The first step to creating a customer experience measurement program that really works, is to design the program. That means selecting the right measure and making some key decisions about how your program will operate.
If your organization is new to Cx measurement, I highly recommend that you start with a simple, easy to understand measure called the Net Promoter Score (NPS).
What is NPS?
Net Promoter Score was developed by Fred Reicheld and Bain and Company. The model is based on research that determined that one question - coined the “Ultimate Question” - is the best predictor of true customer loyalty. Reicheld found that the answer to this one question was predictive of exhibiting the following loyalty behaviours:
Recommend - tell your friends (good or bad)
Repurchase - buy the same things again
Extending Purchase - buy other product and service offerings
Provide feedback - give you input to co-design products and services or make improvements
Easy to do business with (low cost) - fewer escalations, calls, etc. drives lower cost
The Ultimate Question is simply stated as:
“On a scale of 0 to 10, how likely are you to recommend [your company] to your friends and family.”
The research showed that the responses could be grouped into three categories based on their scoring of the Ultimate Question;
A score of 0 to 6 are called Detractors - Exhibit negative loyalty behaviours.
A score of 7 or 8 are called Passives - Do not exhibit positive or negative loyalty behaviours.
A score of 9 or 10 are called Promoters - Exhibit positive loyalty behaviours.
Calculating NPS
The NPS score is the proportion of respondents that were promoters less (net) the proportion of respondents that were detractors. The score is expressed as a number from -100 (all detractors) to 100 (all promoters) and everything in between.
In our upcoming posts, we explore how to DEPLOY the survey, ANALYZE the results, share FEEDBACK and then, most importantly, ACT on the results. Follow these simple steps and you can start collecting customer feedback that will transform your organization by creating loyal customers and long-term growth.
We can help
Chapman Management Solutions has deployed Cx measurement models at large and small B2C and B2B businesses. We can help you to implement a simplified approach to get actionable insights quickly. That’s how you create a Magical Customer Experience that will deliver long-term, sustainable growth.
Great post thankyyou