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Retain your customer with NPS


It’s so simple, that the essence of the Net Promoter Score can be drafted on a napkin. NPS can easily turn positive customer experience into profitable business growth.

The satisfied customer is the dream of every business. One’s feelings or experiences for a certain company could be measured and estimated by using Net Promoter Score (NPS). NPS was coined by Fred Reichheld in 2003. His idea was developed in collaboration with Satmetrix, which finds this tool for measuring customer loyalty so easy that they drafted its essence on a napkin.

To measure customer satisfaction it’s enough to ask one simple question in the satisfaction survey: how likely is it that you would recommend this company to a friend or colleague? Customers respond on a 0-to-10 point rating scale, where 0 is the worst and 10 is the best score.
They are categorized as follows: customers choosing 10 or 9 are promoters, 8 or 7 are passive, and those between 0-6 are detractors. You can track these groups and get a clear measure of your company’s performance through your customers’ eyes.

experience conceptual meter - Retain your customer with NPSPositive is good

NPS is calculated by taking the percentage of promoter customers and subtracting the percentage of detractors. The score is a number between -100 and 100. A -100 score shows that all of our customers are detractors, so they are not satisfied at all, while a score of 100 shows that all of our customers are satisfied promoters. Generally, a positive score is a good result, above 50 is excellent.

Companies running customers satisfaction surveys usually ask more than one questions, according to their goals. It is worth looking beyond and searching for the reasons why the detractors aren’t satisfied with the service. Personal contact with unhappy customers can increase the chance of retention. A positive customer experience leads to a profitable business growth. NPS can be used successfully also to measure the  performance of CC operators.

Measure of performance

Virtual Call Center uses NPS to measure customer satisfaction and CC operators performance since september 2013. – After every first customer contact each month we implement the NPS survey via IVR – said Péter Málhai business development leader (using the same solution is provided to their customers). Besides the phone surveys twice a year an online questionnaire is also offered to customers.

– NPS highlights the problems right away. It was interesting to see, once we launched a new software update, general high customer satisfaction dropped by 10 points, possibly because of small programming bugs. We listened to our customers feedback, made the necessary changes and since then NPS is constantly above 80 – told the business development leader.

The goal of Virtual Call Center is to provide high quality service to its customers, and to maintain a high NPS score. Under the performance measurement of their colleagues at the customer care department, NPS is not the single tool they can apply. To get a better picture and to have better understanding over the level of their service they combine this model with other KPIs as well.

– NPS reflects customer opinion regarding CC customer care and the solution provided. As an excellent tool to gain real customer feedback it is irreplaceable in customer retention as well. Solution providers have to focus not only on gaining new customers but to retain existing ones. NPS is a cost efficient method to strengthen the loyalty of existing customers – Péter Málhai concludes.