Net Promoter Score or NPS has become the gold standard by which companies judge their interactions with customers. NPS was first designed by Fred Reichheld in 2003 and published in an article in the Harvard Business Review. It uses a single question, “How likely are you to recommend us to a friend or colleague” with a 1-10 scale. Most importantly, that number gives organizations a simple way to track customer loyalty and behavior.
While the NPS system has come under criticism, it remains true that customers who are willing to recommend your organization to others will grow your business. An NPS score increase of 7% typically tracks to a business growth of 1%. At the same time, initiatives to improve NPS only work if you actually understand what impacts NPS.
In most cases, a high NPS score tracks to high customer satisfaction, quality customer service, accessibility of information, and ease of service or product use. A surprisingly large number of these factors are impacted by internal company culture, or employee behavior. Why? Behavior impacts how people treat employees, how the product or service is created and delivered, and how the organization presents itself.
Encouraging Empathy (EQ)
Emotional intelligence, also known as emotional quota, is important in changing how people react and respond to each other. A highly emotionally intelligent person is able to recognize their own and the emotions of others, respond to those emotions, and keep those emotions in mind when making decisions that relate to other people. Encouraging EQ normally means testing for it and then implementing workshops and training to develop EQ where it’s lacking.
For most teams, customer service and customer assistance are the most important for this behavior. However, emotional intelligence improves productivity and collaboration across the organization, which will eventually improve performance and results, which also impact customer satisfaction and NPS.
How much does emotional intelligence impact NPS? Cowry Consulting worked with Aegon B.V. to improve NPS through customer contact center interactions. Cowry identified issues relating to lack of human depth, lack of advisor understanding of how and why customers make decisions.
Cowry implemented training to help assistants understand why people make decisions, rewrote scripts to make them more human, and redesigned how information was presented to ensure it appealed on an emotional level.
Aegon also shifted internal policy to assigning a lifetime contact to a customer, so they always connected with the same person when calling. The result was an over 36-point increase in NPS, with a 68.5% increase in sales conversions.
Build Teams that Work Together
Your teams ultimately impact everything the customer is able to get out of your organization. Building smoothly functional, productive, and collaborative teams is essential to providing a good experience and a good product.
Healthy teams communicate, work together, aren’t afraid of disagreement, let each other be heard, and consistently work to improve. Achieving this can involve a set of behavioral training, matching personalities, and changing policies to allow people to work in efficient and healthy ways. Let’s look at some examples:
Marketing and Sales
Are teams setting the right expectations during lead generation or are they simply generating as many leads as possible? Is marketing following up with sales? Is sales closing with information connected to development? Are customers pushed through the sales process as quickly as possible to raise sales numbers? Most of these problems relate to expectations set around maximum sales and maximum lead generation. They don’t result in happy customers. It’s often a result of:
- Poor performance and compensation systems (linked to quotas, not behavior and score)
- Lack of empathy or concern for the customer
Product and Design
Are people focused on how the product or service offers value? Or simply on putting out new features? Is UX a concern? Are problems checked for and removed before they reach the customer? Is quality assurance involved in every stage of the process>
- Assess how teams are connected to customers
- Assess how teams are put together and how communication, management, and interpersonal styles line up
Customer Service and Support
Does customer service put the customer first? Are they looking at how and why customers are making decisions? Are hold times long? How does customer service treat customers? Does support make customers happy or just fix issues and move on? What are responses when there’s no clear solution?
- Create policies that ensure teams have room to make empathetic decisions
- Train support professionals in communication styles, EQ, and recognizing different types of personalities
- Implement customer personas to help support professionals learn to recognize different communication styles and needs
You also want to look at how personalities link together in each team, ensure that teams actually collaborate, and that communication styles line up.
Building Internal Motivation and Buy-In
It’s difficult or even impossible to improve Net Promoter Score without encouraging employee buy-in. This broad term encapsulates motivating employees to engage with their work as well as with the customer, because, eventually, they mean the same thing. Teams have to fully engage with their work and believe in what they are doing. While many issues here are operational (management, work processes, lack of communication relating to short and long-term goals), many also relate to behavior.
Here, it’s important to understand employees. Using personality tests, EQ assessments, and behavioral frameworks can help you to map how individuals communicate, how leadership communicates, and how you can best fit that together or improve what you have through training and communication. Healthy teams engage with work, communicate better, and eventually produce better work – resulting in happier customers and a higher Net Promoter Score.
While there are many aspects to improving NPS, behavior and behavior management is important. The more you understand how people work and work together, the more you can ensure internal and external teams behave and collaborate in ways that add value for the customer.