Obviously one of the most important metrics for answering the question, “so how are we doing?” when it comes to providing compelling customer experiences is customer loyalty. In fact, measuring customer loyalty in general and against competitors is critical. In a world where alternatives are always a click away, and where customer acquisition costs are much higher than retaining existing ones, reducing churn and having permission to upsell is huge.
San Mateo, California-based Satmetrix, a leading global provider of cloud-based solutions for managing and improving customer experience, has released its annual Net Promoter Industry Benchmarks today. Actually a series of reports that look at 22 vertical sectors which include financial services, insurance, technology, online entertainment, retail stores, electronics, travel and hospitality, and telecommunications, the benchmarks rank more than 220 brands. The full reports offer an expanded and enhanced view of customer experience, featuring information about the key factors that drive consumer loyalty (loyalty drivers) specific to each industry sector.
A comprehensive view of brand stewardship
The Satmetrix Net Promoter Benchmarks are based on survey responses from more than 30,000 U.S. consumers nationwide who rated their experience with the primary brands they use. The Net Promoter Score, or NPS, for each brand is based on customers' likelihood to recommend the company's product or service in the sector being rated.
Here is what goes into the NPS. It is calculated as the percentage of customers who are promoters, rating the company 9 or 10 on a 0-10 point scale, minus the percentage who are detractors, rating 6 or lower. Consumers also rated each brand on various aspects of customer experience, including product or service features, customer service and overall value. Satmetrix analyzes this information to identify the key drivers of loyalty and recommendation.
"Our 2015 reports provide not only industry rankings according to companies' Net Promoter Scores, but also direct insight into which customer experiences drive loyalty and are most critical to a company's success," said Brendan Rocks, head of data science at Satmetrix. "The Net Promoter leaders in their respective industries have positioned themselves to outpace the competition in the areas of increased customer retention and acquisition -- and ultimately in terms of bottom line growth."
Highlights of this year’s benchmarks include:
Other highlights from the 2015 NPS Benchmark reports include:
As noted earlier, loyalty is more than just retaining a customer. In fact, with the growth of social media as an influencer it also is about obtaining permission to upsell and hopefully turning loyalists into brand advocates. The challenge is in knowing best practices, who the leaders are in your sector and understanding through self-evaluation where your organization is on the metrics used for loyalty. The goals are self-explanatory. In short they are to be recognized as a leader in providing customer experiences that increase loyalty and leverage that loyalty into long-lasting and more profitable customer relationships.