The Biggest Mistake in eNPS Benchmarking

The Biggest Mistake in eNPS Benchmarking

Employee Net Promoter Score (eNPS) can be used to predict the productivity of your company. Studies have shown that a higher eNPS leads to better customer experiences, and thus, creates an increase in growth. The idea behind this is that when people enjoy the work they are doing, they are more focused on their tasks versus doing things like gossiping about coworkers or discussing workplace conflicts. Because of this, they are able to work more effectively and efficiently, which gives customers a better experience and encourages them to return. With an increase in Net Promoter Score (NPS), a measure of customer loyalty and enthusiasm, a company is predicted to profit.

As eNPS becomes more integrated into corporations, more and more people search for ways to use this information to better their company. One of these methods is benchmarking, which is a way to improve performance by comparing specific measurements. In the case of eNPS, many companies compare their scores against their competitors in order to understand how to do better or to stay on top. And although it may seem logical, this may be one of the biggest mistakes you could make.

The Biggest Downfall of Benchmarking

Companies like to know where they stand in comparison to their competitors, and benchmarking allows for this to happen. The idea is that if you’re on top, you’re doing better. But is this really true? Are there other factors that come into play, or is it all really just in the numbers?

As beneficial as benchmarking is, the biggest mistake that is made is the actual comparison of organizations. Just because companies are in the same industry doesn’t mean they necessarily run the same way. Because of this, you can’t really compare them on the same scale. It’s like comparing apples to oranges just because they’re both fruits. At the end of the day, the biggest downfall to eNPS benchmarking is that there are simply too many factors involved.

Benchmarking eNPS relies on a lot of information and circumstances. The number of people in the company. Where the company is located. The actual eNPS survey itself. The frequencies of these surveys, and the list goes on. Because these factors can change at any of these points, it’s very difficult to determine exactly where you stand in the industry. But more importantly, how do you improve if you’re falling behind? If you’re ahead of the competitors, will this encourage you to continuously better yourself? Are the numbers really providing you with the information you need?

The fact of the matter is that you don’t know because benchmarking eNPS is just numbers. It doesn’t give you the reasoning behind those scores, so you don’t really know why you’re ahead or behind. If anything, external benchmarking simply gives you a rough idea of where you might stand, but the results aren’t conclusive. Because of this, we encourage organizations to first focus on bettering themselves, before comparing themselves to others. At least with internal benchmarking, you gain an understanding of why you’re doing better or worse, through the analysis of previous eNPS results.

Getting Started

In order to get started on the road to benchmarking success, start by focusing on yourself.  This means internal benchmarking. It may seem counterintuitive, especially when you want to know how your competitors and the industry are doing, but the best thing to do is to focus on achieving the best for yourself, before comparing yourself to others. As mentioned earlier, there are too many factors when it comes to external benchmarking. However, by concentrating on your own organization, you have a solid premise to base your comparisons upon.
And the most important thing is that it encourages you to continuously work to better your company. To do better than last month, last quarter or last year.

This isn’t to say that you can’t or shouldn’t benchmark externally, but the focus of eNPS benchmarking should be on your company. Only upon gaining a better understanding of yourself can you improve.

Once you know how to properly use benchmarks, it can bring great benefits to your company. Internal benchmarking sets a standard for your organization to surpass or maintain. It is also a way for you to gain a better understanding of your own organization and will help you to develop strategic plans to stay on your A game. All of these things work together to better your organization, which helps to improve the lives of your employees, make your company grow, and increase productivity.

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