Written by: Vivek Jaiswal | Co-founder, Customer Guru
Now is the best time for both customers and businesses: consumer opinion and company performance are out in the open, consumers make informed choices and companies can choose to improve by listening to the voice of customers. I believe, this trend is creating a long term positive impact on the entire ecosystem. Companies will optimise and improve their performance with customer centric view and consumers will get more bang for their buck!
Net Promoter System®(NPS) is a key parameter to quantify and operationalise customer experience in an organisation. It helps ingrain CEx in a company’s culture. We’ve come up with 5 critical benchmarks for companies who wish to implement NPS in their DNA:
Profit is not good if it is achieved through manipulative/creating accounting practices at the expense of customer experience. Along with ethical business practices, companies also need to ensure that they deliver what they promise. If companies only focus on acquiring customers by any which way but fail to deliver an outstanding experience then such profit is bad. Instead, companies with customer focus align their promises to what their customers expect and what they can deliver.
Annual report is a reflection of a company’s performance in the past year. Customer centric companies use this as an opportunity not just to reflect on how they performed financially but also what impact it had on customer loyalty. This quantification of customer experience, just like financial accounting, requires tracking NPS as a key metric of customer experience, and ensuring the sanity of data collected. It helps communicate to the stakeholders that the company is focussed on improving customer experience.
The sales team’s performance is measured periodically with their sales targets. Measuring just the sales number hides how those targets were achieved. Was it Good or Bad profit? Hence customer centric companies also measure customer experience. However it is important to implement a customer experience KPI once the right processes are in place. As a very high level blueprint, focus should be to measure and improve customer experience, not just a KPI that creates more trouble for your employees.
Compared to the old days when a business people knew their customers by first name, organisations do not have a personal connect with their customers. Multi location and multi channel presence of organisations means their customers also interact with them across channels and locations. In this scattered and dynamic environment it is not humanly possible to maintain the personal connect. Customer centric companies use technology effectively to provide a consistent and personal experience across channels. Social media has emerged as the most effective way to establish a personal connect with customers. It is again important to treat social media as a medium to establish that connect, not just a marketing channel.
Capturing customer feedback without taking action is useless. Nothing irritates a customer more than no action on their feedback and requests. Customer focussed companies set up the right processes and coach their employees to ensure that prompt action is taken on customer feedback and the right people have access to the most relevant customer feedback. This again is becoming easy with technology solutions that can automate the customer feedback process and the operational workflow around the feedback. NPS’s core philosophy is based on closing the feedback loop, without which it is as good as any other metric.
NPS makes it easy for everyone to understand how customer experience is measured and what needs to be done. However the push has to come from the top and, along with measuring NPS, top management should start benchmarking their processes against the ones mentioned above.
What other considerations should be made when adopting NPS? Please leave your feedback and suggestions in comment below.
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