Moving the NPS Needle - How to Use Customer Feedback to Drive Improvement

Transcription

1 Moving the NPS Needle - How to Use Customer Feedback to Drive Improvement

2 Content Introduction: NPS for the Digital Enterprise 3 Chapter Three: Taking Action with Net Promoter Online 12 Chapter One: Vanity Metric or Actionable Feedback? 6 Chapter Four: Driving Change with Ongoing Accountability 14 Chapter Two: Authenticity and Reliability 9 Conclusion: Net Promoter Online Driving Business Success 17 2

3 Introduction NPS for the Digital Enterprise With increased access to information and transactions across both online and traditional channels, customers expectations have grown as well. Consumers value digital enterprises and organizations that empower them to execute tasks quickly and efficiently. They are quick to turn to social media when a business fails to meet their expectations and equally quick to turn to other providers who are just a button-click away. In today s digital marketplace, more than ever, customer satisfaction and loyalty are the keys to good business results. NPS has become the metric of choice for measuring and benchmarking customer satisfaction and loyalty. Now, the pressures of today s business environment call for more sophisticated ways to leverage NPS to drive business success, not just to measure it. Prioritize customer-centricity throughout your organization Get actionable insights from NPS by combining it with customer data and feedback Efficiently share NPS information within the enterprise to increase accountability Apply NPS data to inform decision making and drive digital growth. In this e-book we show you how to upgrade your NPS program to yield tangible value for your digital enterprise. 3

4 NPS for the Uninitiated How NPS is Measured The Net Promoter Score, commonly referred to as NPS is a customer loyalty and satisfaction metric 1. It has been widely adopted by leading enterprises such as Amazon, American Express, Apple, Cisco, Dell, and ebay among others. Measuring NPS is easy. Customers are asked, On a scale of 0-10, how likely is it that you would recommend Company X [or Product X] to a friend or colleague? The percentage of Detractors is then subtracted from the percentage of Promoters. The difference is your Net Promoter Score. Respondents are then segmented into 3 groups: Detractors (0-6) Passives (7-8) Promoters (9-10) Net Promoter Score = % Promoters - % Detractors 1 Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld. 4

5 The Impact of NPS Extensive research by Bain & Co. indicates that the NPS question is successful in predicting customer behavior in areas such as: Customer loyalty and retention Repeat purchases or transactions Referrals, recommendations and word-of-mouth NPS is more than a simplified performance indicator of customer satisfaction. It also helps management to get a quick and accurate picture of corporate health. Studies have shown: A direct correlation between NPS and business success. Companies with long-term profitable growth have Net Promoter Scores two times higher than other businesses. Companies with high scores have an average growth rate of twice that of their competitors. Adding to the Popularity of NPS With just one number, NPS is easy to understand. NPS focuses your entire enterprise on the overarching goal of customer satisfaction. As an open-source metric NPS is easily adapted to the unique needs of your organization. A strong correlation between NPS and the success of your business make it a worthy metric to work on. The NPS methodology enjoys high response rates as it is short and mindful of customers time (only one main question and possibly one or two follow-up questions). 5

6 6 Chapter One Vanity Metric or Actionable Feedback? A Critique of NPS NPS has been criticized for only measuring the likelihood of customer recommendations without identifying organizational problems or providing direction for improvement. As a result the metric s proponents 2 are now recommending what Kampyle calls closing the feedback loop. By gathering more detailed feedback, the why behind customers lack of satisfaction is revealed, enabling an informed strategy for converting Detractors into Promoters. Net Promoter Online offers enterprises looking to use NPS for their digital assets a platform for asking the right questions in the right way, digging more deeply into data, and taking appropriate action with their newfound knowledge Reichheld recently republished his updated book The Ultimate Question 2.0: How Net Promoter Companies Thrive in a Customer-Driven World. 6

7 //Chapter One// The Ultimate Question Done Right While the standard NPS recommendation question is important, follow up questions are critical in discovering what drives the customer to be a Promoter, Detractor or Passive. It is challenging to extract insights from unstructured data. However free-text customer feedback holds the key to making the changes that lead to increased growth. The experience of Kampyle clients using Net Promoter Online shows the maximized value that is gained from categorizing feedback and analyzing frequently appearing themes. Enriching Net Promoter with Customer Data In all industries, companies are interested in retaining and growing their market share by exceeding their customers expectations. However, each investment made to improve user experience must make sense from a ROI perspective. As not all customers are equal, those that bring the maximum value are the ones that need to be catered to the most. By segmenting the various profiles of Promoters, Passives, and Detractors, you can determine if investing in improving the experience of any given customer group will create a healthy profit margin. When we incorporated NPS in the Kampyle online feedback platform, we gained a comprehensive, high-level view of our customer satisfaction level, along with the granular and actionable details behind it. This allows us to confidently make the changes necessary to improve the Swisscom customer experience and raise our Net Promoter Score. Markus Eberhard, VP, Online & Cross Channel Development, Swisscom. 7

