Make it a Better Experience (The Ultimate Experience)

There has been a growing disenchantment with Net Promoter Score (NPS) due to its lack of actionable insights, over-simplification, limited diagnostic capability, inconsistent measurement, misalignment with business goals, and overemphasis on promoters (or detractors).

More and more businesses are evaluating ways in which to Move Beyond NPS leveraging AI and while not necessarily seeking to replace it altogether, definitely hoping to identify a set of more meaningful set of measures that provide deeper insights into the customer's actual experience. And that will be the focus of this post!

The Ultimate Question

Net Promoter Score (NPS) was created by Fred Reichheld , a partner at Bain & Company, in 2003. He introduced it in his Harvard Business Review article, "The One Number You Need to Grow", with the goal of providing a simple yet effective metric for measuring customer loyalty and predicting business growth. He later wrote about it in his book The Ultimate Questions: Driving Good Profits and True Growth.

The Ultimate Question: How likely are you to recommend our company to a friend or colleague?

It was viewed to be a leading indicator by easily capturing and representing the percentage of individuals who contribute to growth through their purchasing and referral behaviors (promoters), impede growth due to their negative referrals and high cost to serve (detractors), and represent unrealized opportunity (passives).

It was considered to be the Gold Metric and became the foundation upon which organizations began to build Voice of the Customer programs (sending out frequent surveys to customers).?

More importantly, it helped us break away from the chains of CSAT highlighting the difference between customer satisfaction and customer loyalty. Simply put, satisfied customers still defect.

The Challenge

The challenge then, and still to this day, has been the ability of organizations to build an operating model around it, embedding it into the organization as a philosophy, continually measuring it (accurately), avoiding gamification of the metric, and then taking action on it effectively.

(1) The first problem organizations encounter is that NPS as a number on its own has limited meaning:

? When it trends upwards, everyone celebrates, pointing to why or what they think the reasons are, but, not really being confident.

? When it trends downwards, panic sets in, and everyone starts hammering away at potential issues or reasons hoping their individual team efforts will pay off in the end and reverse the downward trend.

(2) Second, it is often difficult if not impossible to action on it given the difficulty in finding meaningful correlations (positive or negative) to the hundreds of different interactions and touchpoints with the brand.

(3) Third, it often becomes a target for performance management and bonuses, taking the focus away from the customer as individuals and departments start to ‘game the system’ and ‘corrupt it’ making it meaningless as a true measure of customer experience.

This last challenge is perhaps the most significant in that it places a focus on the number itself (the measurement) and takes the focus away from the customer!

The Ultimate Experience

What if instead of focusing on asking "The Ultimate Question", we focused on delivering "The Ultimate Experience"? An experience focused on sixteen (16) scientifically backed rational and emotional human desires that drive brand connection and customer loyalty.

This would help us to place less focus on our Net Promoter Score, the number itself, and place greater focus on the customer and the degree to which we deliver on their most important desires (rational and emotional).

To do this we need the combination of Behavioral Science and AI. Why both? Behavioral science because it informs us on how people think about experiences, make decisions, and ultimately assess their brand associations and experiences. And AI because it helps us efficiently gather these human insights at a much faster pace.

Together, leveraging the Apex platform, they help us more effectively measure and associate the impacts of individual interactions and relationships over time to the most important factors impacting brand connection and customer loyalty.

A more Human-focused Approach

As part of this post, we'll look at six of the sixteen rational and emotional desires that Apex measures to examine different scenarios where having a more detailed understanding of the customer experience in relationship to more human-centered factors (authentic, empathic, joyful, dependable, distinct, responsive) might better inform specific actions for you to take as an organization.

It's important to note that not all of the sixteen Desires matter in every customer relationship with a company as they will often differ based upon your business strategy, business model, brand positioning, and targeted customer segments.

Once you've identified the most important human-centered factors (rational and emotional) though this can go along way towards helping your organization prioritize and focus on the most important moments in the customer journey as well as the specific actions to take to improve brand connection and customer loyalty.

(1) AUTHENTIC

Your brand must appear genuine and real to be viewed as authentic. A study found that perceptions of brand authenticity can increase the perceived quality of the brand’s products, even if the products are negatively regarded.

Positive Scenario to think about:

• Observation: A company's marketing campaign is well-received for its genuine and transparent messaging.
• Measurement: High Authentic scores indicate customers perceive the brand as honest and trustworthy.
• Action: The company continues to prioritize transparency in all communications.
• Outcome: NPS increases as customers appreciate the brand’s authenticity, leading to stronger loyalty and advocacy.

