NPS + CSI Customer Loyalty and Satisfaction Indices are necessary to understand how much customers love or hate your company
Customer retention is key to the prosperity and growth of your business. Each new client attracted through promotion is an advertising budget, and the longer our client works with us and makes a profit, the higher the return on our investment. This is what their level of satisfaction is measured for.
Customer loyalty is:
- Customers who make shopping, with an understanding of the company’s employees, are always satisfied, and do not load technical support;
- Recommendations of loyal customers to their friends and family, and this is an excellent and free result for the company.
- More sales. Customers are waiting for updates and constantly make purchases from you without using the services of competitors.
Indexes are the standards of research. They allow you to see graphically a customer’s interaction with a brand over time, and compare the results to industry averages:
- NPS – reflecting the likelihood of recommending a customer to other people;
- CSI – customer satisfaction index.
The research reveals all sides of the activity and what criteria influence the attitude towards the company.
Smart City Enterprise recommends using these metrics together.
Customer Satisfaction Index – a measure of customer satisfaction that depends not only on the characteristics of the service/product but also on how much it has an impact on the customer.
- The index calculation is used to:
- Making a list of key product parameters that affect the customer;
- Considering each parameter and its index for the client separately;
- The result, which shows the final opinion of the product, and a measure of the importance of all characteristics;
- Analysis and comparison of satisfaction for all consumer groups.
To measure CSI it’s necessary to define key criteria of choice (parameters), which depend on the specifics of the product.
For example, it can be geolocation, service quality, cost of the product, loyalty programs, etc. Then a field study is conducted to determine the importance and satisfaction of each parameter.
Additionally, consumer development is conducted to gain a deeper understanding of brand attitudes.
Net Promoter Score (NPS),
or Consumer Loyalty Index, is a metric that shows how much users like or hate your company.
The NPS calculation is based on users’ responses on a scale with points to the question “Would you be willing to recommend your company to your friends?”
The NPS survey is conducted using CATI, CAPI, and CAWI surveys. Customers are divided into three categories – critics, neutrals, promoters, and a calculation is made.
If a negative or neutral index is received, it is necessary to make urgent corrections to change the level of satisfaction and to change the marketing strategy. The higher the NPS, the more customers trust your company.
Smart City Enterprise :
- Analysis of meaningful criteria for managing satisfaction with certain products or brands;
- Recommendations for increasing the NPS Index;
- CSI and NPS index measurement for in-depth study of customer attitudes;
- Proprietary database for industry comparisons.