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Brought to you by Net Promoter Online Driving Business Success With Actionable Feedback

Kampyle eBook Net Promoter Online

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Page 1: Kampyle eBook Net Promoter Online

Brought to you by

Net Promoter Online

Driving Business Success

With Actionable Feedback

Page 2: Kampyle eBook Net Promoter Online

1 Introduction: Net Promoter Evolved

3 Chapter One: Vanity Metric or Actionable Feedback?

5 Chapter Two: Authenticity and Reliability

7 Chapter Three: Taking Action with Net Promoter Online

8 Chapter Four: Driving Change with Ongoing Accountability

11 Conclusion: Net Promoter Online – Driving Business Success

xi |Net Promoter Online www.kampyle.com

Content:

Page 3: Kampyle eBook Net Promoter Online

Online Business – A Natural

Home for NPS

With our world becoming increasingly digitized,

businesses have followed their customers online.

E-commerce, mobile apps and social engagement

have become intrinsic in doing business and driving

revenue growth.

Customer expectations have also increased with

access to rich information across multiple channels

creating well-educated and connected consumers.

Social media and online interactions make us more

closely engaged with our customers than ever before.

Despite all the changes, one thing remains the same.

When we look to boost our online growth and ROI,

customer satisfaction and loyalty is still key to success,

just as it is in the bricks and mortar world.

While NPS has been applied successfully offline for

measuring customer satisfaction and loyalty, the

unique conditions of the online business

environment call for the use of Net Promoter in a

more evolved way:

Combining NPS with the wealth of online

customer data and feedback for actionable

insights.

Using efficient and intelligent ways to

distribute and share this information for

increased accountability.

Utilizing this system for informed decision

making and driving digital growth.

What You’ll Find in This E-Book

This e-book draws upon our experience working with

thousands of companies worldwide and providing

NPS-integrated feedback solutions.

In each chapter we examine the intersection of NPS

with the digital environment, the challenges that arise

and the way Net Promoter Online – Kampyle’s NPS-

integrated feedback platform – successfully addresses

these issues, as follows:

Ensuring that NPS provides actionable insight

for the online space.

Ensuring that NPS-integrated feedback is

authentic and reliable.

Ensuring that NPS insights are efficiently

distributed to the relevant stakeholders.

Enjoy your reading!

Net Promoter Evolved Introduction:

Copyright 2012, Kampyle Enterprise Feedback Solutions |1

Page 4: Kampyle eBook Net Promoter Online

NPS for the Uninitiated

How NPS is Measured

The Net Promoter Score, commonly referred to as

NPS is a customer loyalty and satisfaction metric1. It

has been widely adopted by leading enterprises such

as Amazon, American Express, Apple, Cisco, Dell, and

eBay among others.

Measuring NPS is easy. Customers are asked, “On a

scale of 0-10, how likely is it that you would

recommend Company X [or Product X] to a friend or

colleague?”

The respondents are then segmented into 3 groups:

Detractors (0-6)

Passives (7-8)

Promoters (9-10)

You then subtract the percentage of Detractors from

the percentage of Promoters. The difference is your

Net Promoter Score

1 Net Promoter®, NPS®, and Net Promoter Score® are

trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.

The Impact of NPS

Extensive research by Bain & Co. indicates that the NPS question is successful in predicting customer behavior in areas such as: Customer loyalty and retention

Repeat purchases or transactions

Referrals, recommendations and word-of-mouth

NPS is more than a simplified performance indicator of customer satisfaction. It also helps management to get a quick and accurate picture of corporate health. Studies have shown: A direct correlation between NPS and business

success.

Companies with long-term profitable growth have

Net Promoter Scores two times higher than other

businesses.

Companies with high scores have an average

growth rate, twice that of their competitors.

Adding to the Popularity of NPS

With just one number, NPS is easy to understand.

NPS focuses your entire enterprise on the

overarching goal of customer satisfaction.

As an “open-source” metric NPS is easily adapted

to the unique needs of your organization.

A strong correlation between NPS and the success

of your business make it a worthy metric to work

on.

The NPS methodology enjoys a higher response

rate as it is short and mindful of the customers’

time (only one main question and possibly one or

two follow-up questions).

02 |Net Promoter Online www.kampyle.com

Page 5: Kampyle eBook Net Promoter Online

A Critique of NPS

NPS has been criticized for only measuring the

likelihood of customer recommendations without

identifying organizational problems or providing

direction for improvement. As a result the metric’s

proponents2 are now recommending what Kampyle

calls “closing the feedback loop”. By gathering more

detailed feedback the “why” behind the customers’

lack of satisfaction is revealed, enabling an informed

strategy for converting Detractors into Promoters.

