Net Promoter Score

10May

Net Promoter Score Explained

When a friend or colleague takes the time to tell you about a product or service, you probably pay attention. Your friend is more reliable than a Yelp review, right? Word of mouth is the most common way people hear about brands. But how can you tell if your existing customers like your company enough to recommend it to their friends? One way is by tracking your Net Promoter Score (NPS). Is NPS really the best way to measure customer loyalty? Some service leaders aren’t convinced. We wanted to explore the pros and cons of this popular (and sometimes controversial) metric by reviewing what it is, why it’s important, and why some Service Trailblazers choose to measure loyalty in other ways. What is a Net Promoter Score? The Net Promoter Score is a customer experience metric that captures how likely a customer is to recommend your products, services, or brand. Created by Fred Reichheld in 2003, NPS has since been widely adopted. To find NPS, businesses ask customers: “On a scale from 0 to 10, how likely would you be to recommend our company to a friend or colleague?” Typically, companies follow up with an open-ended question to understand why a customer chose their score. Customers are categorized as promoters, passives, or detractors based on their scores: By understanding these categories, businesses can gain insights into customer loyalty and take action to improve customer experiences and foster stronger relationships. How to Calculate Net Promoter Score A company’s NPS is calculated by subtracting the percentage of detractors from the percentage of promoters. For instance, if you have responses from 100 customers, with 30 promoters and 18 detractors, your NPS would be 12. Why is the Net Promoter Score Important? Companies use NPS to gain insights into individual customer experiences and understand the overall perception of their products, services, and brand. NPS feedback helps address individual issues, enhance product offerings, and apply customer service principles effectively. An improving NPS indicates positive changes that matter to customers, while a sudden drop signals potential issues that need attention. What is a Good Net Promoter Score? NPS can range from -100 to +100. While anything above 0 indicates more promoters than detractors, industry-specific benchmarks provide a more nuanced view. For example, the average NPS in the insurance industry is 74, whereas in healthcare, it’s only 45. According to Bain & Company, the creators of NPS, a score above 0 is considered good. Scores over 20 are favorable, over 50 are excellent, and above 80 are world-class. Comparing your NPS to industry benchmarks helps gauge your customer experience relative to competitors, though it’s important to consider the context, such as company size and market scope. What is a Bad Net Promoter Score? Any NPS below zero is considered bad, as it means more customers are dissatisfied than satisfied. A significantly lower NPS compared to competitors may indicate the need to re-evaluate your customer service experience and address gaps that cause dissatisfaction. What Can You Measure Using NPS? NPS provides insights into: Bain & Company’s data shows that companies with long-term profitable growth have an NPS twice as high as the average company. How to Run Surveys and Collect Feedback Running an NPS survey involves asking a single question, collecting responses, and calculating your NPS. Surveys can be distributed via email, text, in-store, or online at checkout, using a survey builder or NPS app for automation. When to Run NPS Surveys The timing of NPS surveys varies: Staggering surveys over time can provide a more organic picture of customer satisfaction. How to Collect NPS Feedback Following up with an open-ended question like, “What’s the primary reason for your score?” helps gather actionable insights. This feedback can highlight areas for improvement and strengths to build on. How to Improve Your Net Promoter Score Improving NPS requires both individual and broad strategies: Implementing Net Promoter Score Invest in NPS survey software that integrates with your CRM platform. Automate survey distribution and workflows to manage responses efficiently. Designate responsibilities for customer follow-ups and NPS analysis. Measuring Your NPS is Just the Beginning Your NPS provides valuable insights into customer loyalty and satisfaction. However, the follow-through on these insights is crucial for engaging customers and delivering better experiences. Measuring your NPS is the first step towards enhancing your overall customer experience. Like Related Posts Salesforce OEM AppExchange Expanding its reach beyond CRM, Salesforce.com has launched a new service called AppExchange OEM Edition, aimed at non-CRM service providers. Read more Salesforce Jigsaw Salesforce.com, a prominent figure in cloud computing, has finalized a deal to acquire Jigsaw, a wiki-style business contact database, for Read more Health Cloud Brings Healthcare Transformation Following swiftly after last week’s successful launch of Financial Services Cloud, Salesforce has announced the second installment in its series Read more Top Ten Reasons Why Tectonic Loves the Cloud The Cloud is Good for Everyone – Why Tectonic loves the cloud You don’t need to worry about tracking licenses. Read more

