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A year ago, we published a White Paper about how to integrate data from NPS® surveys into your CRM strategy - thereby aligning the objectives of the marketing department and the Customer Experience team. In this post, we will delve deeper into the specific ways that NPS data can be used to predict which customers will churn. This approach can evolve your NPS program beyond “looking in the rear view mirror” to see what made customers happy/unhappy...

  1. Gaming If your NPS® survey is triggered by a manual process e.g. a staff member selects the customer for a survey, this will allow staff to game the system and avoid sending surveys to unhappy customers. NPS surveys should be offered to all customers using an automated process e.g. triggered after a transaction. This is especially important if staff bonuses are linked to NPS. 2. Complexity If your NPS survey asks the customer 10 demographic questions before the...

I have been working on a methodology to calculate the incremental value that can be gained by pushing a customer up from a lower NPS® segment (e.g. Detractor) to a higher NPS segment (e.g. Promoter). Simplicity is important, so here is my 7 step guide to help you with the calculations: Step 1 Select customers that have completed the survey more than one so you can measure their change in scores over time Step 2 Separate the responses into 2 time...

Even though I have been working at Resonate for many years, the level of innovation never ceases to amaze me. We have evolved over time from offering bespoke CRM solutions, online communities and more recently Closed Loop Feedback Programs. However, one basic principle underpins everything we do, and that is helping clients use customer insights to improve business decisions. In the last 5 years, we have invested heavily to build a suite of bespoke technical platforms and...

There are many different methods for gathering NPS®. Some organisations add the NPS question to their long established customer satisfaction survey. This avoids duplication but can make the surveys very long. Other companies capture only the NPS and do not give the customer anywhere to write their comments. This is a wasted opportunity because the NPS without any context is of very limited value. We usually recommend that surveys be as short as possible – but there...

If you’ve been running NPS® surveys for your traditional channels (stores, call centres, mail order) and you now want to include your online channel, here are some considerations: The size of the prize What proportion of your sales currently come from online? What is your stretch goal for the proportion of sales from online channels over the next 3 years? No matter how small the % is now, it will grow. Online is the fastest growing channel and your...

The type of customers that respond to a NPS® survey can vary greatly from company to company. Factors affecting responsiveness could include sector, channel of communication (e.g. email, SMS, in store tablets), demographics (e.g. Gen Y, Gen X), the quantity and relevance of your other communications (e.g. promotional emails, Facebook posts), the use of incentives (e.g. prize draw) and how engaged your customers are with your brand (brand fans v. not). It is near impossible to accurately...

As proponents of NPS® theory, we believe that the “would you recommend” question is valuable for predicting future business growth. But the simple nature of this customer measure does leave some questions unanswered. For example, does the Promoter (person who is highly likely to recommend you) actually do so? On the other end of the scale, does the Detractor (person who is highly unlikely to recommend you) actually recommend you anyway – albeit reluctantly? Or maybe they...

If you have ever been sceptical about the Detractors segment including customers with NPS® from 0-6, we have a couple of tips for you. Firstly, you can create 7 Detractor sub-groups based on their NPS: 0, 1, 2, 3, 4, 5 and 6. Then profile each sub-segment by spend, visit frequency, loyalty/share of wallet, length of relationship, Driver scores etc.  Compare each group to see if there is a gradual increase in value/loyalty as the NPS increases...