Net Promoter Score (NPS) has long been used to judge consumer sentiment. It is based on a single survey question asking respondents to rate the likelihood that they would recommend a company, product, or a service to a friend or colleague, to rate a company between -100 and 100. Bain invented the Net Promoter Score and Net Promoter System to help companies earn customer loyalty and inspire employees. Most leaders want customers to be happy; the challenge is in knowing what customers are feeling, establishing accountability for the customer experience and deriving actionable insights.
Yes, we all know that customer promoters buy more, stay longer, refer friends and provide feedback and ideas. The problem with NPS is that it does not provide enough insight into the above challenge, nor how to fix it . This is why little progress has been made on loyalty and engagement through the use of NPS.
Its time is done.
You can’t improve what you don’t measure
As noted in the EY Consumer Banking Survey, a revision of NPS is due. Rather than measure how much customers liked them, an amorphous idea, Spotify introduced a fundamental shift to the business model by targeting engagement as the key measure of success. As customers get more value, they are more willing to spend more money, become stickier, as they enter and move through the funnel and validate product market fit. Spotify’s incentives are aligned so everyone benefits when Spotify sounds better. The longer people stay on the platform, the more likely they are to pay for premium, which is Spotify’s real money-maker. Measuring Net Engagement Score over Net promoter Score is more measurable, actionable and aligned to success.
Customer engagement needs to be designed as a weighted combination of:
- Time – how long the customer has been engaged
- Space – Traditional indicators, such as assets, number of products owned and the value of these products
- Quantity of interactions and inquiries across channels, including digital and mobile transactions completed, sessions abandoned, time on site, etc.
- Quality of the interactions – Level of satisfaction, number of complaints, likes and shares of bank content, and net promoter score or likelihood to recommend
- Motion – The recency of customer engagement
- Customer Success – How well do our customers do for the things they come to us for? Homes owned, budgets held, wealth achieved, habits stacked
NES available within Moroku Odyssey
These factors combine to create a data heavy index of customer engagement, Net Engagement Score, that place the customer on the Moroku Odyssey Player Map, determining where they are, where they’ve come from, where they’re headed so they can be supported. This is the real potential in hyper-personalisation that goes beyond tactical identification of savings and spending optimisation.
You can see some of this data being collected in Moroku Money, our white label mobile and internet banking solution. Net Engagement Score is available within Moroku Odyssey for Financial Institutions to track and improve customer engagement