May 10, 2024in Agentforce Platform, Salesforce Service Cloud

07Jan

Improve Customer Experience

The Importance of Customer Experience: Turning Every Interaction into a Lasting Impact Customer experience (CX) refers to every interaction a customer has with your brand—from the first touchpoint through to post-purchase support. While the term is often used broadly, its meaning is more nuanced, encompassing the entire customer journey. From the initial ad they see to the quality of their engagement with your customer support, CX reflects the customer’s perception of your brand, compared to the promises you’ve made. Improve Customer Experience. What Is Customer Experience (CX)? At its core, CX measures how customers perceive their interactions with your organization. It goes beyond customer service and spans every touchpoint, whether it’s the ease of navigating your website, the tone of your marketing emails, or the post-purchase support experience. A strong customer experience is critical for fostering brand loyalty and meeting customer expectations at every step of their journey. Why Customer Experience Matters In today’s competitive marketplace, customer expectations are at an all-time high. According to research, 80% of customers say that the experience a company provides is just as important as its products or services. Whether you’re in B2C or B2B, an exceptional customer experience translates into loyalty, brand advocacy, and revenue growth. Some key benefits of prioritizing CX include: Key Elements of a Great Customer Experience Our research highlights several factors that customers deem essential for a great experience: However, many companies fall short of these expectations. For example, 56% of customers report needing to repeat themselves to different representatives, and 55% say it feels like they’re interacting with separate departments rather than a single, unified brand. The good news? A subpar experience can be quickly remedied with exceptional customer service—75% of customers will forgive mistakes after receiving excellent support. How to Measure Customer Experience Measuring CX is essential for understanding what works and where improvements are needed. Popular methods include: Building a Successful CX Management Strategy An effective CX management strategy aligns your entire business around the customer’s needs. It should include continuous feedback loops, data-driven decision-making, and a focus on creating a customer-centric culture. Improve Customer Experience. Key Pillars of a CX Strategy: How to Improve Customer Experience Delivering a standout customer experience requires a combination of people, processes, and technology. Here are five best practices for enhancing your CX: The Role of Experience Management Customer experience management (CXM) goes hand-in-hand with a broader experience management strategy. This includes not only customer interactions but also employee experiences, product quality, and brand perception. By implementing an experience management framework, companies can align technology, culture, and six core competencies to optimize all aspects of customer engagement. The Bottom Line: Customer Experience Drives Success With Salesforce Customer experience is no longer just a buzzword—it’s a critical factor for business success. By understanding and improving the customer journey, you can foster loyalty, reduce churn, and create a long-term competitive advantage. Start by building a strong CX framework, empowering your teams, and making data-driven decisions to lead the way in customer satisfaction. Content updated August 2024. Like Related Posts Salesforce OEM AppExchange Expanding its reach beyond CRM, Salesforce.com has launched a new service called AppExchange OEM Edition, aimed at non-CRM service providers. Read more The Salesforce Story In Marc Benioff’s own words How did salesforce.com grow from a start up in a rented apartment into the world’s Read more Salesforce Jigsaw Salesforce.com, a prominent figure in cloud computing, has finalized a deal to acquire Jigsaw, a wiki-style business contact database, for Read more Health Cloud Brings Healthcare Transformation Following swiftly after last week’s successful launch of Financial Services Cloud, Salesforce has announced the second installment in its series Read more

January 7, 2024in Data, Google, Marketing Automation, Salesforce Copilots, Technology

23Nov

What is Net Promoter Score

what is net promoter score and what does it really tell you? Here’s a breakdown of the pros and cons of tracking Net Promoter Score (NPS): Pros: Cons: In summary, while NPS offers valuable insights into customer loyalty and satisfaction, it’s essential to recognize its limitations and complement it with other metrics and qualitative feedback for a holistic understanding of the customer experience. Like1 Related Posts Salesforce OEM AppExchange Expanding its reach beyond CRM, Salesforce.com has launched a new service called AppExchange OEM Edition, aimed at non-CRM service providers. Read more The Salesforce Story In Marc Benioff’s own words How did salesforce.com grow from a start up in a rented apartment into the world’s Read more Salesforce Jigsaw Salesforce.com, a prominent figure in cloud computing, has finalized a deal to acquire Jigsaw, a wiki-style business contact database, for Read more Health Cloud Brings Healthcare Transformation Following swiftly after last week’s successful launch of Financial Services Cloud, Salesforce has announced the second installment in its series Read more

