Improving Customer Loyalty Increased customer retention Lengthened customer retention More products per customer More customers Cost of servicing may drop Customer referrals Loyal customers are less price sensitive NPS Driving advocacy in the enterprise 4 SatisfactionLoyaltyAdvocacy
Play the NPS Customer Game Your favourite bar Your favourite drink (just poured) Ultimate Question How likely are you to recommend your pub to a friend or colleague? Score 0 – 10 NPS Driving advocacy in the enterprise 6
Net Promoter Score NPS Driving advocacy in the enterprise 7 PromotersDetractors Reduce the Detractors: Fix the broken parts Call downs Reduce the Detractors: Fix the broken parts Call downs Customer First : Branded Experience Promoters Detractors Create more Promoters Deliver a differentiated and consistent brand experience Create more Promoters Deliver a differentiated and consistent brand experience
Three Customer Clusters Promoters – Those customers who have the highest rates of repurchase and referral, and will be advocates for your business Satisfied – Passively satisfied customers stay with a particular company more due to inertia than true loyalty They would move for a better deal Detractors – Those customers (or employees!) who spread negative word-of-mouth comments about the company Negatively impacts companys reputation, ability to attract new customers and employee morale NPS = % of Promoters - % of Detractors NPS Driving advocacy in the enterprise 8 9 and 100 to 6
What is the norm out there? The average Net Promoter Score across over 400 companies in 28 industries is just 16% Top performers out there have an NPS of 75-80% Harley Davidson 81% Amazon 73% Apple 66% NPS Driving advocacy in the enterprise 9 Source: Bain, the Ultimate Question
On to Loyalty and Advocacy Know what matters to your customers Know how you stack up on these measures Do something to fix them Possible measures NPS Driving advocacy in the enterprise 10 Drivers of satisfactionPerceived value Service level satisfactionCompetitiveness of fees Product level satisfactionHow well you listen Importance vs satisfactionThe closeness of your relationship Likelihood to recommendLikelihood to transact Likelihood to extend the relationshipRelationship strength
NPS Case Study in Symantec Not only have they achieved over 50% increase in their Net Promoter Score (NPS)……but they have seen improvements in areas such as support satisfaction, support costs, and call efficiency. Taking action on feedback Reduce install failure rates from 11% to 0.3% Improve installation performance 500% to achieve 43s Improve performance and reduce memory usage from 80Mb to 4Mb Common metric creates collaboration between departments to improve customer experience and increase loyalty 30% reduction in support costs 10-12% reduction in call times NPS Driving advocacy in the enterprise 11 Source: Satmetrix Symantec Case Study.