A few real-life examples (positive):

• Patagonia 's "Don't Buy This Jacket" campaign in 2011 showcased the company's genuine commitment to sustainability. By encouraging customers to buy less and think more about environmental impact, Patagonia built trust and loyalty, resulting in a significant increase in its NPS. Customers appreciated the brand's transparent and authentic approach to marketing, which aligned with their values.

Patagonia's Don’t Buy This Jacket campaign is one of the best examples we can find of deepening one’s Systemic Authenticity and its success in the marketplace makes it a true innovation. - Harvard Business Review

• The Body Shop 's ethical sourcing practices and commitment to cruelty-free products have consistently demonstrated the company's authentic dedication to social and environmental responsibility. By transparently communicating their efforts to source ingredients ethically and oppose animal testing, The Body Shop has built a strong reputation for authenticity, leading to an increase in NPS as customers trust and support the brand's values.

We exist to fight for a fairer, more beautiful world. This is our purpose, and it drives everything we do. We believe in the beauty of the planet and the good in people, but our world needs work. - Bodyshop Purpose Statement

Negative Scenario to reflect on:

• Observation: A company's marketing campaign is criticized for being misleading and deceptive.
• Measurement: Low Authentic scores reveal customers feel betrayed by false claims.
• Action: The company faces backlash and must address the misleading elements.
• Outcome: NPS drops as trust erodes, causing customer dissatisfaction and negative word-of-mouth.

A few real-life examples (negative):

• In 2015, Volkswagon's emissions scandal revealed that the company had installed software to cheat emissions tests, leading to a severe drop in NPS. Customers felt betrayed by the company's deceitful practices, which significantly undermined trust and damaged Volkswagen's reputation.
• Wellsfargo's fake account scandal in 2016, where employees created millions of unauthorized accounts, led to a sharp decline in NPS. Customers felt deeply deceived by the bank's unethical practices, resulting in a loss of trust and a damaged reputation.

(2) EMPATHETIC

To be viewed as empathetic, your brand must understand, share in and respond to your customers’ feelings. When employees behave empathetically, brands experience increased customer satisfaction and loyalty, resulting in more significant positive word-of-mouth and repurchase intentions.

Positive Scenario to imagine:

• Observation: Customer support interactions are praised for being understanding and compassionate.
• Measurement: High Empathetic scores reflect that customers feel their emotions and concerns are valued.
• Action: The company reinforces training for customer service representatives to maintain high empathy.
• Outcome: NPS increases as customers feel supported and valued, enhancing their loyalty to the brand.

A few real-life examples (positive):

• Zappos Family of Companies customer service is renowned for its empathy, highlighted by instances such as sending flowers to a grieving customer. This high level of empathetic interaction has consistently led to strong emotional connections with customers, boosting Zappos' NPS and fostering long-term loyalty.

“Customer service shouldn’t be a department, it should be the entire company.” - Tony Hsieh

"We're so serious about empathy and connection that every person in the company goes through customer service training." - Tony Hsieh

• Southwest Airlines demonstrated exceptional empathy when they responded compassionately to helping a passenger figure out how to somehow travel on short notice to be at her cousin and best friend's bedside to hold her hand until she passed. This personalized and caring approach significantly increased their NPS, as customers appreciated the airline's empathy and personal touch.

"I tell my employees that we're in the service business, and it's incidental that we fly airplanes." - Herb Kelleher, President of Southwest

"Your people come first, and if you treat them right, they'll treat the customers right." - Herb Kelleher, President of Southwest

Negative Scenario to avoid:

• Observation: Customers report that support interactions are impersonal and lack empathy.
• Measurement: Low Empathetic scores indicate dissatisfaction with the emotional response from support staff.
• Action: The company must retrain its customer service team to improve empathy and active listening skills.
• Outcome: NPS drops as customers feel neglected, leading to decreased satisfaction and retention.

A few real-life examples (negative):

• In 2017, United Airlines faced a severe drop in NPS after forcibly removing a passenger from an overbooked flight. The incident, seen as highly insensitive and lacking empathy, led to widespread public backlash and a damaged reputation.
• Comcast's customer service reputation took a hit in 2014 with a widely publicized call where a representative repeatedly refused to cancel a customer's service. The aggressive and unhelpful interaction highlighted a lack of empathy, resulting in a decline in NPS and customer dissatisfaction.

3. JOYFUL

To be viewed as joyful, a brand must evoke an internal sense of peace, gratitude and delight in its customers. This joyful experience is linked to customer retention, repeated purchase behavior and positive attitudes toward the brand’s products or services.

Positive Scenario to strive for:

• Observation: Customers find joy in using the company’s products, reporting a delightful and engaging experience.
• Measurement: High Joyful scores show that the product brings happiness and satisfaction.
• Action: The company continues to innovate and enhance the joyful aspects of the product experience.
• Outcome: NPS increases as customers enjoy using the product, leading to repeat purchases and positive recommendations.