November 23, 2023in Salesforce

18Oct

Shifting Trends in Customer Experience

Shifting Trends in Customer Experience Technology Amid Economic Challenges The customer experience technology market has expanded significantly over the past decade. However, the current economic climate is causing a slowdown in sales for this previously unstoppable industry. This shift reflects changes in how decision-makers approach purchasing customer experience software today. The Rise and Current State of CCaaS In recent years, there has been a surge in the adoption of CCaaS (Contact Center as a Service) within the customer experience technology stack. CCaaS is a cloud-based customer service solution that allows companies to operate a contact center without maintaining physical infrastructure or extensive on-premises equipment. Many leaders in CCaaS companies describe their current sales cycles as “weird,” indicating that inflation and global economic instability have finally impacted customer experience technology. Challenges in the Sales Process Brian Millham, Salesforce’s Chief Operating Officer, noted that Salesforce is experiencing “elongated deal cycles, deal compression, and high levels of budget scrutiny.” This means that getting a B2B sales prospect to say “yes” takes longer, clients are paying less, and more people are involved in the decision-making process, causing further delays. This results in frustration for software sales teams, uncertainty for marketing budgets, and broader impacts on related industries. Impact on Other SaaS Providers Workday, a SaaS application business, has lowered its revenue forecasts for the year, citing that larger customers are taking longer to finalize deals in a wavering economy. CEO Carl Eschenbach highlighted that although win rates remain strong, there is increased deal scrutiny compared to previous quarters. This sentiment is echoed across vendors selling customer experience or employee experience software. Marketing Budget Constraints Marketing leaders at customer experience software companies have described the current situation as a “tin-can” scenario when looking for marketing budgets. Despite many companies claiming that their customers are their top priority, economic anxiety leads to cuts in customer experience technology investments. Leaders are questioning the critical need for such technology, and many industries are answering with caution, reflecting a shift in technology purchasing decisions. The Role of AI in Customer Experience There were high expectations for new AI additions to software products, but the results have been mixed. Cosimo Spera, founder of Minerva CQ, noted that many companies testing AI solutions to improve customer experience have reported slow adoption by agents, resulting in increased agent handling time and costs without significant improvements in customer satisfaction or net promoter scores. Joe Fernandez, who founded Klout and is now building AllUp, remarked that companies are in a “wait and see” mode regarding AI, preferring to see stable outcomes before investing heavily in new products. Customer Experience Declines A recent WSJ article reported that customer experience in the U.S. has declined for the third year in a row, based on a Forrester report analyzing consumer perceptions. Consumers are skeptical, feeling that higher prices are not yielding better experiences. This global trend impacts various industries, underscoring the interconnected nature of today’s economy. Rethinking Contact Center Strategies Contact center consultant Michele Crocker, who has nearly 30 years of industry experience, advises companies to rethink their contact center operations rather than making sweeping cuts. She suggests optimizing organizational design and staffing, eliminating unnecessary recurring subscriptions, renegotiating vendor prices, auditing IT expenses, and considering more shared services. Crocker emphasizes the need for a leadership talent assessment to ensure the right leaders are in place to implement strategic growth agendas. She also highlights the potential savings in software costs through renegotiations and the importance of closely monitoring software licenses to avoid waste. A Contrarian Approach In times of economic downturn, a contrarian approach might be beneficial. Despite the slowdown in B2B spending, doubling down on customer experience initiatives could yield significant long-term benefits. Superior customer experiences lead to higher retention rates, increased word-of-mouth referrals, and greater customer loyalty. As many companies cut back on customer experience programs, those that maintain or enhance their efforts will be well-positioned to excel once the economy stabilizes. Like Related Posts Salesforce OEM AppExchange Expanding its reach beyond CRM, Salesforce.com has launched a new service called AppExchange OEM Edition, aimed at non-CRM service providers. Read more The Salesforce Story In Marc Benioff’s own words How did salesforce.com grow from a start up in a rented apartment into the world’s Read more Salesforce Jigsaw Salesforce.com, a prominent figure in cloud computing, has finalized a deal to acquire Jigsaw, a wiki-style business contact database, for Read more Health Cloud Brings Healthcare Transformation Following swiftly after last week’s successful launch of Financial Services Cloud, Salesforce has announced the second installment in its series Read more

October 18, 2023in Technology