Our Net Promoter Score of 52 percent shows that our ongoing commitment to customer service is building a loyal client base and developing long-term relationships.
The Net Promoter Score (NPS) has become a commonly used measure of how a company’s customers see it and, crucially, how strongly they would recommend its services to others. These “promoters” are the loyal bedrock on which companies rely for growth.
Developed by Bain & Company, the NPS offers a simple way for companies to measure customer loyalty. It asks customers “How likely are you to recommend [Company A] to a friend/ family/ business associate?]” in combination with a few other questions. Consolidated across the customer base, these questions provide companies with an NPS and the reasons behind their rating.
“The fact that a customer is prepared to recommend you is the ultimate proof that you are providing them with a service or product that they value,” says Cindy Bodenstein, Marketing Manager at ContinuitySA. “It’s thus no surprise that CEOs see customer experience as the most important lever of competitive advantage, because satisfied customers are those who will become promoters.”
The Walker B2B CEO Survey 2017 shows that 39 percent of CEOs see customer experience as their most effective method for creating a competitive advantage, outstripping talent (20 percent) and product (15 percent) quite significantly. The same showed that the strategic importance of the customer experience would actually increase by 2020.
“The NPS provides a snapshot of how loyal a company’s customer base is at a particular time but it’s much more powerful than that—it gives companies the opportunity to take actions that will improve customer experience and so promote growth,” says Andrew Clare, whose company, reLiance Advisory Services, has been researching ContinuitySA’s NPS for six consecutive years. “ContinuitySA’s steady improvement of its NPS, which this year stands at 52 percent, shows that it is one of that rare breed of companies that truly understands what its customers want, and is getting better at giving it to them.”
To put ContinuitySA’s achievement into perspective, it is worth considering that the average NPS of South African companies audited by reLiance is 33 percent—there is no comprehensive NPS benchmark for the B2B sector in South Africa.
Mr Clare says that the research shows that the key drivers behind ContinuitySA’s high NPS are excellent service and support, good relationships and responsiveness. In addition, its customers highlighted the value it delivered rather than the price it charged for its services.
“We have steadily improved our score over the past six years to get to 52 percent, but we are not satisfied—we aim to continue improving our understanding of what customers want as a basis for achieving our growth strategy,” Ms Bodenstein says in closing.