A few real-life examples (positive):

• Apples launch of any new product communicates a seamless and delightful user experience bringing joy to its customers. Their continuous innovation leads to high NPS scores, as users find immense satisfaction is using their products, driving strong customer loyalty.

• Walt Disney's theme parks focus on creating magical and joyful experiences for visitors. This commitment to delight and happiness has consistently resulted in high NPS, as guests leave with positive memories and a strong emotional connection to the brand.

“Do what you do so well that they will want to see it again and bring their friends." - Walt Disney

"The magic is as wide as a smile and as narrow as a wink, loud as laughter and quiet as a tear, tall as a tale and deep as emotion. So strong, it can lift the spirit. So gentle, it can touch the heart. It is the magic that begins the happily ever after." - Walt Disney

Negative Scenario to reflect on:

• Observation: While customers enjoy the product, they encounter rude and unhelpful customer service during complaints.
• Measurement: High Joyful scores but low Respectful scores during complaint handling.
• Action: The company needs to address the respectfulness of their complaint resolution process.
• Outcome: NPS drops as customers are frustrated by disrespectful interactions, overshadowing the joy of product use.

A few real-life examples (negative):

In 2017, EA faced significant backlash and a drop in NPS after introducing microtransactions in "Star Wars Battlefront II." The "pay-to-win" mechanics marred the gaming experience, leading to player frustration and a public relations crisis.

Uber's reputation suffered in 2017 due to reports of a toxic workplace culture. The negative public perception and internal dissatisfaction led to a decline in NPS, as both employees and customers were affected by the company's issues.

(4) DEPENDABLE

To be viewed as dependable, your brand must prove to customers that you can be counted on, to be honest, value their well-being and support the causes that are important to them. One study found that dependability was significantly linked to customer satisfaction and loyalty.

Positive Scenario to seek:

• Observation: The company is known for its reliable and consistent product delivery and performance.
• Measurement: High Dependable scores indicate customers trust the brand’s reliability.
• Action: The company maintains its focus on reliability and consistency in all operations.
• Outcome: NPS increases as customers rely on the brand for dependable service, enhancing their loyalty and satisfaction.

A few real-life examples (positive):

亚马逊 's consistent and reliable delivery service has earned high NPS, as customers trust Amazon to deliver their orders on time. This reliability has fostered strong customer satisfaction and repeat business.

“A brand for a company is like a reputation for a person. You earn reputation by trying to do hard things well.” - Jeff Bezos

“The best customer service is if the customer doesn’t need to call you, doesn’t need to talk to you. It just works.” - Jeff Bezos

Toyota Motor Corporation 's reputation for producing reliable and long-lasting vehicles has led to high NPS. Customers value the consistent performance and dependability of Toyota cars, which has translated into loyalty and positive word-of-mouth.

"Quality is not just meeting customer expectations; it's exceeding them." - The Toyota Way

"Toyota believes that any problem can be solved if you have the right people, the right processes, and the right mindset." - The Toyota Way

Negative Scenario to avoid:

• Observation: Customers experience frequent delays and inconsistencies in product delivery.
• Measurement: Low Dependable scores reflect frustration with the brand’s reliability.
• Action: The company must improve logistics and quality control to restore reliability.
• Outcome: NPS drops as customers lose trust in the brand’s dependability, leading to dissatisfaction and attrition.

A few real-life examples (negative):

FedEx faced a drop in NPS during the 2013 holiday season when severed weather and logistical challenges led to significant delivery delays. Customers were frustrated by the failure to deliver packages on time, which eroded trust in the company's reliability.

Samsung Electronic's faced a decline in NPS after the 2016 recall of the Galaxy Note 7 due to battery fires. The safety and reliability concerns severely impacted customer trust and the company's reputation.

(5) DISTINCT

Humans have a natural desire to feel special and distinct from “the masses”. Therefore, your brand can succeed by offering products and service that enhance the customers’ sense of self and social image. One study found that the uniqueness of a product contributes to how useful customers perceive the product to be.

Positive Scenario to create:

• Observation: Customers value the unique features and innovative aspects of the company’s products.
• Measurement: High Distinct scores indicate customers see the brand as unique and superior.
• Action: The company continues to innovate and highlight the distinct qualities of its products.
• Outcome: NPS increases as customers appreciate the brand’s uniqueness, driving strong loyalty and referrals.

A few real-life examples (positive):

Tesla 's introduction of electric vehicles with unique features like Autopilot has led to high NPS. Customers value the cutting-edge technology and innovative design, which has fostered a strong sense of pride and loyalty among Tesla owners.

