Customer experience quality surpasses NPS in correlation to financial performance, customer loyalty and customer satisfaction

Abstract

Customer loyalty and satisfaction drives business. For over a decade, NPS has been touted as the most important measure of loyalty and predictor of business growth, even as researchers have struggled to consistently prove the claim. Other measures of customer experience, loyalty and satisfaction have arisen that challenge the supremacy of NPS, even as hundreds of companies rely on NPS for its simplicity and promise of business growth. Measuring 1605 US-based customers of US publicly traded companies, this study has found that while NPS was positively and significantly correlated with customer loyalty, satisfaction, and financial performance, customer experience quality (CEQ) surpassed NPS in all three measures. The research also showed that CEQ was strongly correlated with NPS, suggesting that the two metrics are synergistic. The findings demonstrate that there is provable value in exploring metrics beyond NPS that companies may be missing and thereby limiting their growth and competitiveness.

The Importance of Customer Focus for Organizational Performance: A Study Focus to an Information and Communication Technology Company based in Indonesia

“…The hypothesis 2 which Customer Relationship Practice was positively affected Production Performance and this result was in line with previous research done by Dekoulou and Trivellas (2017). The hypothesis 3 which Customer Relationship Practice was positively affected Customer Satisfaction and this result was in line with previous research by Bennett and Molisani (2020). While for the hypothesis 4 which Production Performance was positively affected to Customer Satisfaction and this result was in line with previous research done by Abdallah et al (2016).…”