If I never had to hear the words “NPS score” ever again I would die happy.
Let me break down what it is and why it’s fucked.
NPS stands for Net promotional score. It is meant as a measure of how well your business is doing. This is mostly used in hospitality, but I’ve seen it in other industries where a service is provided.
In itself, having a way of measuring how you’re doing based on customer reviews is a good thing. Reviews should have meaning. However, if you are not aware of how the system work, then you might not be thinking it’s a fucked up thing.
Now the people affected is anyone from general manager and down the line. This is usually the people that either deal with the customers directly or the people running the business on a day to day basis. (Note: this is a thing mostly in bigger businesses that have multiple locations, and have the money to throw around but chose not to)
For these people their bonuses is usually connected to the NPS. For the hospitality industry, this bonus is almost a necessity to survive. We are talking maybe another £500 every 3 months, if you reach your target.
Okay so people need to hit their metrics to get a bonus, so what, that’s normal.
Yes I say, that’s fine. It’s good to make sure you’re profitable and that you have a good reputation.
Somethings you as a manager have a direct influence over, we’re talking things like spending money when you have none/ making no money.
However. The nps? People are giving scores without even knowing how the system works.
It gives scored from 0-5 or 0-10. Now a middle ish experience, not good, not bad should be a neutral 3/5 right? Wrong. You give 3 or 5 you are giving a negative score. So what about 4/7-8? That should be decent right? It was a good time. Not the top of the line, but fairly good. Nope. Neutral. You are taking away from the overall score. For a positive rating it NEEDS to be 5/9-10.
Now I don’t mind this being the system, if they were transparent about it. But no system is.
So to calculate your score you take your % of reviews that are positive, and you subtract your % of negative reviews.
There’s some maths here but hold on, it’s simple enough.
4 negative, 4 positive, 2 neutral.
You take your 40% positive and minus your 40% negative.
Your score for this one day is now 0.
Now, most companies set their target to having at a bare minimum 55 as a score.
Say one day no one is doing the reviews, except that one person who had something happen. So now 100% of the reviews of that day is negative. Your score is -100.
And it is a lot harder to get people to leave a good review than a bad. If they have had a negative experience in their mind, you don’t need to ask. People WILL do the little “how did we do?” Questionare and they will pull it down. However, when was the last time you answered one of the “how did we do?” When you’re experience was good or great? You don’t.
It is an uphill battle to make sure that your scores are good, simply because there’s no transparency as to either what the scores are used for, or how it works.
There’s many cans of worms in the hospitality industry, this is one of them.
Because sure on the surface, the nps is an annoying metric, but there is so much more about both how it’s measured, how it impacts the people just trying to make ends meet, and how it affects the morale and the overall performance of the team.