This question often occurs in conversations with companies measuring NPS. The only correct reply is, “A rising NPS,” as it means that more customers promote your company in their network, resulting in multiple purchases, as well as purchases by new customers.
It cannot be a company’s sole goal to acquire the highest NPS rating in its industry. A rising NPS is a sign of long-term growth, when applied appropriately*.
Many companies compare their own NPS to the ratings of other organizations within the same industry, although this is considered an incorrect benchmarking method. Customers don’t base their assessment of an organization on their prior experiences with different actors within the same industry. They compare their experience to all customer experiences.
It is important not to become too fixated on Net Promoter Scores. NPS is a measuring tool, not a goal in itself. The ratings show whether you are doing well, yet fail to provide any information on what you are doing well, or where there is room for improvement.
Does your company collect open feedback from customers? Why did a customer give you a certain score? What strategies do you use to improve your ratings?
For companies that already actively solicit customer feedback, this blog article contains little new information up to this point. I shall therefore focus on two issues I have encountered several times in very customer-centric organizations, i.e. the scalability issue and the employee engagement issue. In this blog article, I shall address the first issue. The second one will be dealt with in the near future.
Stay tuned ;)
Even the most customer-centric organizations appear to be struggling with the analysis of open customer feedback.
How does an organization successfully manage a pile of raw feedback?
Dream scenario: Upon reading, interpreting, categorizing, and analysing customer feedback, the results turn into action points that are distributed throughout the organization, enabling all employees to contribute to a better CX. It is advisable to gather feedback more than twice a year. Companies should continually monitor customer satisfaction and intervene on crucial points in the customer journey.
The interpretation, categorization and analysis of open feedback is not considered a scalable solution, inasmuch as it is a very complex process requiring a lot of FTEs. Moreover, human intervention implies that the results will retain a certain level of subjectivity.
Hello Customer offers all those features. Our company has been working for years on the development of an intelligent technology that helps companies capture feedback and supports them in the interpretation, categorization and analysis of their customer data.
Our artificial intelligence makes it possible to close the feedback loop and enter into a dialogue with the customer.
Bet you will see a rise in your NPS!
* Do you want to know what I mean by “appropriately”? Feel free to ask :)