What is Customer Experience (CX)?
C ustomer Experience (C X ) stands for managing the user experience by having companies introduce the practice of monitoring and responding to customer attitudes and opinions to meet their expectations and thus increase their loyalty .
… And greater customer loyalty means greater retention , more opportunities for up-selling and cross-selling , as well as more recommendations . All of this translates into higher revenue for your company.
What is Net Promoter Score®?
The Net Promoter Score (NPS) is the basic metric used in the Customer experience.
NPS measures customer loyalty of a particular company. Measuring user experience is based on one simple question:
How likely are you to recommend Company X to friends or colleagues ?
Based on the answers, users are classified into one of 3 groups:
- PROMOTERS (promoters) – loyal and enthusiastic customers
- Passives (passive) – satisfied with the service but not enough to be promoters
- Detractors (gossip) – are not satisfied, will come again to buy and may affect other customers not to buy from you or to switch to the competition
® N et Promoter Score is a registered trademark of Fred Reichheld, Satmetrix, and Bain & Co
How did the Net Promoter Score come about?
The Net Promoter Score (NPS) was designed by consultants from Bain & Co.in early 2000, and Fred Reicheld is especially credited for noticing the growing limitations of the traditional approach to user surveys. The results became increasingly modest and unreliable with a complex, expensive, time-consuming and laborious process. In addition, the response of the respondents was getting lower and lower. A team of consultants came together to solve the growing problem by shortening the survey to one key issue that would yield a similar amount of conclusions as long surveys, and the result of which could predict the growth of company revenues. A paper published in the 2003 Harvard Business Review, “One Number Needed to Increase,” summarizes the findings and reveals a hitherto unknown research question: “How likely are you to recommend our company / product / service to a friend or colleague?
Benefits of the Customer Experience program
Other Customer Experience (CX) metrics
The NPS score is a number that allows you to track customer loyalty, but the NPS number alone doesn’t mean much . That is why it is crucial to understand what most affects your NPS score. In addition to how much the user is willing to recommend your company, collecting additional data with CX metrics:
- CSAT (Customer Satisfaction ) – customer satisfaction
- CES (Customer Effort Score) – ease of resolving customer requirements
allows these metrics to be linked to the NPS score.
By analyzing the relationship of these metrics, it can be revealed what are the biggest drivers of your NPS , ie the loyalty of your users or customers.
Rounding out the Customer Experience process
Crown CX whole program is rounding process ( closing the loop ) with customers.
- PROMOTERS – Thank you Research shows that Promoters can make up 80% -90% of all referrals! Make sure they know you value their loyalty.
- PASSIVE – Let them be on your side Passives may seem satisfied, but they can easily leave your company and go to the competition. Encourage them to become more attached to you.
- Gossipers – Turn them into Promoters Gossipers are actively dissatisfied users who can “skip” you in the future and persuade others to do so. Fortunately, they too can change their minds. Understand their dissatisfaction and solve their problem.