Today's Net Promoter® News will, as always, feature the inspiring stories of prosperous companies around the world, who have mastered the NPS methodology and enjoy positive business results. SAP achieves an NPS score of 19 for 2016, Securus Technologies completes fourth year of using NPS and many more stories... Enjoy today's Net Promoter News roundup!
SAP Continues to Build Strong Customer Relationships
With over 345,500 customers around the world and a revenue figure of 22.06 billion EUR (2016), SAP SE has recently shared that the company is also enjoying stronger customer relationships. The German multinational software corporation announced it ended the year 2016 with an NPS score of 19. With an initial 2016 NPS target of 25, SAP conducted a customer survey to uncover the drivers behind their final score.
Customer responses told SAP they need to work on improving the quality of SAP's follow-up process to ensure timely resolution of customer issues. At CustomerGauge we have been preaching about the importance of doing closing the loop (following-up) right many times. From our experience and knowledge, companies who close the loop within 48hrs, can enjoy up to 12% increase in customer retention. Taking into account that acquiring a new customer can be 4 to 10 times more expensive than retaining customers, closing the loop the right way is extremely important.
In order to resolve the customers' issues, SAP provided more insights and guidelines into how customers can migrate to SAP's innovations without disrupting their business process. In doing so, the company equipped customers to do self-support and reduced the number of customer issues. SAP also shared that the company's objectives for 2017 will be centred around customer loyalty, employee engagement, growth and profitability. SAP's NPS target for 2017 is between 21 to 23, and for 2020 the company aims to achieve an NPS score between 35 to 40.
We love hearing about companies setting NPS targets, but just want to make sure they are using the SMART technique. Never heard of it? Don't worry, we are covering what it is below!
[caption id="attachment_20709" align="aligncenter" width="965"] SAP NPS = 19[/caption]
Securus Technologies Enjoys Excellent NPS News
Securus Technologies is not your average Information Technology and Services company. Securus Technologies provides leading edge civil and criminal justice technology solutions that improves public safety and modernizes the incarceration experience. When it comes to their customers, the company has a full cross-section of society - inmates, correction officials, law enforcement officials, judges, and friends and family of inmates.
From connecting family and friends to those incarcerated to connecting correctional facility personnel to critical information and inmates to technology, Securus has committed itself to providing the best customer experience. The company adopted NPS back in 2012 and since then has focused its business initiatives and resources into customer-centricity. Securus recently announced that has achieved an all-time high Net Promoter Score of 82 as of June 1, 2017. The company's NPS score has also shown an increase from 2016 when Securus Technologies' NPS was 78.
"Back in 2012 we started to use Net Promoter Scores and it has helped us to improve all of our customer-facing operations like technical support, call center operations, installation, repair, sales and all field operations," said Richard A. ("Rick") Smith, Chief Executive Officer of Securus Technologies...So our Net Promoter Score of 82 is very good/high and on par with world-class companies," stated Smith.
[caption id="attachment_20708" align="aligncenter" width="983"] Securus Technologies NPS = 83[/caption]
Securus Technologies' business model is highly focused on customer interactions. The company has over 700 Securus associates that interact directly with customers on daily basis, approximately 30 million voice-to-voice, face-to-face or e-mail/text messaging contacts per year. Therefore customer experience is very important for Securus Technologies. With so many customer touchpoints, it is great to see the company has a robust CX program and such a high NPS.
Setting SMART NPS targets
At CustomerGauge, we preach setting targets for metrics like NPS, response rate, close-loop KPIs, etc. As mentioned before, it is great to see that more and more companies across the globe set NPS targets. However, from our experience, in order to achieve sustainable and meaningful results, you need to make sure there targets follow the SMART technique.
Here's how you can use the SMART technique when setting up your NPS targets:
S = Specific
We often hear "Our NPS target for the year is 60!". That is great. However, you need to be more specific when you have such a target. Are you talking about a company-wide NPS target of 60? What about division by division? Should all divisions aim for 60, or will the target be higher or lower for certain departments?
Be as specific as possible so that when you go back to see if you met the target or not there will be no grey areas!
M = Measurable
Remember, NPS is measurable by nature. Hence this is one of the easiest SMART parameters when it comes to targets. Response rates, close-loop KPIs are all metrics you can and should set your NPS targets around. So make sure there are clearly measurable.
A = Achievable
When setting up your NPS target make sure you truly believe it can be reached, and that you have the resources to physically achieve it. You don’t want your team feeling like they were set up to fail. If you plan on closing the loop with detractors and firefighting, ensure you have a team with the bandwidth to perform those activities. Otherwise, you may have a hard time improving your NPS score.
R = Realistic
If you closed the year with an NPS of 14, it would be unrealistic to aim for 44 next year. Remember, NPS is a marathon, not a sprint. And this is how you need to treat your NPS targets. Even the most impressive NPS score programs typically don’t see more than a 10-15 point increase over the course of a year.
Improving your NPS score by 5 points over a year, or even less, especially if you send a large number of surveys, should still be considered a noteworthy achievement.
T = Time-Bound
Your NPS targets should also be time-bound. It's safe to say there is no point in setting a target that it's hard to track progress on. Do you plan on hitting your target in the next quarter? Within the next 6 months? By the end of the year? Make sure you know the specifics.
We hope you enjoyed today's Net Promoter News article. We talked a lot about setting NPS targets, closing the loop and improving the customer experience. Before you go, we want to make sure you advance your NPS knowledge. With that in mind, make sure you read our Closing the Loop eBook - it will prepare you for your NPS success!
If you want to learn more about closing the loop with your customers, check out the full eBook by clicking the button below.