8 //Chapter One// Putting NPS to Work Making customer experience a priority within your organization is essential for targeting a generation of well-informed customers who take their business wherever the overall experience pleases them the most. Managing Net Promoter Online for our clients has proven that NPS can be an actionable metric. Enterprises which have adopted NPS as their KPI of choice, and are integrating it with additional online feedback, are well positioned to gain unprecedented visibility into the sentiment of their target market. Driving ROI with Customer Segmentation Enhancing customer experience can be a costly investment. That s why businesses carefully evaluate the ROI each customer segment can potentially yield when deciding where to allocate resources and funds. The following are common characteristics that companies use to segment Promoters, Passives, and Detractors: Net Promoter Online incorporates customer segmentation, additional user data, and most importantly feedback which identifies root causes. This fully equips you to take action, make the necessary changes to increase customer satisfaction and ultimately, grow your overall ROI. Demographic group Geographic region Language Purchase history 8

9 Chapter Two Authenticity and Reliability All surveys, including Net Promoter, face the major issue of reliability and authenticity of data. There are concerns that sample sets are not representative, or that some sort of bias has crept in. Traditional phone, in-person or -based surveys, in both B2B and B2C environments, are susceptible to the following problems: B2B Environment Traditional surveys are too long for executives or key managers usually the target of these surveys. They either ignore the surveys entirely or pass them on to employees who are not equipped to properly answer them. Distributors or others in the supply chain might be hesitant to voice negative opinions about their suppliers or partners, for fear that they might be penalized in some way. 9

10 //Chapter Two// B2C Environment When using paid surveys there is the risk that responses are not authentic or representative as respondents participation could be motivated by financial incentives. Relevant interactions or experiences might have occurred days or even weeks before. This increases the chance that specific details will be hazy or completely forgotten. Employees such as sales or support representatives, collecting NPS feedback regarding their own performance, have been known to manipulate the results. Online Environment When operating in the online environment, the myriad customer touchpoints and interactions present a unique challenge. Traditional surveys even when delivered online can t accurately and reliably capture a true snapshot of the customers satisfaction level during every point of their online journey. By asking too many question surveys are not respectful of customer time constraints. By covering too many topics, surveys lose relevance to the individual customers digital journey and personal experience. Employees might focus on collecting feedback from customers they know had a good experience, while ignoring responses from unsatisfied customers. Customers might give more positive feedback than really deserved because they are embarrassed or uncomfortable sharing what they really think about the person or organization asking the questions. 10

11 //Chapter Two// Net Promoter Online Fosters Accuracy and Reliability The flexibility and choice found in NPS-integrated online feedback forms reduce many of the biases and problems that plague traditional surveys: Traditional surveys Net Promoter Online Traditional long surveys are too often ignored or filled out haphazardly. Online feedback lets customers choose whether to provide only brief, high-level scoring or rich and detailed feedback as well. Customers are uncomfortable sharing harsh opinions when a friendly person is asking the questions. Customers can leave feedback anonymously, without discomfort from sharing negative comments. Time gap between survey and experience reduces accuracy. Feedback is collected while customers are still engaged, so important details are not forgotten. Personal interactions with person conducting survey can influence results. Online feedback forms let customers choose whether to share feedback at all, and on which subject. Structured surveys cannot relate to the unique online journey and experiences of an individual customer. Customers can leave feedback at any point(s) of their digital journey, providing a fuller picture of the overall customer experience. 11

12 Chapter Three Taking Action by Gathering Feedback Along with NPS Insight Leading to Action What should be clear by now is that Net Promoter Online is not just an isolated score of your customers satisfaction. It s about understanding the reasons behind the score by collecting and analyzing additional feedback and customer data. This kind of business intelligence, effectively distributed to relevant parties, enables you to take informed action, transform your organization, and meet your business objectives. 12

