Closing the loop boosts NPS by 13 points for largest contact lens store
Until recently, the world’s largest contact lens store 1-800-CONTACTS, was running a voice of the customer program without a process for closing the loop. But that has all changed. By starting a process of closing the loop in late 2014, the company has already seen their NPS jump by 13 points.
In an effort to update their customer experience strategy last year, the company came across a startling problem. While they had data from 8 million U.S. customers, managers weren’t responding to customers or sharing with them lessons that had been learnt.
“We saw this huge opportunity to track and directly respond to people's input," says Neil Wieloch, director of marketing strategy and insights. "If people are willing to fill out a survey and identify things they want to have improved, we should be willing to address that," Wieloch adds.
1-800-CONTACTS decided then that their VoC program needed to go beyond customer expectations and for this reason they added the following open-ended question to their customer experience survey: "Is there anything we can do to make your experience better?"
And while some customers require problem resolution, closing the loop is also about showing your customers you appreciate them and their feedback. To develop a stronger emotional connection 1-800-CONTACTS also took the step of sending out roughly 10,000 cards to loyal customers thanking them for their patronage.
The power of closing the loop has helped 1-800-CONTACTS raise its top-line revenues. The simple thank you card program has seen an average increase of 3.8 percent in product reorders, which roughly works out to an additional $135,000 in revenue per month.
Find out more about why closing the loop was so rewarding for 1-800-CONTACTS.
Real estate group improves sales by $60 million with targeted upsell campaign
Australian real estate group Hockingstuart, raised its sales for the month of May by $60 million by simply redirecting some of their efforts towards existing clientele, rather than new sales.
Hockingstuart has become better at tapping into its database in order to discover customers that are ready to move from simply being tenants to vendors and landlords.
[caption id="attachment_15359" align="alignright" width="364"] Upselling in real estate can be tricky, but if it works the rewards can be big.[/caption]
And one way they helped realize this achievement is by using the Net Promoter Score, which for Hockingstuart now stands over 50.
However, tapping into this upsell capacity can be a difficult and unpredictable endeavor in the real estate industry, as new sales can take anywhere from months to years.
This has meant that Hockingstuart had to significantly improve the quality and quantity of its database marketing.
“Tenants have always been known as being a reactive conversation,” said managing director Nigel O’Neil. “We're trying to get on the front foot and make sure that tenants are receiving communication around treating them as future investors, rather than just being tenants.”
Keeping customers loyal isn’t just about repeat revenue; it provides a great opportunity to discover customers that are open to spending more.
Read more about Hockingstuart’s story.
Why social media engagement is a crude measure of brand advocacy
In a recent 11-country online survey of more than 5,000 social media users, it has been found that positive social media messages do not necessarily translate into brand promoters.
The study found that while 58% of respondents were “sharers,” only 19% were true brand promoters.
[caption id="attachment_15363" align="alignright" width="325"] Sharing an experience with a brand is not the same as being an active promoter.[/caption]
Social sharers are those who not only follow a brand on social media but actively share the experiences they have with brands. However, these sharers differ from those who, in the survey, identified themselves as being extremely likely to recommend brands and products to friends.
The research found that brand promoters are far more influential than sharers, with notable differences of how promoters interact via social media and with brands.
Promoters are more active followers, with 66% following brands on a regular basis, compared with 52% of sharers. While the reason they interact with brands is that 46% believe a brand’s reputation is important, while just 36% of sharers think the same.
Within networks, 59% of promoters see their networks regularly mention brands and products, in comparison to just 47% for sharers. And promoters are also more open to suggestion, with 35% stating they would purchase a product if it was mentioned by a friend, against just 24% for sharers.
So what does this all mean for brands? While social media junkies may appear to be your strongest advocates, the fact is that social media activity is not an indicator of advocacy. But by applying the Net Promoter System to social media, brands can better understand who of their customers are actual promoters and who are simply social media addicts.
What can social media mean for advocacy, read more right here.
NPS in brief
Extol International, a leading provider of end-to-end business integration software and services has earned an NPS of 65.3.
Masergy Communications Inc., a global leader in managed networking and cloud services, has achieved a score of 66.
Web hosting firm UKFast has come out with a more than satisfactory 75.
File sharing giant Dropbox isn’t so loved by all, with a score of 34.
While U.S. component manufacturer, Lampin has a score of 85.7.