We are living in a super tech world that has made our lives convincingly simpler. The quality of products has reached to the distinction where the fineness is delivered consistently. The standards have been set at such extreme levels that you have to be at your best on all the times. Perhaps, all this direct and fierce competition amongst the companies benefits the customers and produces a wide variety for them to choose from. So, it is almost a win-win situation for the customers in today’s world.
This is a challenge for companies in every segment. With immense variety and choices in the market& extraordinary information sources to the customers, the churn rate is extremely high.
This leaves you with one option to present best first impression to give yourself a second chance. But it is not possible to produce excellent experiences to the distinctive nature of theusers.
So, the best possible way to sustain is monitoring the real-time performance of the product, then continuously learn and improve from the past failures and successes. Therefore, it becomes a necessity to constantly evaluate the current market scenarios. And then to gauge the customer experiences on a regular interval is recommended to be on the top of the game.
NPS and CSAT barometers help you to estimate and understand how your brand/product/service is performing in the market. The two covers very different aspects of customer experiences, hence they become exceedingly crucial. Both are the KPIs to measure the health and growth of your business.
To give you brief about the two, Net Promoter Score or NPS is the best parameter to suggest you about how loyal your customers are to your brand, and this also gives you an estimate on how are you doing on the customer retention as well. It is measured by asking a single question, “How likely will you recommend this product/service/brand to your friends, family or colleagues?”, on a rating scale of 0-10.
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CSAT, as the abbreviation to customer satisfaction, is a score that describes the extent to which your customers are satisfied with your product/services/brand. It covers most of the attributes of the products, parameters across your product to give you a detailed report of the performance in different sectors or areas.
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Both the scores reveal extremely valuable information but they individually don’t emerge the best picture of the feedback. So,to say that CSAT is enough to gauge the performance of your product, will be vague.
And obtaining the percentage of loyal customers neither helps you to define future strategies.
It has to be the blend of the two to optimise the insights for you. When the two scores are tracked together, the evaluation scale includes the satisfaction of the customers versus the loyalty and thence classifying your customers into broad four categories.
1. The customers who are not satisfied and don’t recommend your brand. The Churners. They are the prime target group of people that requires immediate attention and are needed to be addressed quickly. If this negative feedback is carefully escalated to treat these customers and resolve their queries to turn them on the positive, then you can see the dramatic growth of your business.
2. The customers who are not satisfied but do recommend your brand. They are the promoters of your brand, who have mixed experiences but they still trust your brand because of some previous impactful interaction. So, the action needed here is to identify the pain points in the recent transactions and providing them the required services.
3. The customers who are satisfied but they do not recommend your brand. This group of customers are the delicate group of people. They are required to be educated about the product and the brand. These customers have a lot of expectations and they don’t spare you if you’ll put even one of it down.
4. The customers who are satisfied and they do recommend your brand. The Brand Ambassadors. They share great experiences with your product and tells you about your strengths. The aim is to increase the percentage of customer in this category. This group of users stays long with the brand and helps to attract more customers as well.
The four types of these customers can only be identified based on two scores together. And all these categories hold very different actionable steps and approach.
Definitely you would be devoting much of your time in escalating the experiences of churners to improve both of your scores. And lesser time for the partly satisfied and disloyal customers. The measures will be completely different for the unsatisfied customer vs the ones who are not loyal to the brand.
But at the end, do not forget to support and thank your current promoters who lead your brand in the market and keeps you alive. Because every feedback must be reverted back.