Happily Ever After…With

Understanding how to build a perfect NPS program with the 5-W approachNPS

®

Foreword:

The purpose of this eBook is to cement the belief that nurturing a healthy relationship with your customers is one of the simplest ways to get your Net Promoter Score soaring. The ideal relationship to have with your customers is one in which there is trust, transparency and a whole lot of listening. Sounds a lot like tips for a happy marriage, doesn’t it!

Of course, it is an analogy and it is done in jest, but once you see it the way we see it, it’s hard to un-see the point. So, sit back and read on to figure out why we say the best NPS program is akin to a traditional marriage!

It seems befitting to quote Mr. Khalil Gibran at this point:

“An exaggeration is truth that has lost its temper.”And that, dear reader, is what you should remember whilst reading this eBook. Let not the exaggeration of the analogy take away the truth that comes with it.

This eBook will help you out with everything you need to know about NPS and how you can work towards that happily ever after story with your customers that you’ve always dreamed of.

We hope this eBook helps you find direction in your journey to scaling great heights with NPS!

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Table of contentS

Bird’s eye view of the Net Promoter Score

What goes into building the perfect NPS program?

Why tracking NPS is a must for a happily-ever-after success story

When to pop the (NPS) question?

Where to pop the (NPS) question?

Who are all involved in a successful NPS program?

Raising a toast to The Ultimate Question

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THE NET PROMOTOR SCORE

When it comes to measuring Customer Experience, few other formulae have been as popular as the Net Promoter Score.

There’s a bunch of reasons for this popularity. It is super simple to calculate; it addresses one of the most important drivers of growth - Customer Loyalty; several companies have witnessed an indirect growth in revenue by working on the insights received from the NPS tracking system.

You need to invest in a Net Promoter Score Program if you are:

Clueless about collecting/organizing Customer Feedback data

Scared of the very thought of sending out feedback surveys

Constantly tending to the apathy that has plagued your customer-facing employees

Tired of traditional business strategies not bringing you enough ROI

Be that as it may, The Net Promoter Score continues to make organizations more & more aware of how easy it is to deliver a supreme Customer Experience and the best part - you don’t have to spend a bomb on it!

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What is this NPS though?

The Net Promoter Score, in its fundamental form, is a question which helps you to track the likelihood of your customers recommending your product/sevice/brand to their family or friends. In Customer Experience, it is crucial to know how your customers perceive your brand and the experience they had with your brand. NPS allows you to find out about how awesome an experience they had with you (or not) by asking one simple question.

Why is NPS so popular?

Let’s look at it this way. Consider NPS to be a thermometer which shows you how hot you are with your customers in terms of loyalty. The more detractors you have, the lower your score, the lesser the customer loyalty you can expect.

The more promoters you have, the higher the NPS score, the hotter the chances of loyalty! This may be a simplified version of a more data-driven approach, but it pretty much boils down to this. Net Promoter Score has an indirect impact on not just customer loyalty but also on your ROI in the long run.

Customers answer this question on a 11-point scale ranging from 0 to 10. Depending on how they score you, customers then are categorized into detractors (0-6), passives (7 & 8) and promoters (9 & 10).

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What constitutes a good Net Promoter Program?

With these 9 ingredients, you are well on your way to building a successful NPS program:

Loop Closure: Immediate, sincere loop closure encourages the detractor-promoter flip.

Real-Time Action: A good NPS system will address loop closure in real-time.

One View for Data: A “One View” peep into all your customer data gives you maximum customer insights.

Multi-Channel approach: Open all doors of communication to listen to customers online & offline.

Free Text-analytics: Investigate into the free-text data and analyze the sentiment that dictates your customers’ experience.

Automated Surveys: Survey your customers regularly (but practically so) and spin an automated process around this.

Buy-in from the top: Align your organization around the NPS and make it an organization-wide goal.

Non-intrusive: Surveys that have 3 (or less) questions get higher responses. Choose your channels also wisely.

Define the Goal: Set yourself a deadline and inspire the entire organization to work towards achieving the targeted Score.

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Why is tracking NPS a must for a happily-ever-after success story

Data! Data! Data! I can’t make bricks without clay!