Net Promoter Online offers enterprises looking to

use NPS for their digital assets, a platform for asking

the right questions in the right way, digging more

deeply into data, and taking appropriate action

with their newfound knowledge.

The Ultimate Question Done

Right

While the standard NPS “recommendation” question

is important, the follow-up question, or questions are

critical in discovering what drives the customer to be a

Promoter, Detractor or Passive.

Of course it is very challenging to extract insights from

such unstructured data, but free-text customer

feedback holds the key to make the changes that lead

to increased growth.

The experience of Kampyle clients using Net Promoter

Online shows the maximized value that is gained from

categorizing feedback and analyzing frequently

appearing themes.

2 Reichheld recently republished his updated book “The

Ultimate Question 2.0: How Net Promoter Companies

Thrive in a Customer-Driven World”.

“When we asked Kampyle to incorporate NPS in their online feedback platform, we gained a comprehensive, high-level view of our customer satisfaction level, along with the granular and actionable details behind it. This allows us to confidently make the changes necessary to improve the Swisscom customer experience and raise our Net Promoter Score.”

Markus Eberhard, Head of Selfcare and Digital Support, Swisscom.

Enriching Net Promoter with

Customer Data

In all industries, companies are interested in retaining

and growing their market share by exceeding their

customers’ expectations. However, each investment

made to improve user experience, must make sense

from a ROI perspective.

As not all customers are equal, those that bring the

maximum value are the ones that need to be catered

to the most. By segmenting the various profiles of

Promoters, Passives and Detractors, you can

determine if investing in improving the experience of

any given customer group will create a healthy profit

margin.

Vanity Metric or Actionable Feedback?

Chapter One:

Copyright 2012, Kampyle Enterprise Feedback Solutions |3

Page 6: Kampyle eBook Net Promoter Online

Driving ROI with Customer

Segmentation

Enhancing customer experience can be a costly

investment. That’s why businesses carefully

evaluate the ROI each customer segment can

potentially yield when deciding where to allocate

resources and funds. The following are common

characteristics that companies use to segment

Promoters, Passives and Detractors:

Demographic group

Geographic region

Language

Purchase history

Putting NPS to Work

Making customer experience a priority within your

organization is essential for targeting a generation of

well informed customers who take their business

wherever the overall experience pleases them the

most.

Managing Net Promoter Online for our clients has

proven that NPS can be an actionable metric.

Enterprises which have adopted NPS as their KPI of

choice, and are integrating it with additional online

feedback, are well positioned to gain unprecedented

visibility into the sentiment of their target market.

Net Promoter Online incorporates customer

segmentation, additional user data, and most

importantly feedback which identifies root causes.

This fully equips you to take action, make the

necessary changes to increase customer satisfaction

and ultimately, grow your overall ROI.

[Click above or visit blog.kampyle.com ]

Chapter One: Vanity Metric or Actionable Feedback?

Actionable Feedback?

04 |Net Promoter Online www.kampyle.com

Page 7: Kampyle eBook Net Promoter Online

All surveys, including Net Promoter, face the major

issue of the reliability and authenticity of data. There

are concerns that sample sets are not representative,

or that some sort of bias has crept in. Traditional

phone, in-person or email-based surveys, in both B2B

and B2C, are susceptible to the following problems:

B2B Environment

Traditional surveys are too long for executives

or key managers – usually the target of these

surveys. They either ignore them entirely or

pass them on to employees who are not

equipped to properly answer them.

Distributors or others in the supply chain

might be hesitant to voice negative opinions

about their suppliers or partners, in the fear

that they might be penalized in some way.

B2C Environment

When using paid surveys there is the risk that

responses are not authentic or representative

as respondents’ participation could be

motivated by financial incentives.

Relevant interactions or experiences might

have occurred days or even weeks before.

This increases the chance that specific details

will be hazy or completely forgotten.

Employees, such as sales or support

representatives, collecting NPS feedback

regarding their own performance, have been

known to manipulate the results.

Employees might focus on collecting feedback

from customers they know had a good

experience, while ignoring responses from

unsatisfied customers.

Customers might give more positive feedback

than really deserved because they are

embarrassed or uncomfortable sharing what

they really think about the person or

organization asking the questions.

