Let the Voice of the Customer be the guiding principle for your organization! 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 answer 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). In order to calculate the absolute score, you have to 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 particular 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 organizations, 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 on a daily basis, 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 analyze 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 organization focus on receiving the highest score and not so much on the story behind the score? If you don’t know why a customer would or would not recommend your organization, then you have next to no information to work with. A lot of companies only think about the score , even if the follow-up questions tell much more about your customers. As Willem Mes, Director Operations Carglass, says: “Read what the customer has to say. The rating ensures that you can compare the results, the open answers are what is important.” Those answers say much more about customer experience and customer loyalty then just the metric itself.
How to get the most out of NPS? Download the 'Ten tips from Carglass'
Listen to the Voice of the Customer and the stories of the customer experience which lead to a recommendation or not, don’t just look at the metrics. Find out in which layer of the organization improvements will have the biggest impact. Prioritize and optimize processes step by step. The trend of your NPS and the customer feedback is what matters, not only 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 organization. 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 in 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 organization 100% customer centric.