How to calculate Margin of Error and other stats for NPS®

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Your boss walks in with a chart of the last 12 months of transactional Net Promoter® survey results. He’s not happy because the score went down last month. Looks like you’ll have to hunt around to find a reason for the change; or will you?

Just because your survey score has gone down, or up, doesn’t mean that there has actually been a change in the overall business NPS. It might just be a fluke of the sample you have collected. The change might be within the Margin of Error. [Read more…]

Transactional Customer Feedback: 6 Problems You Will Face and How to Fix Them

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When you start out on your transactional customer feedback or Net Promoter program everything looks rosy but there are six issues that you will run into all too soon.

Here are the problems you will face and the solutions. [Read more…]

Case study: nib health fund’s Successful Net Promoter Score® Implementation

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Over the last 12 months, Genroe has been privileged to work with nib health funds (one of Australia’s fastest growing health funds) to help them evolve their Net Promoter Score processes. In that time, we helped them implement CustomerGauge, an end to end, integrated, Net Promoter Score data collection, reporting, analysis and action system.

In the past, nib has allowed us to publish insightful information in two blog posts:

Now, the full story behind the successful NPS implementation process has been captured in a new case study: nib health funds: Checking Up On Customer Loyalty.

In this case study, nib offers more insights into the changes they have made using NPS insights: [Read more…]

Is your company too hard to deal with: how do you know?

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It always amazes me the trouble companies go to secure new customers and then just throw them into a bucket labelled “Customer”, never looking at them again.

Well that bucket has a lot of leaks and companies are themselves the ones hammering in the holes. Many times you can improve customer retention by just plugging a few of those holes. Here is a recent case in point. [Read more…]

Customer Loyalty Surveys: Do you include all 3 critical elements?

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The starting point when designing customer loyalty feedback programs should be understanding what your customers care about and how well you are meeting their expectations. Unfortunately, many attempts at customer loyalty surveys fail to include all three critical elements required to collect that understanding and so fail to provide useful information to the business.

By not including all three critical elements the results of many customer loyalty surveys are worthless. Don’t get me wrong, the results are often interesting but ultimately worthless because you get results but have no idea what to do with them. [Read more…]

5 Steps to Effective Customer Feedback Programs

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Increasingly, organizations are becoming dissatisfied with running customer satisfaction surveys and turning instead to designing and implementing customer feedback programs. The reason is simple, after 10 years of running national customer satisfaction surveys the American Customer Satisfaction Index has, basically, not moved at all. This is despite industry reportedly investing USD 800,000,000 each year on improving customer satisfaction.

So what to do?

It has become clear that it’s not just about satisfaction. In order to improve their businesses companies must to listen customer feedback and change what they do to improve customer loyalty. The real goal is to understand and improve the areas of the business that drive customer loyalty.

In my experience, there are five key steps to implementing good customer feedback programs. [Read more…]

How to Set Net Promoter® Targets for Your Organisation and Staff

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Once you have the three prerequisites to setting Net Promoter targets in place, you can move on to setting targets for your organisation.

Give local targets not company wide targets

The cultural and industry factors that impact Net Promoter Score® are wide and impossible to accurately predict. Between similar countries, the same industry can have vastly different scores. Within countries, different industries can have vastly different scores.

To counter this, you need to provide targets at a “local” level, whatever local means in your circumstance. In a global company, this probably means not giving each operating country the same target. In a national company, this means not giving every operating division the same target. [Read more…]

Surveys: Should you report based on “sent date” or “received date”

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Recently, a customer asked, “In terms of “best practice”, do you have a view on whether NPS should be calculated based on the date a survey was sent or the date of the response?”

My response was perhaps not as specific as they had hoped : “It depends.”

In many ways, it doesn’t matter which you choose so long as you stay with the same date. The client was concerned about being “most accurate” when calculating the score but this is a fuzzy concept here. “Most consistent” is probably more useful idea in this case. A consistent NPS data collection process is key in obtaining data that you can trust and action. See this blog post for more on this topic: Three Prerequisites to setting Net Promoter targets.

When running a transactional survey approach, another date that could be used is the order date or transaction date. If you use this date, you can potentially tie changes in the customer scores to events in the order or touch-point process. This can be very useful in the root cause analysis process. [Read more…]

Three Prerequisites to Setting Net Promoter® Targets

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What gets measured, gets done, or so the saying attributed to the great management guru Peter Drucker goes. At some point in your best practice Net Promoter implementation, you are going to want to, in fact need to, start setting NPS targets for your staff and organisation. This is not a trivial exercise.

There are three prerequisites you need to meet before you can set targets. Once you have those in place, you can look at setting improvement goals for the organisation. [Read more…]

Case Study: Beating the Market with Customer Satisfaction

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If you’re looking to boost customer satisfaction, one of the most promising places to start is customer service. Unfortunately, it’s also a place where long-term goals tend to buckle under short-term financial pressures. Companies try to meet Wall Street’s immediate demands by cutting costs through automation and outsourcing—despite a growing body of research conclusively showing that customers are fed up with lousy service and that increased satisfaction has a positive impact on consumer spending, cash flow, and business performance.

In a groundbreaking 2006 study, University of Michigan business professor Claes Fornell and colleagues showed the relationship between customer satisfaction and financial success by creating a hedge portfolio in which stocks are bought long and sold short in response to changes in the American Customer Satisfaction Index (ACSI). Developed by the University of Michigan’s National Quality Research Center, the ACSI is an indicator of economic success that reflects levels of customer satisfaction with goods and services purchased from about 200 companies in more than 40 industries; it’s based on interviews with more than 65,000 U.S. consumers each year. [Read more…]