Online Environment

When operating in the online environment, the

myriad customer touch-points and interactions

present a unique challenge. Traditional surveys –

even when delivered online – can’t hope to accurately

and reliably capture a true snapshot of the customers’

satisfaction level during every point of their online

journey:

By asking too many question surveys are not

attentive to customer time constraints.

By covering too many topics, surveys lose

relevance to the customers’ digital journey

and personal experience.

Chapter Two:

Authenticity and Reliability

Copyright 2012, Kampyle Enterprise Feedback Solutions |5

Page 8: Kampyle eBook Net Promoter Online

Net Promoter Online Fosters Accuracy and Reliability

The flexibility and choice found in NPS-integrated online feedback forms reduce many of the biases and problems

that plague traditional surveys:

Chapter Two: Authenticity and Reliability

Traditional surveys are too long,

ignored or filled out haphazardly.

Online feedback forms allow customers to share brief, high-level scoring or, if they have the time and are inclined, provide rich and detailed feedback.

Customers are uncomfortable sharing what they really think about the person or organization asking the questions.

As online feedback is unsolicited, many of the issues that cause customers to modify their feedback are eliminated.

Paid surveys are less reliable as participants can be motivated by financial incentive.

Time gap between survey and experience erodes accuracy.

Employees conducting the surveys can influence the results.

Surveys, even with numerous questions, usually have little relevance to the unique online interactions and experiences of each customer.

Customers have the option of leaving their feedback anonymously removing any discomfort of sharing negative comments.

With feedback collected while the customer is still engaged, important details being forgotten is not an issue.

Online feedback forms allow customers to share feedback of their own choice and on the subject of their interest.

Customers are able to leave feedback at every point of their digital journey, thereby providing a fuller picture of the overall customer experience.

Traditional Surveys Net Promoter Online

06 |Net Promoter Online www.kampyle.com

Page 9: Kampyle eBook Net Promoter Online

Insight Leading to Action

What should be clear by now is that Net Promoter

Online is not just an isolated score of your customers’

satisfaction.

It’s about understanding the reason behind the score

accomplished by collecting and analyzing additional

feedback and customer data.

This kind of business intelligence effectively

distributed to the relevant parties enables you to take

informed action, transform your organization and

meet your business objectives.

Closing the Loop Online

Insight into your customers’ profile as well as the

granular details of their issue, allows you to

confidently close the loop by reaching out to your

customer and making the necessary enhancements or

changes.

Alerted in real-time, your sales, support and operation

teams can convert potentially lost sales, provide

loyalty-building assistance and continually improve on

all aspects of the user experience.

Let’s have a look how Net Promoter Online drives

informed and profitable actions:

Website Optimization: NPS-integrated feedback

regarding product details, content, site

navigation, search, and other features, is routed

to the relevant team for optimization and

improved customer satisfaction.

Sales Enablement: NPS-integrated feedback

generated from the checkout page, that includes

keywords like “pricing”, “credit card” or similar,

can be forwarded to sales for immediate follow-

up. Sales representatives that are aware whether

they are dealing with a Promoter, Passive or

Detractor and are also informed about their

prospects’ concerns are better equipped to close

sales.

Economized Support: Excellent customer support

is an important ingredient for creating Promoters,

but can be prohibitively expensive. By categorizing

NPS-integrated feedback, low-level support

requests can be deflected with customizable,

auto-reply emails, while high priority items are

intelligently routed to a live support team.

Taking Action with Net Promoter Online Chapter Three:

Copyright 2012, Kampyle Enterprise Feedback Solutions |7

Page 10: Kampyle eBook Net Promoter Online

Accountability for Individual

Business Units vs. a Global View

When customers engage with several departments

such as sales, accounting or support within a single

interaction it’s essential that NPS is measured for each

distinct group to create accountability.

When Net Promoter Online alerts you that a specific

process or section on your website might be

problematic, or that a particular department received

negative feedback, there is no room for those in

charge to equivocate and avoid responsibility.

The accountability that Net Promoter Online creates

gives you a powerful management tool for

indentifying and incentivizing the people that can

make the enhancements you need.

However, senior management still needs a global view

of customer satisfaction and corporate health. To

accomplish this, NPS for different departments or

groups can be weighted and combined for a corporate

bird’s eye view.

Enjoying the Best of Both

Worlds Online

Using Net Promoter Online the process of either

combining or comparing scores across an organization

is completely streamlined. Customers tell you how

likely they are to recommend your company and why,

on any page or during any process on your website.

