seem obvious to those who study and research this topic, but how do experiences (good or bad) contribute to NPS?

PG: Certainly, every company or brand strives (or should strive) toward excellent experiences with their customers. Good word of mouth is so important today, especially with consumers engaged in sharing their thoughts and experiences over social media. This is where the NPS® is key: fantastic experiences tend to drive a NPS® and set companies apart from their peers, while bad or “less than” experiences are more likely to have a negative impact on the NPS®. It’s a relatively simple methodology that gives companies and brands a clear idea of where they stand with their customers and among their competitors.

MF: Why is experience so important for companies to have as part of their customer strategy?

PG: Particularly in the retail world, which is becoming increasingly competitive, it’s not just about having the right product at a fair price point – it’s about all of the “extras” retailers can add to create a great experience for customers. These extras could range from excellent customer service, effective communication and problem-solving capabilities with shoppers to quick/free shipping, an easy to shop store or website…the list goes on. And, customers who have great experiences are more likely to return for a repeat purchase.

(Please note, we did not pay Pam or Prosper Insights & Analytics to contribute to this post nor is she or Prosper Insights & Analytics a Alchemer customer.)

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