Forrester Questions NPS As Best CX Metric
Forrester suggests NPS may not be the best CX beacon metric, and its use can be misleading if not aligned with business goals. The company advises a more thoughtful approach to selecting a CX metric.
Original reporting · forrester.com
Original: “Is NPS Still The Best CX Beacon Metric?”
Read “Is NPS Still The Best CX Beacon Metric?” at Forrester →
How this was written. The 5:45 Ops Desk wrote this article with a language model from Forrester’s reporting (model: @cf/meta/llama-3.3-70b-instruct-fp8-fast); it describes that reporting rather than adding to it. The original, linked above, is the full story.
Key points from Forrester’s report
- Forrester suggests that NPS may not be the best CX beacon metric for every organization.
- The company advises a more thoughtful approach to selecting a CX metric, starting with defining the CX objective.
- The wrong beacon metric can distort CX progress and lead to misleading conclusions about the effectiveness of CX efforts.
Forrester reported that most organizations choose a CX beacon metric based on what is considered a 'best practice' or what can be easily benchmarked. However, this approach can lead to a metric that does not align with the company's business goals or CX objectives.
According to Forrester, a better approach is to first define the CX objective and then identify the metric that provides the necessary evidence to measure progress. The ability to benchmark should be a secondary consideration.
The company warns against letting a 'best-practice' beacon metric define the strategy, as this can lead to vague and unmeasurable goals. Forrester cites performance measurement expert Stacey Barr, who notes that ambiguous goals are hard to understand and measure.
Forrester advises companies to push back on executives who provide vague direction, such as wanting to be 'customer-centered' by a certain date. Instead, leaders should define what this aspiration means for customers and the business and turn it into concrete CX performance objectives.
The wrong beacon metric can distort CX progress, even if the CX objective is clear. Forrester notes that NPS, CSAT, or another established measure may be right for an organization, but it becomes a liability if it doesn't meaningfully represent the CX objective and connect to business outcomes.
To select the right CX beacon metric, Forrester recommends using its Excel tool, which guides companies through answering five key questions, including whether the metric aligns with business goals and is practical to use.
Forrester clients can also request an analyst call to discuss the selection of a CX beacon metric in more detail. The company's report, How To Select The Right CX Beacon Metric, provides additional guidance on this topic.
Questions and answers
What is the problem with choosing a CX beacon metric based on 'best practice'?
This approach can lead to a metric that does not align with the company's business goals or CX objectives, and can result in vague and unmeasurable goals.
How should companies select a CX beacon metric?
Forrester recommends defining the CX objective and then identifying the metric that provides the necessary evidence to measure progress, using its Excel tool to guide the process.
What are the risks of using the wrong CX beacon metric?
The wrong beacon metric can distort CX progress, even if the CX objective is clear, and can lead to misleading conclusions about the effectiveness of CX efforts.
