NPS BASICS AND BEYOND
Culture Affects NPS Results, But Competition Is Local
Cultural Difference in NPS

Culture Affects NPS Results,
But Competition Is Local

key takeaway

Cultural differences in NPS are real and can be substantial, so CX leaders need to avoid internal comparisons between countries.

Best Practice

When launching a company’s first major customer experience initiative, CX leaders soon face the challenge of providing their first executive reports. It is extremely common that they fall into a specific reporting trap that in turn leads them to waste time and energy. The reporting trap is any table or graph that compares countries’ survey results with each other.

This is not intuitively obvious. Your CEO probably wants countries to compete for the title of CX champion, believing that such competition is appropriate and healthy. She sees that the NPS numbers in Brazil and Mexico are fifteen points higher than in the United States. She sees that those in Japan and the Netherlands are as much as 40 points lower. Now she knows who has to be rewarded and who has to be punished. The problem is that she is simply wrong.

There are enormous cultural differences in the way people respond to customer surveys. Brazilians and Mexicans tend to be extremely generous in their evaluations Australians, Japanese, Korean and Dutch customers tend to be extremely reluctant to give the maximum score. We have seen this play out again and again in double-blind benchmark research in various industries.

These differences apply both to your company and to your competitors. What this means is that your comparisons must be both local and external. It does not matter that your US NPS is 45 while your NPS in Korea is 3. When you are doing business in Korea, you are competing locally, not in the United States. What matters is whether your local competitors’ scores and trends are better or worse than yours.

When we have clients who have difficulty believing this we simply ask them to compare operational performance between their countries. They usually find there is no meaningful difference in such KPIs and come around to accepting that the cultural differences are real.

go beyond basic nps reporting

It’s very common for colleagues and executives to challenge the data from NPS programs, even when these foundational best practices are in place. Those challenges often expose the hard truth that customer experience data is not good enough. Even smart analyses and weighting strategies aren’t enough to overcome the fundamental deficits in the underlying data set. There’s no way around it: You’ll need more complete data to build a program that delivers real outcomes. To get there, download our guide, take our comprehensive training course, or read about the future of NPS.

REPORT

The Complete Guide to NPS Basics and Beyond

TRAINING

Leading an Outcome- Oriented
CX Program

REPORT

The New NPS
Manifesto

REPORT

The Complete Guide to NPS Basics and Beyond

TRAINING

Leading an Outcome- Oriented
CX Program

REPORT

The New NPS Manifesto

ABOUT OCX COGNITION

OCX Cognition delivers the future of NPS. We ensure customer experience success by combining technology and data science with programmatic consulting. In our Insights section, we present a comprehensive and evolving collection of resources based on our research and expertise, collected for CX leaders committed to delivering business outcomes.