All retailers are aware of the importance of its NPS, but sometimes its consequences can go unnoticed and damage a brand to its core.
In 2013, Deloitte found that companies believe that CX is one of the vital points in competitive difference. Six years have passed, and this sentiment is more profound than ever.
PWC found that 73 per cent of customer agrees with the aforementioned statement. “Give customers a great experience and they’ll buy more, be more loyal and share their experience with friends,” Adam Mergist, from Clearlink, explained. With this in mind, despite the high percentage of customers concurring, only 49 per cent would say that they encounter a positive customer experience when they go shopping.
This is where the NPS (Net Promotor Score) comes into play. A company can state that it puts CX at the top of its priorities, but if the NPS Score doesn’t reflect that, it can do serious damage to the brand’s reputation. In a recent study by Clearlink, there can be a direct correlation to the NPS and a brand’s conversion rates, cancellation rates and profitability.
A Basic NPS Breakdown
The NPS is an index ranging from -100 to 100 that measures customer experience and predicts business growth. On average, if a brand’s business sits anywhere above zero, it’s considered ‘good’, above 50 is ‘excellent’, and above 70 is considered ‘world-class’.
The study found that for every point that a brand increases in the NPS, its conversion rate goes up 3.9 percentage points (on average). “The better customer service you offer and the better your brand perception, the more likely you are to convert,” Mr Mergist said.
Unsurprisingly, a higher NPS means a lower cancellation rate. Research shows that a promoter score saw a six per cent reduction in cancellation rates compared to detractors. This is a significant point for retailers, as cancellations often play a major role for retailers. This indicated that a higher NPS can support revenue growth and fulfilment.
How Can Your Brand Improve Its NPS?
Without a doubt, improving a brand’s NPS is easier said than done, but there are a few essential factors to consider when aiming to improve an overall NPS.
Start with prioritising AHT (Average Handle Time). According to a 2012 study by Forrester, 45 per cent of customers will walk away from a transaction if a company doesn’t address their needs effectively. In order to increase the NPS, it’s imperative that a company directs the customer to the appropriate person quickly. While a shorter AHT may sound like the answer to this issue, the Clearlink study found that a higher AHT may actually increase a brand’s NPS. Creating an efficient AHT may just be the link a company has been missing to help increase its NPS.
For others, pulling focus on experience over sales can be the key to falling in the NPS. “If you’re focused on the sale, it’s easy to forget the customer. What’s crucial to remember here is that providing an enhanced customer experience isn’t just about increasing sales,” Mr Mergist explained. As the study found, increasing sales doesn’t correlate with good customer experience, but increasing customer experience can heavily influence an increase in sales.
So, What Now?
Empathy is the biggest skill a company can master to increase its NPS. The energy that is put into the sales tactics should also reflect in its customer experience. “Implementing processes for identifying a customer’s stage in the buyer’s journey and predicting their intent so you can route them to the sales agent who can best address their needs will increase customer satisfaction and reduce average handle time, saving you money and building your reputation,” Mr Mergist explained.
Gathering data and examining what’s working, what’s not and how a brand can improve is the first step in making a difference. Listen to your customers, and take into account what they want to change. No matter if the customer makes a purchase, big or small or at all, be sure that they have a great experience while they’re visiting your site. This is a direct link to creating more brand promoters, which can lead to a higher conversion rate.
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