- Sir Arthur Conan Doyle

Tracking, measuring and improving Net Promoter Score is vital today more than ever because in the age of information “powerless” is not a word you would associate with customers. Because we no longer live in a world where Customers have no choice and will put up with mediocrity of any sorts. Because

what gets measured, gets managed.

?

Because Sherlock Holmes said so...

Start your NPS program TODAY!

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STAT CHAT

89% of companies compete mostly on Customer Experience today, versus 36% which was 4 years ago. (Gartner Report)

By 2020, Brand differentiation is expected to take place based entirely on Customer Experience, leaving both Product & Price far behind.

Net Promoter Score is the foundation of tracking Customer Experience. Evidently the CX revolution has begun and tracking NPS allows you to understand what course of action you need to take to propel your Customer Experience rocket. There’s a reason why so many successful companies track the “One Number” and the reason is that it gives you insights into customer behavior and how to promote customer loyalty.

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“Bad profits are earned at the expense of customers;good profits are earned with customers’

enthusiastic cooperation.”- Frederick Reichheld

In our experience as a Customer Experience Management Platform, we’ve helped dozens of brands track, monitor and improve their Net Promoter Score. Actually,

We’ll let data speak for itself…

Image Source:i.ytimg.com

Category Initial NPS Improvement in NPS

Retail High (75 to 100) 7% (Jan to July 2016)

Retail Medium (50 to 75) 5% (Jan to July 2016)

Retail Low (< 50) 65% (Jan to July 2016)

E-commerce Medium (50 to 75) 4% (May to July 2016)

E-commerce Low (< 50) 100% (April to July 2016)

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When is it a good time to pop the(NPS question?

Much like in the case of the “other question”, there really is no perfect time to pop the NPS question either. Although, there is a limit when it comes to the frequency of popping this question. Seeking feedback is a delicate process which is often overlooked and abused.

Asking for feedback too infrequently may not fetch you timely insights into customer behavior trends & expectations. Au contraire, you may come across as too invasive or annoying if you bombard your customers for feedback every other week.

So, it is wise to know when and where to pop the question because this wisdom leads to:

Building a sustainable relationship with your customers

Higher response rates

Understanding your customers better & exceeding expectations

Targeting the right audiences

Knowing when to ask the NPS question also depends on whether you wish to collect Experiential feedback or Transactional feedback. Conventional NPS question deals with the recommendation of the brand/product/service, overall. But NPS has evolved into something that could be used to track loyalty pertaining exclusively to a certain touchpoint, or just the customer experience or to a transaction.

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Depending on what you’d like to know, CloudCherry allows you to customize your question.

Based on today’s delivery experience / showroom visit/ consultation, how likely are you to recommend (brand/service) to your friends & family?

What pleased you the most about your experience with us today?

Your follow-up question could also be specific to the rating the customer gives you, targeting promoters, detractors & passives.

Considering this experience with (BRAND/SERVICE), How likely are you to recommend us to family members or friends or peers?

Not at all likely Extremely likely

ONLY FOR PROMOTERS (9/10 IN NPS)

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What pleased you the most about your experience with us today?

Where can we improve to give you a better experience?

ONLY FOR PASSIVES (7/8 IN NPS)

We are sorry that we could not meet your expectations today. Can you tell us what went wrong with your experience with us today?

Is there anything you’d like to share with us relating to your experience with us today?

How can we give you a better experience?

ONLY FOR DETRACTORS

or

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Where to pop the NPS question?

EMAIL

Ideally, you should be equipped to do this wherever your customers are. Being time-sensitive and aware of survey fatigue is your key to success when it comes to obtaining maximum responses. Response rates and insight gathering are directly proportionate to each other. Also, understanding where your customers hang out can come in handy maximizing the reach of your feedback request!

CloudCherry offers 17 different feedback channels! No Way! ?Picking the right channel calls for a bit of planning in advance:

When the survey you send out has more than 2-3 questions, it is better to send out an email link so your customers can fill it up at their convenience.

SMS:When it is a quick question which you would like to send out to your customers on their mobile. More Intrusive than email, so use sparingly.

Website:Understand Customers’ experience in Real-time.

