Generally speaking, of the two categories of CEO/CXOs that I have interacted with on the subject of NPS (Net Promoter Score), there are those who are in a hurry to operationalise the NPS solution within their organisations and perhaps have a fuzzy idea of the benefits and, there are those who after having implemented it for say a year or so, complain that it hasn’t made any difference, let alone add any value. I am sure that these two scenarios are relatable. Since NPS as a proxy measure of customer happiness has seen popular adoption, this article uncovers some (sector agnostic) nuggets that could be useful in practice.
Marketers need some semblance of control over hyper-connected, fickle, attention-deficit customers who call the shots today, so at least the debate on the importance of implementing an NPS (or similar customer feedback) platform within organisations has been conclusively laid to rest. Two stark truths emerge; one, the richness of insights and the business value obtained, is only directly proportionate to (mostly sweat, attention, and leadership sponsorship) investments you give it. And, second, NPS improvement holds a mirror to a firm’s commitment to customer centricity. This means the true value will never shine-out unless there is alignment and belief in every function in a firm. Be wary of shortcuts!
Having got that out of the way, let’s get on the same page with our understanding of NPS
NPS (net promoter score) is a customer feedback platform built on a seemingly simple concept of directly surveying and capturing a customer’s rating by asking specifically whether they are happy enough to promote our brand/product/service/company etc. Today, there are many contemporary technology platforms available from Litmus World, Notify, and Geckolyst (Mobme), etc., that can deliver customized surveys to pre-selected respondents, capture viewpoints, and provide real-time dashboards including AI-enabled sentiment analysis. Some, like the Geckolyst solution, are even multi-lingual (great for mass brands especially operating beyond metros) and can be rendered across various channels that the customer engages in.
More than just a number!
Ironically, the very simplicity of the design, which is the reason for its wide appeal, is also part of its problem. KPI-driven managers of all hues predominantly focus on tracking the score (rating) and ignore the wealth of other information that the tool throws up. The downside of single-mindedly tracking NPS scores is that it can render the process open to gaming and, slowly due to the half-hearted infusion of additional intellectual inputs, stakeholders can start to lose interest after the novelty wears off.
Demystifying customer-speak
In regular reviews, managers must evaluate the output of the NPS platform as a valuable information source that is ‘direct-from-customer’ to derive business insights. The platform’s analytical prowess can open up new areas of investigation; for instance, tracked across time intervals, it can highlight vital information from granular levels upwards regarding the source and reason for detraction and promotion, quality of products, the human-face of the service or which channel of service it was, website, app etc. to concerned areas. Customer feedback can endorse or validate newer initiatives or investments and compare pre- and post-launch scenarios. That apart, analyzing the moments of truth at customer touchpoints can throw up key areas of concern that your company may want to redress immediately.
What the scores foretell
Rather than just ‘score-watching’ in isolation, NPS scores on the ascendency can help hone investments and efforts backed by the customers’ thumbs up. Similarly, dipping scores indicating sources of customer turn-offs can be traced back to product/service features (or lack of them), the quality-of-service experience, or advertising claims vis-a-vis expectation. This can be a precursor to reviewing policies and processes, resource alignment or simply tackling skill or attitude issues.
Watch out also for contradictory trends which can also tell their own story; say NPS scores are increasing but say sales on the website or digital channels are not. Such contradictions need a review involving correlating the scores with other business matrices e.g., falling footfalls, lowered billed value, attrition, or increasing complaints (both in numbers as well as type). In fact, while you are at it, put some of the recent post-pandemic digital integration you may have carried out. Did the new technology do what it said it would do? And, to what degree?
Everyone is invited
NPS adds business value because customer feedback can fine-tune obvious gaps even after ‘successful’ pilots or go-live situations… so much more credible than (sometimes unreliable) gut feel or side conversations. Similarly, the rating of the various moments of truth in a customer’s journey on different channels may be different… for say a walk-in, an app-based user, customer browsing through your social pages … you would be able to gauge what is working (or not), to what degree, where and more importantly, why.
Matrixed organisations are the norm today with each function co-creating the final experience for the customer. Contrarily, however, just the customer experience or marketing departments are tasked with improving the NPS score (or customer happiness score as it is colloquially referred to) but, in reality, each and every function should be responsible. The ML engine allows auto-notifications to reach the function that may be the cause ‘of the experience gap. For example, a customer complaining about the rude behaviour of an executive can be auto-directed to the HR department or, someone complaining about a poor website experience to the IT department … The marketing or CX department can then be custodians to track its progression to solutions.
Ultimately, the choice of how well you utilise company assets is yours. Your customer’s loyalty and wallet are keenly watching your moves.
(The author is CEO, The Nxt Levels a strategic advisory firm & Sr. Adjunct Faculty, School of Business Management, NMIMS, Mumbai)