13 //Chapter Three// Closing the Loop Online Insight into your customers profiles as well as the granular details of their issues, allows you to confidently close the loop by reaching out to your customers and making the necessary enhancements or changes. Alerted in real-time, your sales, support and operation teams can convert potentially lost sales, provide loyalty-building assistance and continually improve on all aspects of the user experience. Let s have a look how Net Promoter Online drives informed and profitable actions: Sales representatives that are aware of whether they are dealing with a Promoter, Passive or Detractor and are also informed about their prospects concerns are better equipped to close sales. Economized Support: Excellent customer support is an important ingredient for creating Promoters, but can be prohibitively expensive. By categorizing NPS-integrated feedback, low-level support requests can be deflected with customizable, auto-reply s, while high priority items are intelligently routed to a live support team. Website Optimization: NPS-integrated feedback regarding product details, content, site navigation, search, and other features is routed to the relevant team for optimization and improved customer satisfaction. Sales Enablement: NPS-integrated feedback generated from the checkout page that includes keywords like pricing, credit card or similar can be forwarded to sales for immediate followup. 13

14 Chapter Four Driving Change with Ongoing Accountability Accountability for Individual Business Units vs. a Global View When customers engage with several departments such as sales, accounting or support within a single interaction, it's essential to measure NPS for each distinct group to create accountability. When Net Promoter Online alerts you that a specific process or section on your website might be problematic, or that a particular department received negative feedback, there is no room for those in charge to equivocate and avoid responsibility. However, senior management still needs a global view of customer satisfaction and corporate health. To accomplish this, NPS for different departments or groups can be weighted and combined for a corporate bird s eye view. The accountability that Net Promoter Online creates gives you a powerful management tool for indentifying and incentivizing the people that can make the enhancements you need. 14

15 //Chapter Four// Enjoying the Best of Both Worlds Online Using Net Promoter Online, the process of either combining or comparing scores across an organization is completely streamlined. Customers tell you how likely they are to recommend your company and why, on any page or during any process on your website. This feedback can be combined, measured and analyzed to provide an overall Net Promoter Score for the entire online experience. Simultaneously Net Promoter Online offers a localized score with granular information on each and every aspect that contributed to the total score. 15

16 //Chapter Four// Yearly, Quarterly or Ongoing? Many companies rely on measuring their NPS once a quarter or even once a year. Kampyle clients have found that these limited NPS snapshots are insufficient for them. Infrequent measurements undermine your goal of being a customer centric organization. It transmits a message to management and employees that NPS is not important for company growth. Measuring NPS on an ongoing basis improves quality while reducing potential bias in survey sampling. In the fast-paced world of e-business, measuring NPS once or twice a year is not sufficient for making informed improvements that reflect rapid, ongoing shifts in customer expectations. Continuous measurement fosters innovation and experimentation as the effectiveness of these efforts can be analyzed on an almost immediate basis. In summary, the full, transformational power of NPS is realized when measured on an ongoing, real-time basis, as with Net Promoter Online. Trending reports that are based on continuous NPS feedback are more reliable than trending reports based on infrequent feedback. Ongoing NPS measurement can uncover unexpected trends even when the score remains the same, i.e. Detractors and Promoters are increasing at the same rate. 16

17 Conclusion Net Promoter Online Driving Business Success Bringing it All Together Net Promoter Online provides you a powerful set of tools which measure customer loyalty, assess your online performance, and actively support your digital business strategy. Net Promoter Online reveals root causes of customer dissatisfaction, and provides actionable insight for improvement and growth. Net Promoter Online allows you to resolve issues, enhance processes and offerings, and convert Detractors and Passives into Promoters. Net Promoter Online offers consistent and accurate ongoing measurement and creates accountability among managers and employees. Net Promoter Online is well-suited to online customer behavior. NPS and feedback can be gathered at any point of the customer journey, without inconveniencing customers. If you want to delight your customers and grow your ROI, consider integrating Kampyle s Net Promoter Online into your digital strategy. Kampyle s Net Promoter Online allows your customers to share feedback without interrupting their online activity. It measures NPS, segments respondents, alerts relevant teams, and offers you actionable insight. To discover why Kampyle is popular with enterprises around the globe, contact us today! 17

18 Kampyle helps you put customer feedback at the heart of your digital enterprise. With a complete platform that enables you to listen, understand, and act across digital touch points. You ll love the impact we have on your business. info@kampyle.com AUS: UK: +44 (0) US: To get started with NPS and to maximize your return on feedback: Go to