But is this single metric all that is needed to monitor the success of a company or its products?
The primary purpose of the NPS methodology is to evaluate customer loyalty, but it is often used in lieu of, or as a complement to, customer satisfaction research.
Without follow up questions, it is nearly impossible to understand what factors account for the ratings. Therefore, it is common to further explore the reasons or experiences behind the feelings of one’s customers as well as to analyze them by their demographics (age, gender, income, location). This can be accomplished with open ended questions (e.g. a box for “comments”) or with a series of multiple choice questions, or a combination of both.
In the previous examples, an office product or store selling mostly commodity type products might have a majority of customers who are Passive about a company or its products. On the other hand, customers who are asked to recommend a particular coffee/fast food chain or credit card might have a much greater or lesser degree of loyalty.