3 Vital Steps before setting NPS goals for your team-Omoto

3 Vital steps you need to do before setting NPS goals for your team

The famous management guru Peter Drucker said: “What gets measured gets managed”. However, the biggest mistake that most organisations make is setting targets too early, before they have a good sense of what the score will be and what improvement is possible. Typically these targets get set in the first weeks or months of a Net Promoter (NPS) implementation, when everyone is keen and optimistic.

Invariably after the first few surveys management will say “our goal should be to improve our score by “X points”. In our experience, “X points” is almost always too high, and the chances of achieving that goal are low. If you want to feel good about hitting targets and moving forward, wait until you have a good feel for the data before setting the target.
NPS 3 vital steps

Here are 3 vital steps you need to keep in mind before going setting improvement targets for NPS:

  1. Build trust among your employees on the system: If you are implementing any new system, rule at any organization then the employees become your customers. Especially if it is a system like NPS which might in some way be a reflection of employees’ performance. Like your customers, your employees use this system. Sometimes, more than you do. And your customers are only going to buy a product from you if they trust you. So, it is important to develop the trust in your employees about the system and its effectiveness before you jump right ahead in setting up the targets to your employees to improve the score. A few tips on how this can be done:
    1. Should come from top: An NPS program needs to trickle from top to bottom to make it a success. The initial phase is about senior management buy in and defining the corporate governance structures that is required to drive change. Identify the teams to run the Net Promoter System as per the governance structure, their key members and the charter of these teams.
      NPS 3 vital steps
    2. Low hanging fruits: Once the system is in place its important to quickly showcase some result. Ample effort has been put in establishing this system and some early result instills faith in it. The changes can be as simple as easier client interfaces or empowered front-line employees. If you can show uplift in your NPS score you then you are on the right track. Linking it to higher conversation rates or the bottom line is even better.
    3. Connect actions with improvements in NPS score: Your employees should know that they can have an impact on the NPS, that their actions would help improve NPS. For this it is important to show them how their actions affect the NPS scores. Connect the outcomes of the NPS scores to the work done by the employees, that way you can reassure them that their actions can help improve NPS scores.

Click HERE to learn the secret of building a Customer Focused business

  1. Keep the basics of statistics in mind: NPS is like any other survey. So, the basics of statistics need to be kept in mind. For any NPS data that is collected, at a particular confidence level, it is important to collect more data for NPS surveys than others. This is because to calculate NPS we subtract the percentage of promoters and percentage of detractors. And like any other statistical measure there is a margin of error that exists. If the NPS variation between two time points exists within that margin of error then there is nothing to worry about. Read more about how to calculate this margin of error and sample sizes.
  1. Collect data frequently and consistently: The accuracy of NPS depends on constant flow of data. For this it is important to collect data frequently. Most of our customers collect data on a daily basis. There are a few companies which collect data on a weekly or monthly basis as well. Change in the frequency can affect the NPS score as well. Hence it is important to collect data at a constant frequency. When we talk about consistency we are referring to the channel through which the feedback is collected. Because channel of feedback can also affect the NPS score. For eg (source: Bain & Company): a restaurant chain used to collect the data of people who have completed their transaction. The Net Promoter Score came down to be 40%. However, they tried to collect the same NPS score of a sample of their customers through Email channel. The NPS score came out to be negative 39%. Hence, it is important to understand which channel works for you both in terms of quality and quantity. Then keep using that channel.

To summarize, don’t jump and start setting targets for your team to improve NPS. Focus on building trust and confidence around the system, understand the base NPS that you are at and show your team how their actions can improve NPS. Then start setting targets to improve NPS.

Click HERE to learn the secret of building a Customer Focused business

Vigour in CX Initiatives

Do your CX initiatives not have the same vigour as sales initiatives? Here’s what you need to do.