NPS Best Practices

Creative use of Net Promoter Score® for MASSIVE Employee and Customer Engagement

Written by: Kushal Dev | Co-founder, Customer Guru

Companies collect and closely monitor their Net Promoter Score® as a leading indicator of their customer loyalty. This, however, is just the tip of the iceberg. The real value is in what you do with this data. Asking a follow-up question on the reason for the score provides a gold mine of information and helps identify areas where you are doing well or not. Setting the right processes for your organisation helps manage your feedback and operationalise it in your organisation.

But, what next? How else can you use this data effectively? Irrespective of whether you are doing an eNPS survey to understand your employee engagement or you are in a B2B or B2C business, there is a lot you can do with your customer’s Net Promoter Score® data. A few ideas are here:

Effective Customer Account management for B2B businesses

If you are a company supporting other businesses, Net Promoter Score® is a great tool to manage your accounts. Listening to stakeholders at multiple levels in your customer accounts gives a 360-degree perspective – right from the CXOs to the operational teams. This data is vital for your account management meetings as you have quantifiable data on what your clients feel about doing business with you and how have you used continuous communication to listen to them and taken the right steps to resolve their issues. The top management gets a clear picture of the account’s health and may get you an opportunity to upsell or cross-sell.

Customer loyalty vs Value

Identifying the correlation between customer value and loyalty helps you plan your marketing and service mix. Based on their value and loyalty, customers can be classified into the quadrants as shown above.

Customers in Q1 are high in loyalty and value, they are high impact customers and they can give you insights on what you are doing right. Focus on repeating what you are doing with this customer segment. Does this segment constitute customers with similar traits? Get more of such customers. They will pay more and it’s also known that not only do loyal customers complain less but also are willing to pay more.

Customers in Q2 deserve your immediate attention. Being not so loyal, they obviously are not pumped about doing business with you but they are the valuable ones. Understand what went wrong and look at resolving their problems as losing them is something you cannot afford.

Customers in Q3 are low on value and loyalty. Would you spend a lot on moving these customers to another quadrant? Will you be able to generate revenue to offset this spend? Maybe these are the type of customers you should avoid getting in future.

Customers in Q4 are those that would probably be open to buying more. They are the loyal ones but are not paying as much. Would there be a possibility to upsell and cross-sell? Deep dive into their profile to explore if there is.

Creative marketing opportunity for B2B and B2C businesses alike

Power of Word of Mouth

NPS data is traditionally used for customer support. How about using this data for Marketing, targeting the Promoters, Passives, and Detractors differently. Most likely, your Promoters are the engaged customer segment and would give into a bigger ask. Ask them for a review or testimonial which can go to your website or social profiles. Blowing their own trumpet on social profiles is what most of the companies do. How about making it easy and encouraging your customers to write testimonials and reviews? Not only does it look more authentic, but it also helps drive sales. According to a recent research, 61% of customers read online reviews before making a purchase decision, and these reviews are now essential for e-commerce sites.

Passives may not be that engaged. You could possibly urge them to follow you on social media. It’s a low-touch way to stay in touch that could eventually help them become promoters.

Ginny Soskey from Hubspot says that for Detractors, you might offer a way for them to unsubscribe from your emails or change what types of emails they receive from you. It seems counterintuitive, but if you can creatively position the unsubscribe, you could actually make your Detractors love you just a little bit more. Groupon’s unsubscribe page does a great job of letting you unsubscribe … while also making you like them.

In effect, you need to market differently to each group and a spice of creativity goes a long way.

eNPS to Enhance employee engagement and create happier customers

Don’t just believe this when I or anyone else says so. According to this USA Today report, Marriott has gained an average 11.3% a year for the past decade, vs. 7.9% for the Standard & Poor’s 500-stock index with dividends reinvested. Many of the publicly traded companies named as Best Companies to Work For in 2013 saw their stocks perform admirably in the previous year:

• Whole Foods soared 31%, vs. 13% for the S&P 500.
• Marriott gained 28%.
• American Express advanced 22%.

Rob Markey says, “Companies who master the Promoter Flywheel consistently create the right conditions in which their employees have the authority and accountability for creating more promoters among their customers. These companies stimulate “micro-innovation” in which employees experiment with new approaches to creating promoters. Employees can engage in these micro-innovations because they have clarity about the objectives (creating more promoters) and guidelines within which they can operate (company values, regulatory requirements, etc.). Clarity about the objective fuels their imaginations. Clarity about the guidelines and values frees their creativity from close supervision and the constraints of creativity-killing approval processes.”

Overall, if a company can keep employees happy, then costs and productivity improve.  Happy employees stick around so it reduces recruitment and training costs. After all, nothing gives more positive energy and motivation than knowing that in your endeavour to create a great customer experience, you have impacted someone’s life positively and created a Fan for the company.

Do you have more ideas on what you can do with NPS data or something which you already did? Please share it in the comments below.

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