I have had an interesting observation while helping companies set up and use the Net Promoter System® (NPS). Net Promoter companies or organizations that succeed with NPS have five distinctly common traits. Such organizations adopt the Net Promoter System and ingrain Customer Experience as a core part of their growth strategy. Most often, these traits are either apparently visible or they surface-up during the course of adoption of NPS in an organization. Interestingly, any company can develop these traits by deliberately working towards them.
Net Promoter Score is a key parameter to quantify and operationalize customer experience in an organization. It helps ingrain CX in the company’s culture and, most interestingly, such companies look a lot like the ones mentioned in the book: The Ultimate Question 2.0. Let me introduce the five traits of the Net Promoter Companies:
1. They differentiate ‘good’ profit from ‘bad’ profit
Net Promoter Companies know the difference between ‘good’ and ‘bad’ profit. Profit made at the expense of customer experience will not be sustainable. Hence, it is termed as bad profit. True Net Promoter Companies not only embody ethical business practices but also ensure that they deliver great customer experience, thereby earning good profits. Net Promoter Companies align their promises with what their customers expect and with what they can deliver. They regularly measure how effectively they deliver on their promise and ensure they course-correct as soon as they see signs of bad profit.
2. They scrutinize annual reports for CX insights
The annual report is a reflection of a company’s performance in the past year. Net Promoter Companies use this as an opportunity not just to reflect on how they performed financially but to check customer loyalty. This quantification of CX requires tracking NPS and ensuring the sanctity of the feedback data to the same degree as accounting data. This helps to communicate both externally and internally their focus on improving customer experience.
3. They ensure that KPIs are not just sales centric but customer centric
Traditionally, the sales team’s performance is measured based on how well it meets the sales target. However, measuring just the sales numbers does not help in understanding how this revenue target is achieved. There is no way to find if it is at the expense of customer experience. To keep a check on this, Net Promoter Companies also measure NPS right after the sale is completed. By doing so, such companies are able to keep track of whether the sales team is building the right expectation for new customers and whether the organization is doing a good job at meeting those expectations. Then, the same is tied to the sales team’s performance measure. This ensures that the sales team isn’t focused only on meeting its target but on customer experience too.
4. They establish and maintain personal connections with their customers
Multi-location and multi-channel presence of an organization and its customers requires that both interact with each other across channels and locations. In such a dynamic environment, it’s not easy to maintain the personal connection. Nevertheless, Net Promoter Companies use technology effectively to provide a consistent and personal experience to their customers. Such companies understand that it is imperative to make strategic technological advancements in the way they interact with their customers in order to improve the customer experience. Today’s customers expect that businesses deliver a personal experience even though it might not come from a person directly. Net Promoter Companies invest in such technologies to ensure they are meeting this expectation.
5. They operationalize Customer Experience
Capturing customer feedback without taking action is futile. Nothing irks a customer more than no acknowledgment of and no further action on his feedback. Net Promoter Companies set up the right processes to take quick action on customer feedback. They operationalize NPS feedback and train their employees on the closed feedback loop process. Net Promoter Companies also mine the feedback data for insights that can help make long-term strategic decisions to improve customer experience.
I believe these are traits that have helped brands like Apple, Amazon, Air BnB and the like develop a massively loyal customer base. By developing such traits in your organization, you too can build a brand that is loved by millions of customers.
Image Source: Digital Spy