“Starting and growing a business is as much about the innovation, drive, and determination of the people behind it as the product they sell.” - Elon Musk

Dyson 's innovative home appliances, such as their unique vacuum cleaners and bladeless fans, have earned high NPS. Customers appreciate the distinctive design and advanced technology, which set Dyson apart from competitors.

"It's not enough just to have a good idea; you need to bring it to life with relentless determination." - James Dyson, renowned innovator

Negative Scenario to avoid:

• Observation: New product releases are perceived as generic and lacking innovation.
• Measurement: Low Distinct scores show that customers do not see any unique value.
• Action: The company needs to invest in R&D to differentiate its products.
• Outcome: NPS drops as customers are disappointed by the lack of distinctiveness, reducing their enthusiasm and loyalty.

A few real-life examples (negative):

Gap's logo redesign in 2010 was poorly received, leading to a drop in NPS. Customers found the new logo generic and unappealing, prompting the company to revert to the original design after facing backlash and losing loyal customers.

Coca-Cola's introduction of New Coke in 1985, which replaced the original formula, led to a decline in NPS. Customers disliked the new taste and missed the original, resulting in a strong backlash that forced Coca-Cola to return to the original formula.

(6) RESPONSIVE

To be viewed as responsive, your brand must equip your employees to provide customer service that is warm, easily accessible, and efficient. Research shows that 86% of customers are willing to pay more for better customer service.

Positive Scenario to achieve:

• Observation: Customers praise the company for its prompt and efficient customer service.
• Measurement: High Responsive scores reflect satisfaction with timely and effective support.
• Action: The company ensures customer service remains a priority, with continuous improvements.
• Outcome: NPS increases as customers appreciate the responsiveness, leading to higher satisfaction and loyalty.

A few real-life examples (positive):

The 丽思卡尔顿 's proactive and personalized customer service has consistently earned high NPS. Guests experience timely and efficient service, which enhances their satisfaction and loyalty to the brand.

"Don't hire employees to work for you, hire them to join you, to be part of a vision, of a dream." - Horst Schulze founder of the Ritz-Carlton

"Not at all. Caring for the customer doesn't cost anything. To understand the customer, to pay attention to your market segment. To align your employees to serving that segment." - Horst Schulze founder of the Ritz-Carlton

Nordstrom 's legendary customer service, including flexible return policies, has resulted in high NPS. Customers appreciate the prompt and accommodating service, which fosters strong loyalty and positive reviews.

A vision is the heart is the head of your business, mission is heart of your business, and values are the soul of your business. And you need all those things to be a truly customer-centric company." - Robert Spector, The Nordstrom Way

Negative Scenario to dread:

• Observation: Customers experience long wait times and delayed responses from customer service.
• Measurement: Low Responsive scores indicate frustration with the speed and efficiency of support.
• Action: The company must enhance its customer service processes to reduce wait times and improve response rates.
• Outcome: NPS drops as customers are dissatisfied with slow and unresponsive service, leading to decreased loyalty and satisfaction.

A few real-life examples (negative):

Time Warner Cable's ongoing customer service issues, including long wait times and unhelpful support, have kept its NPS low. Customers experience frustration with slow and inefficient service, leading to widespread dissatisfaction.

British Airways IT failure in 2017, which caused flight cancellations and delays, resulted in a drop in NPS. The airline struggled to manage the crisis effectively, leaving customers feeling inadequately supported and dissatisfied.

In Summary

The above examples illustrate how aligning or failing to align with key human desires (rational and emotional) can significantly impact NPS. Once again here are the six scenarios we highlighted (out of the sixteen potential desires):

1. Authentic: Genuine brands are perceived as higher quality, even if their products have been negatively regarded. Therefore, transparent marketing increases NPS; deceptive practices decrease it.
2. Empathetic: Understanding and sharing customers' feelings increases satisfaction and loyalty, encouraging positive word-of-mouth. Therefore, empathetic customer support boosts NPS; lack of empathy reduces it.
3. Joyful: Brands that evoke joy and delight foster customer retention and positive attitudes, enhancing repeated purchase behavior. Therefore, joyful product experiences increase NPS; disrespectful complaint handling decreases it.
4. Dependable: Proving reliability and honesty builds customer satisfaction and loyalty. Therefore, reliable service increases NPS; inconsistent delivery reduces it.
5. Distinct: Offering unique products enhances customers' sense of self and social image, increasing perceived usefulness. Therefore, unique products increase NPS; generic offerings reduce it.
6. Responsive: Providing warm, accessible, and efficient customer service can justify higher prices for better experiences. Therefore, prompt service increases NPS; delayed responses reduce it.

By understanding and addressing these desires, companies can strategically improve their customer satisfaction and NPS over time. Building better brand connections and customer loyalty!