We all know that NPS® helps thousands of companies around the world through its survey methodology. What you may not yet know is that this metric has evolved into a new version, NPS® 2.
To give you some context, NPS® was long used solely as a score, not as a customer experience management system. And that's exactly what the new NPS® methodology does: it's become a system for managing customer satisfaction and experience .
We've mentioned in other articles that the Net Promoter Score℠ became the Net Promoter System℠ , remember? Yes, the NPS® methodology has also evolved in recent years, as the marketing landscape has evolved along with it.
So let's talk about how NPS® 2 works and what changes it has made:
What is NPS® 2?
There is no exact definition of NPS® 2. What you need to keep in mind is that the NPS® has evolved from a data- and research-driven approach to an integrated system that prioritizes the customer journey , not just survey data.
NPS® 2 emerged when the authors of the book The Ultimate Question identified that companies that were having success with NPS® were following the same path, which we will describe in the next topics.
But remember, the key to NPS® is not the metric itself, but the closing of the loop you create with your customers or employees after the action.
NPS® and NPS®2: Understand the difference
NPS® improving the customer experience.
However, the focus now is on using the metric as a customer satisfaction management , not just a measurement methodology. Furthermore, the customer journey must be considered throughout the customer lifecycle.
To help you understand better, we have separated some topics between the differences:
Focus on the NPS® system
As I mentioned earlier, the shift now is to focus on the customer journey and use the score solely for guidance. After all, if you're focused solely on the score, you end up limiting the actions you can take.
Furthermore, the idea is to monitor the entire customer journey, not just parts of it. It's the only way to ensure you're always focusing on delivering the best customer experience during each stage of the customer lifecycle.
As we've discussed in other articles, the NPS® score is more than just a number. It can be volatile, and you need to focus on several aspects (such as the margin of error, the response rate , and the number of people who respond, to name a few).
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Use of external data
Understanding customer needs is essential to ensuring growth and extending their useful life within the company, and for this, the variety of data sources is very useful in responding to this challenge.
While NPS® surveys offer excellent insights into how your brand, service, or product is perceived, there's much more to explore.
NPS® 2 expands to more data sources, from social feedback to operational data, for comprehensive insight into the customer journey.
By analyzing different sets of information, the new methodology aims to effectively embrace this diversity of data and drive continuous improvements across all aspects of the business.
Here are some examples of additional data sources that NPS® 2 takes into account:
- Data captured during conversations with customers;
- Unstructured feedback (essentially, comments left by customers on social media);
- Operational data ( help desk , CRM, ERP, etc.)
Loop closure at all stages
Instead of focusing solely on winning back detractors, the idea is to focus more on engaging and encouraging neutrals and promoters.
While it's crucial to keep your detractors low, you should also focus your efforts on building relationships with your promoters, as this is more beneficial in the long run. In fact, according to a study by the Institute of Customer Service , on average, loyal customers are worth up to 10 times more than their initial purchase.
The more you engage with promoters and nurture their loyalty , the more likely they are to become brand advocates and start helping your business acquire new customers.
Additionally, closing the loop can also help you innovate the customer experience by analyzing the stages of your journey where customers are “handed off” from one department to another.
The first loop involves frontline employees, where customer feedback is provided and customer service acts on it. This feedback can now be leveraged to learn more about the root cause and find solutions that strengthen customer relationships .
The second loop involves the company's leadership level, which should focus on improving the overall customer experience, relying on the data collected in the survey.
The third loop occurs at the executive level, which directs efforts toward developing a quality communication strategy between customers and employees, and also closely analyzing the numerous categories of customers (so you can offer exactly what they want).
Continuous measurement of customer experience
The idea of conducting seasonal surveys at the same time of year no longer holds water. According to the NPS®2 methodology, for a real change in customer satisfaction, experience, and loyalty, customer data must be part of a daily information flow.
When a process like this can be fully integrated into your business and is conducted alongside timely NPS® surveys (during different phases of the customer lifecycle), that's when you can gather enough relevant information to make a meaningful change that will truly impact the customer.
Data integration
When NPS® first emerged, few companies were aware of its application to their businesses. According to Satmetrix , many companies began measuring NPS wherever possible, resulting in fragmented and ineffective data.
NPS®2 aims to bring all data together into a single, integrated system that can provide companies with the framework they need to better understand and address the customer experience .
Involvement of the entire company
Another extremely important point that makes all the difference in adopting a customer-centric culture is that all employees and departments within a company must have access to customer data collected through these surveys.
NPS®2 addresses the fact that you need to spend more time finding ways to make the feedback you collect easier to consume than on practices to collect responses.
The idea is to use engaging formats to convey data to your employees to ensure everyone engages with it. A good example of this would be a company newsletter that displays all the data through infographics or videos, as visual content is generally more engaging than plain text.
Conclusion
The Net Promoter℠ methodology is considered one of the most effective ways to measure, manage, and improve customer experience. With NPS®2, you can take it to the next level by creating a customer-centric .
This not only helps you find out what customers think of your brand, but also provides insight into your company's future financial health, as there is a direct link between NPS® and corporate growth .
Apply the tips in this article to your company and ensure a better future for your business.
Experience metrics bring us clarity, control, and most importantly, inspire action.
Lucas Hansel, CPO Harmo
NPS is a registered trademark, and Net Promoter Score and Net Promoter System are service marks, of Bain & Company, Inc., Satmetrix Systems, Inc. and Fred Reichheld.
