Understanding the “Why” Behind Your Net Promoter Score (NPS)
Leveraging Data to Improve Your Customer Experience Strategy
Shep Hyken interviews Jason Barro, Partner at Bain & Co. and Founder of NPS Prism®. He talks about the importance of measuring and understanding Net Promoter Score (NPS) in improving customer experiences (CX) and driving business growth.
Top Takeaways:
- Net Promoter Score (NPS) evaluates customer sentiment and allows companies to compare their data with competitors. It helps identify areas where organizations may be falling short and prompts them to revise their current strategies for improvement.
- To improve customer experience, companies need to break down the customer journey into smaller episodes or touchpoints. By identifying which episodes create promoters (satisfied customers) or detractors (unsatisfied customers), companies can focus on improving specific aspects of the customer experience.
- Customers don’t just compare you to other companies within your industry. They compare you to the best experience they have ever had. It is crucial to examine why certain companies perform better than others. By analyzing what makes them successful, businesses can identify areas where they can improve and work towards closing the gap.
- Having a great product is important, but it can be overshadowed and rejected if accompanied by poor customer service. Likewise, even the best service may only temporarily excite a customer if the product fails to meet their expectations. Companies need to achieve a balance between product quality and customer experience.
- Plus, Shep and Jason talk about the NPS leaders in various industries, including automotive, groceries, airlines, and more. Tune in!
Quotes:
“Happier customers are more valuable to the business. They buy more, stay longer, and bring their friends into your business.”
“If everybody is making their customers generally unhappy, new players will enter and create new ways of meeting customers’ needs. When they create this new way in an industry with a lot of headroom, they will win.”
“If there’s a new way of solving a need that is dramatically easier, dramatically nicer, and dramatically more reliable, even if we are not trying it ourselves, we will eventually run into someone who is. We will hear about their experience, and it will start to impact how we behave.”
“If you run a business, you need clarity on where you actually stand with your customers, why you stand there, and how much it’s worth to be better.”
About:
Jason Barro is a leader in Bain’s Customer Strategy and Marketing practice. He is the lead partner and founder of NPS Prism ®, a customer experience and benchmarking service that provides businesses with actionable insights to build loyalty and grow sales.
Shep Hyken is a customer service and experience expert, New York Times bestselling author, award-winning keynote speaker, and host of Amazing Business Radio.
This episode of Amazing Business Radio with Shep Hyken answers the following questions and more:
- How can customer service levels impact customer behavior?
- How can businesses improve customer experiences by analyzing their customers’ journeys?
- What is the relationship between product quality and customer service in driving customer satisfaction?
- What are the key factors that contribute to customer loyalty and growth?
- How can organizations use data and insights from NPS to enhance their customer experience?
Originally published at hyken.com on September 12, 2023
