What is Net Promoter Score? (Video)

Net Promoter® Score (NPS®) is one of the most popular CX metrics, so we are often asked to discuss it with clients. In addition to helping build successful NPS systems, we often provide a basic overview for executive teams and broader audiences of employees. That’s why created this video. It’s meant to explain what NPS is all about and why it may be a valuable approach for some companies. It’s a great video to share across your organization if you are using or considering using NPS. If you’d like more information, check out our NPS/VoC program resources.


CX Sparks: Guides For Stimulating Customer Experience DiscussionsThis video is a great introduction to a discussion with your team. That’s why we’ve created a CX Sparks guide that you can download and use to lead a stimulating discussion.


Video Script:

You may have heard of Net Promoter Score, which is often referred to as NPS. It’s a popular customer experience metric. Let’s examine what it is.

Walt Disney once said “Do what you do so well that they want to see it again and bring their friends.” He understood the incredible value of customers who actively recommend a company.

NPS is a measurement system that helps companies track and increase the likelihood of customers recommending an organization.

First of all, let’s describe the actual NPS measurement. It begins by asking customers a simple question:

“How likely are you to recommend this company to a friend or relative?”

Customers choose a response from an 11-point scale that goes from 0 “not at all likely” to 10 “extremely likely.”

Based on their response, customers are placed into one of three categories:

  • If they choose between 0 and 6, then they are DETRACTORS.
  • If they choose 7 or 8, then they are PASSIVES.
  • If they choose 9 or 10, then they are PROMOTERS.

NPS is calculated by taking the percentage of Promoters and subtracting the percentage of Detractors. You then multiply the percentage by 100 to get a whole number between -100 and +100.

Calculating Net Promoter Score (NPS)

Let’s say that 100 people answered the question, and 40 are Promoters, 50 are Passives, and 10 are Detractors. To calculate NPS, we would take the 40% for Promoters, subtract the 10% for Detractors, which leaves 30%. After multiplying it by 100, the NPS is 30.

While NPS provides a score, 30 in this case, the power of the system does not come from overly focusing on the number.

The goal of using NPS is to find and correct issues that create Detractors and to find and repeat activities that create Promoters. So it is important to understand what is causing customers to choose their responses.

That’s why most NPS programs include a follow-up question that asks the customer why they chose the score that they did. This question should be open-ended, not multiple choice, so customers can express their views in their own words.

What do you do with the data?

First of all, you want to “close the loop” with the customers who responded. This means contacting at least some of the customers who respond. Companies often try to reach out to all of the Detractors, to find out more about their problems and to see if their issues can be resolved. They also often contact Promoters, to thank them and hear more about what they like.

Next, you want to examine the opportunities to improve NPS by looking at what situations and activities cause Promoters and Detractors. This requires analyzing the responses from each group separately, and often involves incorporating other information about customers. You may also want to examine what drives Promoters and Detractors across different business areas or customer segments.

There’s no value in identifying the items that are driving NPS up or down unless a company does something with what they learn.

That’s why companies establish processes for reviewing, prioritizing, and taking action on the items that they uncover. In other words, the way to improve NPS is to have an ongoing approach for improving customer experience.

When used correctly, NPS helps companies follow Disney’s advice and do what they do so well that their customers want to see them again and bring their friends.

If being customer-centric matters to your organization, then why leave it to chance? Contact Temkin Group, the customer experience experts, by emailing info@temkingroup.com, or visit our website, at TemkinGroup.com.

Note: Net Promoter, Net Promoter Score, and NPS are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

Let Humanity Glow (Video)

To those who are already celebrating, and to those who are on the eve of it, Merry Christmas! And Happy Holidays to everyone!

To get you in the mood for the holidays and to prepare for the upcoming “Year of Humanity,” we created this short, hopefully inspiring musical video… Let Humanity Glow. Enjoy!

The bottom line: Let’s make humanity great again!

Five Ways That Organizations Crush Customer Empathy (Video)

Human beings are naturally empathetic, yet that tendency can get crushed when they go to work. Watch and read below…

Did you know that human beings are genetically wired for empathy? Our brains have something called mirror neurons that allow us to virtually feel what someone else is feeling. If you see your friend bump her head, then you are likely to react almost as if it had happened to you.

If people are naturally empathetic, then why aren’t most organizations, which are just collections of people, super empathetic towards their customers?

