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Amplifying Customer Success, Growth, and Loyalty through NPS Framework
Amplifying Customer Success, Growth, and Loyalty through NPS Framework

November 8, 2023

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Keeping customers happy and satisfied is a pursuit that goes back as far as business itself. As business landscapes evolve, the challenges companies face to keep customers engaged and the tactics to keep customers happy and satisfied evolve too. Neglecting to notice signs that your customers aren’t getting what they want can cause formerly loyal customers to switch brands. In fact, a recent research revealed 80% of customers said they have switched brands because of poor customer experience, and 43% of respondents are likely to switch brands after only a single negative customer service interaction. In fact, U.S. companies risk losing $1.9 trillion in consumer spending every year because of poor customer experiences.

Therefore, it’s crucial to enhance the customer experience at each touchpoint and during every transaction they encounter.

Elevate Your Customer Service Management through Net Promoter Score

Your customers are an essential part of your business, but how can one know what they’re thinking? Most customers won’t pick up the phone and tell you their feelings without being asked. That’s why many companies turn to automated surveys, sent at opportune times, to get a pulse on their customers.

One of the most popular and well-loved survey metrics used today is Net Promoter Score, better known as NPS. In an NPS survey, customers are asked (on a scale of 1-10) how likely they would recommend your products or services to friends, family, or colleagues. Based on the data and customer feedback, the companies can then generate an aggregate score that offers a view of what their customers are thinking and the overall health of the customer.

Why NPS?

In today’s digitally interconnected world, where customer opinions can influence brand perception with a single online review, NPS carries the power to shape reputations and impact bottom lines. It can help businesses elevate their customer relationships, streamline operations, and position themselves as leaders in their respective domains.

NPS provides a standardized means of assessing customer sentiment and simplifies the complex spectrum of consumer opinions into a single number. Based on the score, they are placed in one of the following three categories: Promoter (9-10), Passives (7 or 8) and Detractors (between 0 to 6). This numerical representation acts as a compass, guiding decision-makers to take targeted actions based on the feedback received. 


NPS Actionable Methodology

NPS methodology primarily gauges customer loyalty to a company or brand. With effective NPS framework companies can get the “churn rate,” indicating the possibility of subscription cancellations or non-repurchase and holds significance as retaining customers is more cost-effective than acquiring new ones. I strongly believe that no amount of advertising can ever do more for your business than customers’ heartfelt recommendations of your brand, so it’s only natural you’d be determined to keep your NPS scores high. However, as practical as it is, customer NPS will only take you that far. You need to go into the depth of the data to attribute meaning to your scores.

Here’s a methodology step-by-step that businesses can follow:

NPS: Empowering Intelligent and Informed Decision-Making

NPS isn’t just a score; it's a catalyst for informed and customer-centric decision-making. By focusing on the fundamental question of whether customers would recommend a company, a service, or a product, NPS shifts the spotlight from short-term gains to long-term relationships. It compels businesses to rethink their strategies and align them with customer needs. In this sense, NPS serves not merely as a metric but as a catalyst for cultural change, helping organizations to center their efforts on enhancing the customer experience. It is a simple formula, when done correctly, provides a picture of the overall health of a customer.

Here are some Best Practices while implementing NPS to thrive and excel in today’s fierce competitive market.

Analyze NPS spectrum patterns

·         Distinct patterns: Detractors or Promoters are skewedly distributed.

·         Problematic patterns: High passive distribution as compared to detractors and promoters.

·         Misleading patterns: Passive distribution comparable to either promoters or detractors.

·         Misinforming patterns: Lower NPS scores (0, 1, 2) are highly concentrated among the detractors.

·         Focus on all to understand the customer intent and true feedback. Try to get the customers into Distinct pattern

·        

 

Simplify and Clarify

·         Ensure NPS questions are straightforward, easy to comprehend, and free from ambiguity.

·         Avoid using technical or industry jargon that might confuse respondents.

Gather Detailed Insights

·         Include specific feedback about what customers appreciate and areas they believe need improvement in your products or services.

·         Capture likes, dislikes, and suggestions to identify actionable opportunities.

Strategic Survey Design

·         Design survey questions to provide valuable insights that enable informed business decisions.

·         Tailor questions to address your organization's unique needs and priorities.

Personalize for Engagement

·         Personalize surveys by using customer names and contextual information to improve response rates.

·         Make the respondents feel valued and heard.

Incentivizing Responses

·         Offer discount codes or rewards to encourage survey participation.

·         Apply incentives across all categories, avoiding exclusivity to promoters.

Strategic Timing

·         Align survey timing with business drivers and objectives.

·         Ensure that the survey is designed to elicit unbiased responses.

Effective Follow-up

·         Engage with clients who have completed the survey.

·         Provide specific action items or information based on survey analysis.

·         Demonstrate the value and importance placed on feedback through follow-up efforts.

By embracing the principles, methodology, and best practices outlined above, businesses can unlock the full potential of the NPS framework. Turning customer feedback into actionable insights can help businesses engage better with their customers and in turn keeping them happy and satisfied!

I firmly believe NPS can truly empower organizations to understand customer sentiments, cultivate lasting customer relationships, and convert feedback into valuable insights.

Author : Kiran Marri, SVP & Chief Scientist, Movate


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Movate (formerly CSS Corp), is a digital technology and customer experience services company committed to disrupting the industry with boundless agility, human-centered innovation, and relentless focus on driving client outcomes. It helps ambitious, growth-oriented companies across industries stay ahead of the curve by leveraging its diverse talent of over 12000 full-time Movators across 20 global locations and a gig network of thousands of technology experts across 60 countries, speaking over 100 languages. Movate has emerged as one of the most awarded and analyst-accredited companies in its revenue range.

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