Let the Voice of the Customer be the guiding principle for your organisation! By using metrics like NPS, CES and CSAT, you can make VOC more tangible. In this series about the Voice of the Customer, we will go into the details of these three KPIs. This time we will explain the importance of using NPS when collecting and measuring the Voice of the Customer.
What does NPS mean?
The Net Promoter Score measures the loyalty of the customer. The NPS method asks: ‘How likely is it that you would recommend product/service/company X to friends or family?’. Respondents answers on a scale of 0 to 10. Based on their score, respondents can be categorized into three groups: Detractors (0-6), Passives (7-8) and Promoters (9-10). To calculate the absolute score, you must take the percentage of Promoters and then subtract the percentage of Detractors. The result is used as an absolute score that can range from -100 to +100.
With the CYS innovative questioning process based on the Root Cause Analysis Method, you don’t just measure the Net Promoter Score, but you will also measure why the customer gave you this score using three simple follow-up questions. These questions, an open answer-box and the categorized follow-up questions, are the most valuable. The customer provides real-time feedback that can be used for improvement, coaching and adjustments within your company.
Measuring the Voice of the Customer with NPS and making an impact
An annual customer satisfaction survey isn’t anything new for most organisations, but what is the real impact of these periodic surveys? Quite often, there is no further follow-up or fundamental impact on the management or processes. The reason for this lack of impact is the fact that market research reports tend to be more of an overview of the average customer rather than providing actionable insights.
By using NPS daily, you will truly find out what the customer thinks. The respondents provide insight into the underlying reasons for their score by answering follow-up questions. After answering the recommendation question, the customer is asked to write down why they would or wouldn’t recommend your company in an open-answer box and then to choose to which category and subcategory this feedback belongs. Based on this information you can analyse the drivers behind the Net Promoter Score in up to 64 different categories. A generic company-wide NPS isn’t that valuable. Find out why the NPS has been given. Collecting customer feedback and making it actionable for each department and each individual employee are the next steps!
Don’t focus too much on a high NPS score, instead look at why
Does your organisation only believe in high scores? If you do not know why a customer recommends your organisation or not, you have very limited knowledge and background of your customer. Many companies go wrong there, thinking that knowing and measuring an NPS is sufficient, while it is precisely the follow-up questions that reveal the most about your customers. As Willem Mes, Director Operations Carglass, indicates in ten tips about getting the most out of your NPS: “Read what the customer tells you. The grade allows you to compare differences, the open answers are what it’s all about.” The answers say much more about the customer experience and customer loyalty than just a score.
The stories of the experience (storytelling) that lead to a recommendation or not; that is the feedback that you as an organization must tackle with both hands. Listen to the Voice of the Customer and don’t just think about the score! Think about where in which layer of which department the improvement has the most direct impact and determine where your priorities lie. From there you can optimize processes step by step. The trend of your NPS and the customer feedback are more important than just a high score.
Keep improving the trend of your NPS
If the current NPS of your organization is quite high, does it mean you should quit measuring? Of course not! Don’t be blinded by high scores. Motivate every employee in every department to improve customer enthusiasm. Start with formulating a realistic goal for your organisation. You can always improve your customer satisfaction, even if your NPS scores are high! Keep following customer feedback and anticipate this as an organization.
When there is a period where your NPS is lower, find out why this is happening. Sometimes there is a clear explanation such as reduced service levels because of increased sick leave. Find the cause, think of solutions for a better customer experience and prevent similar situations in the future. Analyze the stories behind the NPS. Use the force of the Voice of the Customer with NPS as a metric to make your organisation 100% customer centric.