I still can't stop thinking about the aerialist who elegantly descended from the ceiling of the rotunda at our CX Summit in San Francisco on October 1st--what an incredible surprise! But the excitement and awe didn't end there.
The day was jam-packed with great speakers from LinkedIn, Uber, Waymo, Fox Networks Group, Samsung, Twitter, Facebook and more. One of the best things about CX Summit is that it’s a breeding ground for innovative ideas that push the CX industry forward. One idea that was born here last week really stuck out: We need to move away from relying on NPS scores as a way to measure customer engagement and loyalty. This metric is now considered by some as too old-school in building a modern CX strategy.
But wait--NPS has been used for the last 16 years and ⅔ of Fortune 500 companies use it to measure customer behavior and longevity, how can it be bumped? Thanks to the rise of technology, the CX industry is being disrupted from business as usual. While automation and machine learning are helping customer support teams work smarter and faster, the way success and customer behavior are measured is changing along with it.
Here’s why you should rethink the way you measure customer loyalty thanks to the brights minds at CX Summit.
NPS is Dying But Technology is Reviving Customer Outlook
NPS was an idea developed in 2003 by Fred Reichheld in a Harvard Business Review article, The One Number You Need to Grow. Reichheld believed that in order to scale a business, your customers had to be your strongest promoters. Through his research, he found that by surveying customers, you could predict their level of loyalty. Since then, NPS has become an integral part of every companies barometer for success.
But today, the power of big data and predictive analytics has changed the way we understand our customers and their longevity.
Big data, and the personalization it empowers can predict and indicate customer loyalty better than NPS surveys. Companies that use big data are also more likely to develop a better customer-centric strategy due to big data’s ability to provide proactive insights into customer behavior.
At CX Summit, some top CX leaders reported using data-driven predictive insights like spending forecasts to understand what customers will want in the future instead of using NPS. By leveraging technology, companies are learning how to proactively serve customer needs outside of just knowing their 5’s and 10’s. Best of all, this can happen without bugging customers for 5 minutes of their time to fill out a survey.
By shifting from reactive to proactive methods of obtaining and generating customer loyalty insights, this will shift the CX industry forward. Although surveys can provide a good glimpse of customer loyalty and satisfaction, big data technology provides a more informed picture of the future. When you can get ahead of customer needs, loyalty and engagement naturally increase and creates a more informed customer experience.
Status Quo No Mo’
In any company culture, it’s vital to expel the poisonous saying, “We’ve always done things that way” in order to remove antiquated methods that keep your company from moving the needle. This will work to generate more risk-taking amongst your colleagues and encourages the art of creative problem-solving.
Although the new spin on NPS took the cake when it came to rethinking traditional approaches, it wasn't the only innovative thought attendees walked away with. With 15 sessions to learn from at CX Summit, we gathered tips from each one to help you keep up with the pace of thought and change in the industry. Check out the infographic here and take notes for your 2020 CX strategy.
If you missed CX Summit SF, make sure to register for our CX Summit in New York, it’s going to be the most disruptive event of 2020.
If you're in the L.A. area on December 3, join us for our CX Briefing event and get ready to be a part of a group of CX legends!