- Media: NASSCOM
- Spokesperson: Kiran Marri
Keeping customers happy and satisfied is a pursuit that goes back as far as business itself. As business landscapes evolve, the challenges companies face to keep customers engaged and the tactics to keep customers happy and satisfied evolve too. Neglecting to notice signs that your customers aren’t getting what they want can cause formerly loyal customers to switch brands. In fact, a recent research revealed 80% of customers said they have switched brands because of poor customer experience, and 43% of respondents are likely to switch brands after only a single negative customer service interaction. In fact, U.S. companies risk losing $1.9 trillion in consumer spending every year because of poor customer experiences.
Therefore, it’s crucial to enhance the customer experience at each touchpoint and during every transaction they encounter.
Elevate Your Customer Service Management through Net Promoter Score
Your customers are an essential part of your business, but how can one know what they’re thinking? Most customers won’t pick up the phone and tell you their feelings without being asked. That’s why many companies turn to automated surveys, sent at opportune times, to get a pulse on their customers.
One of the most popular and well-loved survey metrics used today is Net Promoter Score, better known as NPS. In an NPS survey, customers are asked (on a scale of 1-10) how likely they would recommend your products or services to friends, family, or colleagues. Based on the data and customer feedback, the companies can then generate an aggregate score that offers a view of what their customers are thinking and the overall health of the customer.
In today’s digitally interconnected world, where customer opinions can influence brand perception with a single online review, NPS carries the power to shape reputations and impact bottom lines. It can help businesses elevate their customer relationships, streamline operations, and position themselves as leaders in their respective domains.
NPS provides a standardized means of assessing customer sentiment and simplifies the complex spectrum of consumer opinions into a single number. Based on the score, they are placed in one of the following three categories: Promoter (9-10), Passives (7 or 8) and Detractors (between 0 to 6). This numerical representation acts as a compass, guiding decision-makers to take targeted actions based on the feedback received.
NPS Actionable Methodology
NPS methodology primarily gauges customer loyalty to a company or brand. With effective NPS framework companies can get the “churn rate,” indicating the possibility of subscription cancellations or non-repurchase and holds significance as retaining customers is more cost-effective than acquiring new ones. I strongly believe that no amount of advertising can ever do more for your business than customers’ heartfelt recommendations of your brand, so it’s only natural you’d be determined to keep your NPS scores high. However, as practical as it is, customer NPS will only take you that far. You need to go into the depth of the data to attribute meaning to your scores.