Digital business is outside-in, customer-centric. Net
Promoter is a management tool that can be used to gauge the loyalty of a
firm's customer relationships. It serves
as an alternative to traditional customer satisfaction research and claims to
be correlated with revenue growth. (Wikipedia). There are relational NPS (based
on bi-annual survey) or transactional NPS (based on immediate survey of
service)., etc.
It's worth
considering including a single diagnostic question with NPS along the lines of,
'What is your single biggest reason for
giving this score?', depending on volume of responses and what analytics
you have. This can often drive some
killer insights and help avoid making assumptions about why people scored well
and badly without a full blown equal piece of work. The responses can also
really support any campaigns/ marketing communications that you run for
customer engagement/retention/etc
Analysis of
improvements and using transactional data to drive closed loop and strategic
improvements has to be part of the overall program. An aggregated figure
won't provide the detail needed to identify which parts of the customer journey
need attention or have been revised successfully. It's not all about the
number, most of work involves understanding the data that underlies the number,
but it's important to get it right as it should provide a benchmark to measure
improvement. The relational and transactional NPS scores need to keep separate.
Transactional NPS vs.
Relational NPS: All relationships have good days and bad days, and so the
immediate surveys for transactional NPS give you a view of what your customers
think right now. The bi-annual survey for relational NPS should be used to show
the overall NPS and to keep a check on how well you are doing overall. The immediate surveys should be used
to check and react to things happening right now - are there process problems,
product problems, communication problems. Particularly low scores should be
contacted to discuss their issues to try and turn a detractor into a promoter.
If you get a lot of detractors or neutrals, then you need to look at why and
potentially change something or eliminate the cause.
Sometimes there’re
significant differences between the transactional and relational scores. The
transactional NPS is much higher, because at the conclusion of that event, you
most likely solved a specific support problem for the customer, whereas the
relational took into consideration a series of events/lifecycle that had more
opportunity for both positive/negative experiences and various levels of
expectation. Use the bi-annual as the true test of where the company is at and
use the transactional surveys for where the company is headed. The transactional surveys hopefully
contain a open ended verbatim that allows you to have a better understanding of
what the rating means so you can do further analysis and work to improve the
areas that are identified so that your bi-annual results improve over time.
Use all of the
information, but for different reasons and in different ways. NPS is a
piece but not the entire piece and what it gives you is a great place to start.
At a data level, match these pieces of critical information against your churn,
new sales, up-sells etc and then you really see them come alive. Remember, the
data only drives one to a starting point, you would then want to use the data
for action possibly even identifying
a few customers that you could take a deeper dive with using some contextual
design techniques etc. You have the NPS score, coupled with understanding
the touch point that drove it and the themes that drove it. The combination of
these attributes mapped out over time really helps drive root cause analysis
and what needs to be fixed first and across your entire customer base where are
your first "moments of truth" that you would start plugging away at.
The NPS focus should
not be the all and end all. Whilst NPS is a straightforward metric that
holds companies and employees accountable on how they treat customers, a
blending of a range of research will give you more customer understanding and
the insight to drive the right actions and accountability in the organization, which
should already be driven from the top by a CX executive who provides the right
level of business sponsorship. You should also consider trying to collect
Customer Effort Score and Customer Satisfaction Score and blending that with
NPS, as that gives you a well rounded view of your customers' opinion.
What you
measure depends on a few things - the time at which you are capturing
feedback in the customer lifecycle, the trigger/basis you use for feedback and
your goal. While NPS is an important measure, it is better used as a lagging indicator of
the overall customer relationship across time. As such you should be using
randomly (not just 2x a year) distributed surveys with a statistically valid
sample size to assess the overall relationship and brand perception. This is a
good overall view of how customers see you in the market and closest to loyalty
(likelihood to refer). Also, be cautious of using NPS as a single measure.
If your purpose is to build loyalty for your company/brand, you need to dig a
little further to find out what areas your customers would recommend you over
the competition and where they would not.
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