Tablet:Best channel to collect In-store feedback. It is quick, reliable and guarantees high response rates.

In-App:When you seek to capture mobile app feedback. Unless restricted to 3 questions (NPS, reason for score & free-text), it can be highly intrusive and might beget abandonment. Response rates, however, is highest of all channels.

Others:QR codes, email embeds, IVRs, and some other channels based on what you seek to ask your customers, what business you are into and who your customers are.

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Tips for a successful NPS programWho are all involved in a successful NPS program?

The best NPS program involves the participation of the entire organization working in tandem. Each employee contributes in his/her own way to the success of the NPS program.

Employee engagement plays a crucial role in determining the success of your NPS program. Only fully motivated employees go beyond JDs and designations to make sure the bigger goal is achieved.

Employee loyalty scores, which will in turn help you design a better employee engagement strategy. And as you should already know, companies with engaged employees outperform those without by a whopping 202%!

Companies that approach NPS as a departmental task often risk sustainability & growth. The C-suite, the management, the manager-level employees, the front-line as well as those who work remotely are all supposed to work collectively.

CURIOUS TO KNOW HOW ENGAGED YOUR EMPLOYEES ARE?

Invest in a NPS tool which will help collect, organize as well as analyse customer feedback data.

Invest in a CRM which will help you store data for future references.

Always send out a ‘Thank You’ note to your respondents, appreciating the time & effort they spent filling it out.

As far as possible, refrain from sending out templated emails. Nobody likes this. Draft separate mails for Promot-ers, Passives and Detractors.

Once you’ve resolved an issue brought to light by your customers, be sure to let them know so. It shows you care about & value their feedback.

If you have a separate team to monitor NPS, you’re doing it horribly wrong. Make it a pan-organizational effort.

The shorter the survey, the higher the response rate.

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Summary

Net Promoter Score is the easiest, simplest and by far the most trusted metric to measure loyalty. If you are a customer-facing company, you should seriously consider investing in an NPS tool right now, if you don’t already have one in place.

We’ve given you the 9 ingredients that go into designing the ultimate NPS program. Your magic is waiting for you on the other side of your NPS initiation!

Tracking NPS is no more an option but a necessity, because “what you cannot measure, you cannot manage” and managing customer loyalty will only result in heightened revenues.

Understand your customers and the goal of your NPS program to decide when you should ask the question & on which platform. Being sensitive to their time and privacy is crucial.

NPS measurement can never be a team-based or a departmental task.Organization-wide involvement is key to success.

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A toast to The Ultimate Question

Building customer loyalty, much like trust in a relationship, does not just happen overnight. A lot of little instances of

support, respect and timely interventions propel you to building trust & loyalty. Once

this trust is gained, it is your duty to make sure that the trust is intact and this

again calls for sensitive strategizing.

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NEVER take the customer for granted because your brand promise is what s̒

keeping the flame alive. Feed it frequently and ensure that they don t̒ feel the need to

stray, ever! Again, being too pushy and constantly making sure they are ok could

also jeopardize the relationship.

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Much like in a relationship, your NPS program too calls for a lot of empathy and

sensitivity. There is strategy, yes, but that can only take you so far. What

ultimately makes you the winner in the eyes of your customers is not how much incentive you gave them over the past

year, but how many times they v̒e walked out of your store feeling like a boss! That feeling, is delight… And DELIGHT is what

you need to aim for if you are writing your happily ever after!

Customer Delight Is My Priority Numero UNO!

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© 2016 CloudCherry. All Rights Reserved

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CloudCherry is a Real-Time, Omni-channel Voice Of Customer platform that helps brands track, measure & improve Customer Experiences - thereby increasing profitability and customer loyalty. Leading global brands use CloudCherry today to capture feedback from 17+ channels, measure key metrics like their Net Promoter Score, Customer Effort Score and more, analyse the data to gather customer insights, and put them in action organization-wide.

CloudCherry is a product of Customer Analytics Technogies Inc. based in Salt Lake City, UT, and has a global presence with offices in Singapore, Bengaluru & Chennai. The company is backed by Vertex Ventures, CISCO Investments, IDG Ventures India, The Chennai Angels and Capillary Technologies.

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