Net Promoter Score: Ways to turn loyalty into a competitive advantage

Written by Buljan & Partners Consulting

net-promoter-scoreDriven approaches to innovation don’t always grow in line with company
expectations. The hard truth is that it takes more than good intentions to bring innovation to a culture based around the consumer.

A customer-centric company is born out of a rethinking of the culture of
the company, which means teaching employees new ways of thinking and acting.
To what end? To generate a loyal and enthusiastic customer base.

What skills are needed to achieve those results?

For years it has been shown that companies with a high NPS (Net Promoter
Score, an indicator that measures customer loyalty and brand strength)
significantly outperform their direct competitors.

The NPS is an attempt to answer the question: How likely are people to
recommend a product or service?

Fred Reichheld and Rob Markey, authors of the best-seller ‘The Ultimate
Question 2.0: How Net Promoter Companies Thrive in a Customer-Driven World’,
suggest a number of essential attitudes that many companies have adopted to
improve customer loyalty .

Get more information about your most loyal customers

How much do you really know about them? Most companies work hard to
determine the causes of customer dissatisfaction. To beat the competition,
Reichheld and Markey believe you need to determine the sources of customer
satisfaction. If it is derived from the quality of the product, what is the most significant feature? If it is about the customer’s experience, what about it was impressive?

For Reichheld and Markey, maintaining a close relationship with your
customers “requires promoters to develop  effective mechanisms to keep
such close contact.'”

Tailor the quality of your service to meet consumer needs

Your competitors may be offering something that you have not put on the
market, as a competetive tool. Through a study of customer satisfaction you
can find out which needs are still being unmet.

Training your employees, according to Reichheld and Markey, stems from
“expectations, guidelines and a set of tools your employees can use to
succeed.'”

Regular meetings and communication with the CEO of the company can be way
to reinforce this basic idea of ​​the centrality of the customer. In addition, to emphasizes the importance of learning new ways to interact with customers.

According to Markey, a leader can help employees figure out where the
interactions are going wrong, and how to improve them. The author gives an
example of a bank that pursues a policy based around the customer. The
company chose four of their best team leaders, seasoned employees in
customer relations, and asked them to call back a number of key clients to
reflect on the impact of these new business practices.

When people have the opportunity to share their experiences and practices with
the rest of his team, the learning process is accelerated.

Every business needs a core team to analyze the data and look for new
patterns in consumer behavior. Customer feedback can reveal patterns that might
not be apparent for a single professional working independently.

A system that looks to the Net Promoter Score as a benchmark brings with it
a broad range of implications, beginning with a change in the culture of the
company: “‘people are asked to take controlled, measurable action, in order
to build loyalty and enthusiasm among customers. “It is essentially the
workers themselves who must learn to achieve those results.

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