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Which is more important? Net Promoter® Score (NPS) or Customer Satisfaction Score (CSAT)

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"Which is more important? Net Promoter® Score (NPS) or Customer Satisfaction Score (CSAT)"

Wrong question! The correct question is: Which drivers of NPS and CSAT are more important than others?

So! let us get right down to it.

NPS was first discussed by Fred Reichheld in the 2003 Harvard Business Review. It measures customer loyalty and tells you if your customers are likely to promote your company or product or service.

But CSAT has been there forever. It measures customer's (or user's) overall perception about your company and tells you if your company or product or service actually met their expectations.

CSAT depends on your customer's expectations and the critical-to-quality (CTQ) requirements.

NPS predicts potential for renewals, revisits, "come back again", and crowd-sources your referral revenue-stream. CSAT summarizes your company's or product's or service's performance.

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Both are business-outcome metrics that are equally important to measure and both relate to Kano's Customer Experience and Competitive Advantage story.

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There is a known strong correlation between the two metrics, especially in the tails of their statistical distribution. Causality or "which one causes what" is yet to be determined. High CSAT is likely to result in Promoter status. Low CSAT will push a customer within the detractor and neutral zone. Neutral and Passive makes a dead zone where drivers and behaviors of customers are harder to decipher. In this zone, studying behaviors shown by repeat customer (#bigdata), can provide additional insights.

There are however important business processes and behavioral drivers that are common to both CSAT and NPS.

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Occupy Customer Experience: #OccupyCX @GoDaddy

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GoDaddy.com employs more than 3,300 employees with 8 locations, including Arizona, Iowa and India, and provides "follow-the-sun" 24x7x365 sales and support commitments.

In this series, we test the operational maturity of companies and organizations in how they leverage social media channels for sales and service processes.

For Go Daddy, we asked one simple question: How well does Go Daddy retain and upsell its customers when these customers reach out to them and bring their concerns via Twitter?

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Occupy Customer Experience: #OccupyCX @Delta #Fail

 

 

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Delta Airlines employs more than 80,000 employees worldwide and has a fleet of more than 700 aircrafts and has 160 million customers.

It has a reputable social-media operation. Or so we have read...

In an article written by Dennis Schaal, Inside Social Media at Delta Air Lines - A Behind The Scenes Look on June 10, 2011, he mentions that they have a control room just for social media at their headquarters, and that they knowingly don't respond to all tweets, stating: "The social media staff doesn't respond to every tweet about the airline, and does its share of apologizing to customers."

At PAKRA, we decided to dive a little deeper and experiment with the Twittersphere for Delta Airlines and see exactly what is going on. We wanted to get few questions answered:

(1.) Since Delta knowingly doesn’t respond to every tweet about the brand, would they be more likely to respond to tweets that areincluded in the “Dreaded” hash-tag #Fail search? As you know, if this hash-tag is included in a tweet about your brand, the customer is probably quite upset with your brand and you are at risk to lose them as a customer. Surely, Delta will respond to all of “these” tweets. Right?

(2.) Why does Delta not respond to all tweets? As we see from the article by Dennis Schaal, Delta has about a dozen "Social Assist Agents" on a 24x7 follow-the-sun support schedule. What stops them from handling more tweets, especially potentially harmful ones like those that include "#Fail" in their tweet?

We analyzed all tweets in a randomly selected time period that included the name "Delta" with the hash-tag #Fail in the tweet text.

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Why it is time to Occupy Customer Experience? #occupycx

You must have read this recent article, “Three Months in Customer Service Limbo”, by David Segal in the New York Times. The article discusses the fate of a customer at the hands of customer service, customer's trials and small successes, and well! spoiler alert -- "Still! Unresolved issues". Oh! What drama. I suggest you read it too.

It is time for us to Occupy Customer Experience.

You, the (B2B or B2C) Customer

As you searched, vetted, purchased, used and reviewed products/services that will help you, you too experienced some degree of failure or had instances where your expectations were not met (if not to this extreme degree in the Times article). Some of you also use social-media channels such as Twitter, Linkedin, Facebook, and Yelp to communicate your frustrations and delights. Some of you will also agree with me that Revenue and Operational Margins are the two KPIs that your company/organization/institution closely manages.

You, the Manager

Given that you and your team deliver products/services, you are always looking for ways to increase your revenue while reducing operating costs. Among all channels of customer interaction (voice, chat, web, face-to-face and social media), social media is still the cheapest way to find and manage customers who reach out to you via social media.  Also, let’s not forget the amplification effect on your brand. Who can forget the Alec Baldwin tweet on American Airlines, or the Komen Foundation fiasco with Planned Parenthood?

"Customer Experience" is why companies/organizations/institutions exist. Customer experience drives both revenue and operational costs. Your customers are just like you; they want to do business with you using these channels. What is stopping you from delivering exceptional customer experience?

Coming Soon at a PAKRA channel near to you – "Thought-provoking Discussions". Please join the discussion.

 

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