It turns out that organizations inhibit natural empathy in many ways. Here are five of those empathy inhibitors:

  • Inhibitor 1: Individual Context. People view the world through their own perspectives, so your natural empathy may not match the reaction of a customer who is quite different than you. For instance, a wealthy middle-aged marketing executive in New York City has a very different lens on the world than does an 18-year old from a poor, rural community. Also, employees know a lot more about their company’s products, processes, terminology, and organizational structure. So experiences that make sense to employees can often seem very complicated to customers.
  • Inhibitor 2: Human Bias. Companies often design experiences as if their customers were perfectly rational robots, but human beings aren’t like that. While people sometimes use rational thinking, which relies on logic and reason to make decisions, we more frequently use intuitive thinking, which relies on mental shortcuts and cognitive bias to make decisions. Rather than supporting customers’ unconscious decision rules like preferring to maintain the status quo, companies create experiences that slow down customers’ progress, or even derail them completely.
  • Inhibitor 3: Group Think. It turns out that people who are in close quarters, like a work team, tend to conform to a consistent point of view. Since companies often use different metrics for different groups, employees are encouraged to develop a very myopic view of their team’s responsibilities. As a result, the needs of employees’ teams take up so much head space that they drown out any thoughts about the needs of customers.
  • Inhibitor 4: Corporate Culture. Employees tend to conform to their surroundings. When leaders set expectations for a certain type of behavior, employees will try to meet those expectations – even if doing so hurts customers. When the Wells Fargo CEO set an unsustainable goal for the number of products sold to customers, employees across the organization tried to make it happen – even if it they knew it may not be good for customers.
  • Inhibitor 5: Emotional Illiteracy. Leaders in companies rarely discuss customer emotions. It’s not their fault; most people are uncomfortable discussing emotions in any setting. Within companies, emotions are often viewed as being too “soft” or “squishy” to focus on. This lack of dialogue about emotion keeps organizations from fully understanding and addressing the needs, wants, and desires of their customers.

While these inhibitors can drain the customer empathy out of an organization, they don’t need to. Now that you know what they are you can look for them and suppress their impact.

The bottom line: You need to actively unleash employees’ natural empathy.


CX Sparks: Guides For Stimulating Customer Experience DiscussionsThis video is a great introduction to a discussion with your team. That’s why we’ve created a CX Sparks guide that you can download and use to lead a stimulating discussion.

 

 

 

 

 

CX Competency: Customer Connectedness (Video)

Temkin Group has found that the only path to sustainable customer experience differentiation is to build a customer-centric culture. How? By mastering Four Customer Experience Core Competencies.

This video provides an overview of one of those competencies, Customer Connectedness, where the goal is to infuse customer insight across the organization.

Here Are Four Strategies For Customer Connectedness:

Customer Connectedness


CX Sparks: Guides For Stimulating Customer Experience DiscussionsThis video is a great introduction to a discussion with your team. That’s why we’ve created a CX Sparks guide that you can download and use to lead a stimulating discussion.

CX Competency: Employee Engagement (Video)

Temkin Group has found that the only path to sustainable customer experience differentiation is to build a customer-centric culture. How? By mastering Four Customer Experience Core Competencies.

This video provides an overview of one of those competencies, Employee Engagement, where the goal is to align employees with the goals of the organization.

Here Are Five I’s of Employee Engagement:

employee engagement


CX Sparks: Guides For Stimulating Customer Experience DiscussionsThis video is a great introduction to a discussion with your team. That’s why we’ve created a CX Sparks guide that you can download and use to lead a stimulating discussion.

CX Competency: Compelling Brand Values (Video)

Temkin Group has found that the only path to sustainable customer experience differentiation is to build a customer-centric culture. How? By mastering Four Customer Experience Core Competencies.

This video provides an overview of one of those competencies, Compelling Brand Values, where the goal is to deliver on your brand promises to customers.

Here Are Three Steps to Compelling Brand Values:

compelling brand values


CX Sparks: Guides For Stimulating Customer Experience DiscussionsThis video is a great introduction to a discussion with your team. That’s why we’ve created a CX Sparks guide that you can download and use to lead a stimulating discussion.

CX Competency: Purposeful Leadership (Video)

Temkin Group has found that the only path to sustainable customer experience differentiation is to build a customer-centric culture. How? By mastering Four Customer Experience Core Competencies.

