NPS segments

In Part 1 and Part 2 In this blog series, we have already given an introduction about the benefits and added value of NPS as a key performance indicator for customer-centric companies. A direct link between NPS and business growth is not easy to prove. But how is it that such companies (based on our experience with CFMUsers) with a promoter surplus with NPS values ​​in the range of 60-70 record sales jumps? If you look at NPS not as a metric alone but as a basic metric within the framework of the Net Promoter System, you only begin to understand the actual added value. NPS is the most popular and widely used customer-facing KPI. In order to understand what makes NPS so successful in the area of ​​CX management, in this third part we give further insights into the Net Promoter System based on the customer segmentation it contains into detractors, passives and promoters.

Detractors

Einstein DetractorThis customer segment (NPS rating 0-6) can damage your company significantly. Not only are you likely to lose the customer yourself - negative experiences are passed on more often and can even go viral online. Detractors therefore also have a direct impact on the total NPS score. As our RCA failure cause analysis shows, detractors are very often dissatisfied with customer service. So the first priority here is to identify the problems that can be hidden in the various customer service processes. Often these are problems that can be resolved with a little effort and do not result in permanent additional costs. For example, more transparency or additional information at certain touchpoints can convert a large number of detractors into passives.

In order to systematically track the conversion of detractors into passives or promoters, we use our closed-loop feedback system with after-NPS surveys. After an optimization measure, new feedback is specifically obtained in order to check the effectiveness of the measures. Customers whose complaints are heard and lead to improvement often end up becoming a company's biggest promoter.

Passive

einsteinPassivePassives (NPS rating 7-8) are overall quite satisfied, but susceptible to offers from competitors. After all, functioning products and services are already required as standard. And anyone who thinks that in the end only the price is decisive is wrong - the difference between a passive, satisfied customer and an active, enthusiastic promoter has more emotional reasons. A particularly positive experience that we did not expect promotes emotional bonding. We wish this positive experience also for people who are close to us and recommend the brand to others, e.g. by giving away a product of the brand or a voucher.

So the top priority in this segment is to provide a surprise and to offer the passives something that exceeds your basic expectations. Small gifts or discount campaigns can be very worthwhile if you use them to address passives at the right moment. You create enthusiasm by using the in-depth insights into the emotions and desires that you gain with the feedback system for targeted measures and actions. This in combination with fast, efficient communication channels and the use of innovative technologies will help you to turn passives into promoters.

Promoters

einstein promoterOnce you have a majority of promoters (NPS rating 9-10) in your customer base, the goal has not yet been achieved. Only now can you exploit the full potential of the Net Promoter System. Promoters are your company's ambassadors - they like to talk about your brand, they connect and spread positive emotions with it. Since social media, YouTube and online review portals are also gaining more and more influence, promoters are even more important in online marketing.

CX management here means exerting influence and involving the promoters instead of just watching. There are always two sides to interaction. And a promoter who also knows that he is helping a company will not continue to do so if he does not get anything in return. Here, too, gifts are of course welcome, but more important is the emotion - a promoter wants recognition and interaction with his brand. Targeted campaigns such as a personal thank you at the right time and the link via Facebook (e.g. via a positive video review that is shared) help to retain promoters and attract more.

At the same time, you will continue to optimize your brand image. Promoters should also ask you additional questions (under set conditions), as well as start bonus programs and targeted marketing campaigns - all of this are measures with which you not only increase customer loyalty, but also gain deeper insights into your target group and learn what makes the success and the future of your company.