Acting on NPS feedback is only worthwhile if you get an eventual return on your investment. Naomi Kasolowsky, Senior Director of Business Consulting at Satmetrix EMEA, spoke to a full house, sharing her expertise on how to make NPS results actionable.
- Think about the program ROI before you even get started - create clear program objectives linked to business objectives. Measure the actual situation to have a baseline metric to compare against.
- Create a hypothesis about what drives customer loyalty and measure against it. What makes customers really angry? What makes customers really happy?
- Start by measuring what matters MOST. Don't measure everything!
Prioritize improvement based on what really drives loyalty. Invest in the right fixes, the ones that have the biggest impact for your customers and for your business. - Link NPS to business metrics: Customer retention, Revenue growth, Word of mouth, Customer repurchase, Customer lifetime value, Customer cross-sell, Cost efficiency.
Include NPS in the top 5 metrics of your organization. Organizations that do this tend to have employees who are more customer-oriented, and products and services that are a better fit with their customers' wants and needs. - Merge NPS with your balanced scorecard – how does NPS contribute at each level? For example, it can be measured from behaviour at individual touchpionts to customer experience to brand loyalty to financial measures such as reduced churn.
- Differentiate between hygiene factors and delight factors. Hygiene factors are things you have to get right to be in the game. If the company fails on a hygiene factor, that can create a "penalty to loyalty". At first companies have to get the important hygiene factors right...stop angering customers. Next, you need to start thinking about creating delight and getting a reward to loyalty. This is what gets 9s and 10s and turns your customers into loyal fans of your company. You only need a certain score on hygiene factors to avoid penalties…doing even better does not translate to increased loyalty. Focus on those items where delight highly correlates with increased loyalty.
- To identify hygiene vs delight factors, look into your verbatim comments. What do promoters talk about? Those are your delight factors. What do detractors talk about? Those are your hygiene factors.
Think about al of this before the feedback starts coming in, not after! - Analyze against your hypothesis, measure against your baseline metric to compare to to see if you improved.
- Don't stop there, keep measuring and improving as you go!


