How NPS can improve your CX and help inform your tech decisions
It’s certainly no secret that customer satisfaction is crucial for any business to succeed. It can lead to increased revenue, customer loyalty, and positive word-of-mouth marketing. But in addition to developing a robust customer experience strategy, what are the major contributors to optimising customer satisfaction rates?
According to Shane Jones, CEO and Director of 9Yards, it all comes down to a few very important things, with the alignment of resources becoming especially paramount.
“We give careful consideration to staff experience, capabilities, and sector expertise, as well as ensuring a strong cultural and personality fit. In addition to this, we believe in providing exceptional pre- and post-support, ensuring a seamless and hassle-free experience when conducting business”, he said.
Before implementing the Net Promoter Score (NPS), a tool that measures customer loyalty and satisfaction, our team did what we had always done – provide quality solutions to clients. After implementing the NPS, we were able to gain valuable insights into our customer’s experiences and make data-driven decisions to improve our services further.
“One of the standout features of our customer experience is our approach to tailoring solutions to meet client’s needs. Rather than offering a one-size-fits-all solution, we start from the client’s perspective and work to meet their unique requirements. This approach allows us to be agile and flexible to maximise client value and address any major pain points”, said Shane.
While individual teams and personnel are assigned to client engagements, we leverage the collective knowledge and experience of our organisation to offer exceptional results to clients. This approach has helped us maintain a high level of customer satisfaction and loyalty.
“Our NPS score is very strong, exceeding the industry average. This score highlights the quality of our services and the value we offer to clients. It also provides valuable insights to both current and prospective clients, demonstrating the proven quality of our work and the ability to match capabilities and experience to meet their unique requirements”, said Shane.
Overall, NPS has allowed us to gain valuable insights, make data-driven decisions, and continually improve our services to meet the ever-changing needs of our clients.
Let’s take a closer look into exactly what an NPS is, how it works, and more importantly, how your organisation can implement it.
What is a Net Promoter Score and how is it calculated?
According to the ACXPA’s industry glossary, the Net Promoter Score (NPS) is a customer satisfaction benchmark used to gauge customer loyalty and satisfaction, and it’s a breeze to calculate and implement.
With just one question, “On a scale of 0-10, how likely are you to recommend <name of company> to a family or friend?,” your organisation can obtain valuable insights into its customers’ level of satisfaction and willingness to promote your brand.
The metric categorises respondents into three distinct groups:
- Promoters – these people scored you a 9 or a 10
- Passives – the people who scored you a 7 or 8
- Detractors – the people who scored you a 0 to 6
To calculate your Net Promoter Score, exclude the Passives and then determine the difference between the percentage of Promoter responses and the percentage of Detractor responses. The resulting score can fall within the range of -100 to 100.
While it may be tempting to compare your score with competitors, a good score depends on various factors, such as industry and location. According to Bain and Co, who created the NPS system, a score above +50 is excellent, while above +80 is considered world-class. In essence, any NPS score above 0 is good, as it indicates that customers are more loyal than not.
For example, at 9Yards, our high-quality services, expert staff capabilities and commitment to value adding have earned us an NPS score of 100.
How can CIOs and CTOs leverage technology to improve CX?
With the rise of customer-centricity as a business priority, it’s crucial for organisations to prioritise customer feedback and utilise it to inform your digital transformation strategies.
To improve customer experience, CIOs and CTOs can use data and analytics to gain insights into customer behaviour and preferences, allowing them to tailor their products and services accordingly. Incorporating NPS feedback into digital transformation efforts is a prime example of this.
NPS scores provide valuable insights into customer’s experiences, and by analysing this data, CIOs and CTOs can identify areas for improvement and develop solutions to address these issues. By shifting focus to CX and putting it at the heart of strategy, organisations can ensure that they’re meeting customer’s needs and expectations.
By placing customers at the centre of their efforts, organisations can build stronger relationships, drive loyalty, and ultimately achieve greater success in the marketplace.
However, it’s important to keep in mind that NPS – or any CX effort – is not a one-time project with a defined start, middle, and end; rather, it is an ongoing journey.
Ready to optimise your customer experience?
Does your organisation need assistance with developing a technical strategy that puts customer satisfaction at the centre? Reach out to our digital transformation consultants to get started.