I’ve lost count of the number of times I’ve been asked to weigh in on an internal debate a Kapiche customer is having about whether they should be weighting their NPS score (similar questions apply to other CX metrics as well).
Reflecting on those discussions, I’ve come to realise that there are good arguments on both sides of the fence. I’d argue, if you’re trying to make a choice between weighted or unweighted NPS numbers, then the answer is always to track both.
Before we dive in, let's start with the basics.
What is NPS Weighting?
Weighting your NPS (or other CX metric) means applying weights to the score such that the score is representative of your customer demographics. This is best understood with an example.
Let’s assume your customer base is 10% men 90% women. For one particular episodic NPS survey, 50% of responses come from men and 50% from women with an overall NPS score of +20. This score is the raw or unweighted score. It’s certainly a valid NPS score, but it isn’t reflective of our customer base. If we were to weight this score, we’d recalculate it by adjusting the contribution men are making to the score down to 10% and the women up to 90%. After doing this, we could find significant shifts in the score.
Usually, you will want to weight by a demographic dimensions of your customer base. Gender is usually a safe choice, but you could also look at alternatives, like age or location. Just make sure you aren’t introducing some unconscious bias in the way you choose to weight.
More recently, there has been some chatter about weighting by revenue. This is a bad idea, because it isn’t very scientific. Instead, you’d be better off trying to assign a dollar value to your NPS points.
So, Weighted or Unweighted NPS?
Both! There are a bunch of reasons why, but one of the most important is so you can see when there’s a big difference between unweighted/weighted NPS (or any other CX metrics). If there is a large discrepancy, this could indicate one (or a few) different issues are at play.
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