This feedback can be combined, measured and

analyzed providing an overall Net Promoter score for

the entire online experience. Simultaneously Net

Promoter Online offers a “localized” score with

granular information on each and every aspect that

contributed to the total score.

Yearly, Quarterly or Ongoing?

Many companies rely on measuring their NPS once a

quarter or even once a year. Kampyle clients have

found that these limited NPS snapshots are

insufficient for them.

Infrequent measurements undermine your goal of

being a customer centric organization. It transmits

a message to management and employees that

NPS is not important for company growth.

Measuring NPS on an ongoing basis improves

quality while reducing potential bias in survey

sampling.

Trending reports that are based on continuous

NPS feedback are more reliable than trending

reports based on infrequent feedback.

Ongoing NPS measurement can uncover

unexpected trends even when the score remains

the same, i.e. Detractors and Promoters are

increasing at the same rate.

In the fast-paced world of e-business, measuring

NPS once or twice a year is not sufficient for

making informed improvements that reflect rapid,

ongoing shifts in customer expectations.

Continuous measurement fosters innovation and

experimentation as the effectiveness of these

efforts can be analyzed on an almost immediate

basis.

In summary, the full, transformational power of NPS is

realized when measured on an ongoing, real-time

basis, as with Net Promoter Online.

Driving Change with Ongoing Accountability Chapter Four:

08 |Net Promoter Online www.kampyle.com

Page 11: Kampyle eBook Net Promoter Online

Bringing it All Together

As we draw to the end of this eBook, let’s summarize:

Net Promoter Online provides you a powerful set of tools which not only measure your customers’ loyalty and assess your online performance, but also actively support your digital business strategy.

Net Promoter Online incorporates follow-up questions and rich data segmentation that reveals root causes of customer dissatisfaction, and provides actionable insight for improvement and growth.

Net Promoter Online drives informed action based on customer feedback that allows you to resolve issues, make necessary enhancements, and convert Detractors and Passives into Promoters.

Net Promoter Online offers consistent and ongoing measurement that fosters data accuracy as well as creates accountability among managers and employees.

Net Promoter Online mirrors online customer

behavior and the realities of online business. NPS-integrated feedback can be gathered at any point of your customers’ online journey while being mindful of customers’ time and interests.

Ready to get started?

If you are looking to delight your digital customers and grow your ROI, consider integrating Kampyle’s Net Promoter Online into your digital strategy.

To benefit from Net Promoter Online you need a feedback platform that will allow you to discover – on every relevant web page and process – how many of your customers are Promoters, Passives and Detractors, and why.

Kampyle’s Net Promoter Online allows your customers to share their feedback quickly and intuitively without interruption to their online activity. It measures NPS, segments respondents with a wide range of variables and business rules, alerts relevant teams, and provides actionable insight.

To discover why Kampyle’s Net Promoter Online is popular with enterprises around the globe, contact us today at [email protected] !

Conclusion:

Net Promoter Online – Driving Business Success

Copyright 2012, Kampyle Enterprise Feedback Solutions |9

Page 12: Kampyle eBook Net Promoter Online

Listen. Engage. Convert.

Kampyle Ltd.

US: 1-855-KAMPYLE (1-855-526-7953)

International: +1-646-452-9480

www.kampyle.com

[email protected]

Request a Demo

Last update: February 14, 2012

About Kampyle

Companies worldwide rely on Kampyle’s cutting-edge,

online feedback platform to power VoC programs,

improve customer experience, and increase ROI. Using

Kampyle, businesses collect, analyze and leverage

feedback data for:

Actionable Insight: Drive informed user

experience enhancements and optimizations.

Qualified Lead Generation: Capture contact

details of feedback providers.

Sales Empowerment: Close the feedback loop in

real-time and increase sales.

NPS Measurement: Uncover root causes for

Promoters, Passives and Detractors.

Cost-Effective Support: Create economical,

quality customer support with automated

deflection and prioritization of feedback.

Kampyle’s feedback solution is used in all industry

verticals with wide-spread praise for scalability, easy

deployment and rich functionality, including features

such as:

Customizable, unobtrusive and intuitive

feedback forms that drive higher response rates.

Data segmentation and analysis that identifies

high-value customer opportunities.

Intelligent distribution and reporting that creates

accountability and ensures appropriate follow-

up.

Mobile feedback for mobile sites, ads and apps.

QR codes, multilingual feedback, and more.

Feedback Solutions