This video provides an overview of one of those competencies, Purposeful Leadership, where the goal is for leaders to act consistently with a clear, well-articulated set of values.

Here are the Five P’s of Purposeful Leaders:purposeful leadership


CX Sparks: Guides For Stimulating Customer Experience DiscussionsThis video is a great introduction to a discussion with your team. That’s why we’ve created a CX Sparks guide that you can download and use to lead a stimulating discussion.

Start Talking About Emotions (Video)

To help celebrate “The Year of Emotion” on CX Day (and beyond), Temkin Group created this fun, short video: Start Talking About Emotion.

The bottom line: Add the Five A’s of an Emotional Response to your vocabulary


CX Sparks: Guides For Stimulating Customer Experience DiscussionsThis video is a great introduction to a discussion with your team. That’s why we’ve created a CX Sparks guide that you can download and use to lead a stimulating discussion.

Quick Take: The Power of Customer Journey Thinking (Video)

In a recent Customer Experience Professionals Association (CXPA.org) CustomerSpark event in Dallas, I spoke about the importance of focusing on emotion. Given that we’ve called 2016 “The Year of Emotion,” this is a popular topic for Temkin Group.

Here’s a short snippet from my speech (one of several quick take videos from the event), which focuses on the power of Customer Journey Thinking™:

 

Want more information on Customer Journey Thinking? Check out the post, Five Questions That Drive Customer Journey Thinking.

And don’t forget to join the Intensify Emotion Movement.
IntensifyEmotionLogo

Quick Take: Start Talking About Emotion (Video)

In a recent Customer Experience Professionals Association (CXPA.org) CustomerSpark event in Dallas, I spoke about the importance of focusing on emotion. Give that we’ve called 2016 “The Year of Emotion,” this is a popular topic for Temkin Group.

Here’s a short snippet from my speech (one of several quick take videos from the event) where I discuss why we need to Start Talking About Emotion:

 

For more information on the Five A’s of an emotional response, check out this post: Customer Responses, From Angry To Adoring.

And, I urge you to join the Intensify Emotion Movement.

IntensifyEmotionLogo

Quick Take: We Need More Qualitative Research (Video)

In a recent Customer Experience Professionals Association (CXPA.org) CustomerSpark event in Dallas, I spoke about the importance of focusing on emotion. Give that we’ve called 2016 “The Year of Emotion,” this is a popular topic for Temkin Group.

Here’s a short snippet from my speech (one of several quick take videos from the event), where I discuss that We Need More Qualitative Research:

 

I urge you to join the Intensify Emotion Movement.

IntensifyEmotionLogo

Quick Take: Customer Experience: Success, Effort, and Emotion (Video)

In a recent Customer Experience Professionals Association (CXPA.org) CustomerSpark event in Dallas, I spoke about the importance of focusing on emotion. Give that we’ve called 2016 “The Year of Emotion,” this is a popular topic for Temkin Group.

Here’s a short snippet from my speech (one of several quick take videos from the event) where I discuss the three elements of customer experience, Success, Effort, and Emotion:


If you enjoyed this video, you may want to check out another one: What is Customer Experience?

I urge you to join the Intensify Emotion Movement.

IntensifyEmotionLogo

Quick Take: Make More Human Emotional Connections (Video)

In a recent Customer Experience Professionals Association (CXPA.org) CustomerSpark event in Dallas, I spoke about the importance of focusing on emotion. Give that we’ve called 2016 “The Year of Emotion,” this is a popular topic for Temkin Group.

Here’s a short snippet from my speech (one of several quick take videos from the event), where I discuss how we need to Make More Human Emotional Connections:

I urge you to join the Intensify Emotion Movement.

IntensifyEmotionLogo

Customer-Centric Culture Change (Video)

Our research and work with clients show that customer experience is a reflection of an organization’s culture. Any company that wants to build sustainable customer experience must build a customer-centric culture. How? By mastering Employee-Engaging Transformation.

Want to know more? Watch this short video:

The bottom line: CX success almost always requires culture change


CX Sparks: Guides For Stimulating Customer Experience DiscussionsThis video is a great introduction to a discussion with your team. That’s why we’ve created a CX Sparks guide that you can download and use to lead a stimulating discussion.