Net Promoter Score

Net Promoter Score – What is it and Why Does it Matter For My Business?

A Net Promoter Score (NPS) is a metric used to gauge customer loyalty. It is calculated by subtracting the percentage of detractors from the percentage of promoters of your business. It’s that simple. But what does it mean? This one figure can hold a lot of meaning for your business.  Read below for advice on interpreting your NPS as well as how to interpret other key CX metrics.

Stop Bribing Your Employees for Good NPS Scores

We’re early in Customer Experience (CX) capability development, and I absolutely love it! We’re discovering the best practices that our successors will take for granted; “of course that’s how you do it.”

Unfortunately, being in this early stage means that some “best practices” aren’t. Some actually hinder the goal of improved CX – to create loyal customers who love your brand and come back time and again.

One “best practice” that can create a terrible customer experience is paying employees to achieve good NPS, or Customer Satisfaction, scores. This needs to stop.

Read more

NPS Pop-Ups—Low-Cost, Yet Low-Quality

Jean Fasching, Lead Consultant

This is a guest post written by one of our very own Lead Consultants, Jean Fasching. 

A friend of mine who’s new to NPS research recently shared that she was frustrated with the response rate (less than 1% of those asked) from a B2B, NPS (Net Promotor Score) question recently added to her company’s website. Executives dictated the addition as a low-cost and efficiency method to get at NPS. So, to keep it simple, she had it added as a one-question pop-up for every “n” visitor to their home page.

She was frustrated at the low response rate, especially to a one-question survey—it was as simple as it could get, so what could she do to get more responses? As we chatted, I mentioned a low response rates (let’s say, below 3%) for the clear majority of website surveys is a common issue, and I’ve only seen good response rates (let’s say above 10% – 50%) using pop-up website surveys in a very few instances. Read more

Your CX Scorecard is Probably Measuring the Wrong Thing

“The purpose of a business is to create and keep a customer.” – Peter Drucker

I love that quote. In one short sentence, Drucker summarizes what a business – and customer experience (CX) – is all about. But despite that wisdom, companies continue to focus primarily on creating customers, often forgetting that keeping them is the way to organic growth. And when they do focus on keeping customers, the focus is all too often on trying to trap them – requiring a phone call to cancel (I’m looking at you, TiVo and Comcast), or requiring contracts that assess fees to leave (Comcast, you again).

Jeannie Bliss has been beating this drum for years. We need to listen to her. What matters is new customers minus attrition, plus how much those customers spend with you. Everything else is just window dressing. Read more

Customers + Bad Math = Worse Strategy 

There’s something that always bugged me about how people present their customer scores – whether satisfaction, NPS, Customer Effort, or anything else. 

There are really two primary approaches to this reporting: 

  1. Give an average (4.65 out of 5, for example) 
  1. Give the % of top box (5 out of 5, 9 or 10 out of 10) or Top-2 Box (4 or 5 out of 5) 

From what I can tell, nobody really thinks about this. They just do what’s traditional. If a vendor reports one way to one customer, they report this same way to ALL customers. As if everybody’s customers react the same way, and all points in the scale matter the same. 

But that’s not true.  Read more

Your business doesn’t really care if your customers are likely to recommend you 

And neither should you.  Read more

Are Your New Customer NPS Scores Low? Here’s Why

It’s not unusual for new customers to have lower scores than expected—but it can seem counterintuitive. After all, they just selected your company – why are they so low? You’ve gone through and removed barriers, but your customers aren’t showing the love.

It might not be what you’ve done. The problem may be their reference point.

The more time you spend in a company, the more your perspective shifts. We all try to maintain the “beginner’s mind,” where we see things as if they were fresh.

But here’s the thing. Your customers don’t really have a beginner’s mind, either. They don’t actually judge your experience on its own merits, but by a separate reference point – one you might be aware of.  Read more

Does your customer or employee come first? Answer: Yes

iStock_000025403053XXLargeThis is a question that my fellow bloggers love to debate – do you focus on customers to drive change, or prioritize employee engagement to develop a sustainable customer-focused culture?

This continues my review of the 2013 Temkin Award Winners and how they match the Heart of the Customer model. As I reviewed the award winners, it quickly becomes obvious that this really isn’t an either/or question.  Both are critical to success. Let’s look at how three award winners drive both employee and customer engagement. Read more

“No, Bill. You don’t want wider seats.”

At a recent dinner party I explained what I do for a living. One attendee responded, “Well, then can you please call Delta, and tell them I want wider seats?”

I responded, “Actually, you don’t.  People say they want wider seats, but their behavior says that they really don’t.”

“Oh, you mean the hypothetical general public doesn’t want wider seats?”

“No, Bill.”  I responded. “I mean that you specifically don’t want wider seats.”

—————-

The problem with many customer experience surveys is that they recommend the equivalent of “make my seats wider.” It’s a common practice to ask customers to rate importance for different factors, then compare that to satisfaction. But it just doesn’t work.  Since you measure each item in isolation, everything is free.  And so there’s nothing to ensure that respondents’ answers match their actual behaviors. Expensive things like wider seats have just as much weight as free peanuts.

To show what I mean, let’s play this out.  I call Delta and somehow find the magical IVR prompts to reach the right person. She hears my plea and responds, “My goodness – you’re right!  We’ve been looking at this wrong! We’ll fix that immediately.”  So they remove one chair from each row to allow for wider seats.  What will happen? Will travelers flock to Delta to take advantage of the space?

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Creating a great customer experience for agents AND consumers – an interview with Lisa Hoene, VP of Brand and Marketing Services, Allianz Life

Aiming for the Heart of their CustomersThis is the fourth in our Aiming for the Hearts of their Customers interview series, with seven Minnesota customer experience leaders sharing their strategy for the coming year. In this article, we catch up with Lisa Hoene, the VP of Brand and Marketing Services for Allianz Life. You can see all of the interviews here:

Lisa Hoene

Overview

Allianz Life Insurance Company of North America (Allianz Life) helps Americans achieve their retirement income and protection goals with a variety of annuities and life insurance products sold through independent financial professionals. As a leading provider of fixed index annuities, Allianz Life is part of Allianz SE, a global leader in the financial services industry. Read more

Real-World Customer Experience Stories – Isolating What Really Matters

Heart of the Customer's Customer Experience ModelThe Real-World series continues.  In these posts I’m sharing how the 2012 Temkin Customer Experience Award finalists actually go about building their customer experiences.

The first two posts focused on how the respondents create Customer Intelligence – the first stage of the Heart of the Customer’s Customer Experience Model.  We started with Bringing Your Customers to Life, and continued with Identifying the Metrics that Matter.

Now we move into the Customer-Based Capabilities stage of the model, specifically Isolating What Really Matters.  This stage goes beyond the relationship metric that matter to find the drivers that actually impact your customer.  Rather than telling your managers to focus on improving your Net Promoter or Satisfaction scores, you discover what factors actually drive those scores.  You can see more detail here. Read more