Customer Loyalty Tracking Through LiveShopper SDK
Whether you are in retail, hospitality, or the restaurant industry, delivering memorable customer experiences is the key to creating loyal customers. It is hard enough to get customers to visit your brand. You can not assume they are happy with their experience. You as a leader of your company, you need to ensure that you are doing everything in your power to deliver that memorable experience so the customer will come back over and over again.
If you are part of a team that deals with customer/guest relations, you’ve probably heard of Net Promoter Score (NPS). But just in case you are not aware of the exact details of this measurement tool, let me provide you with a bit of background information. Net Promoter Score is used to gauge the loyalty of customer relationships to a specific company. Net Promoter Score has been around for over fifteen years and is widely used. It serves as an additional option for measuring customer satisfaction and is typically tied to revenue growth.
To Use NPS, or Not to Use NPS, that is The Question
Whether you believe in the value of the Net Promoter Score or not, many companies make it a key component of their overall commitment to monitoring their customers’ loyalty to their brands. Estimates indicate that 2/3’s of Fortune 1,000 companies use or have used the measure.
The NPS score has been a favorite of corporate CEO’s since it’s inception. It’s simple and easy to understand and can be easily compared within an industry and across sectors. Corporate researchers have not been as big of fans, thinking it is too simplistic of a measure to truly gauge the complex nature of customer loyalty (and satisfaction).
The simplicity of the measure revolves around the fact that it is based on one simple question; How likely is it that you would recommend this product or service to a friend or colleague. The 10-point scale question then divides respondents into Promoters (rate the question 9/10), Detractors (rate 0-6), and those that rate 7 or 8 are deemed to be Passively satisfied. The NPS score is then calculated by subtracting the % Detractors from the % Promoters (those passively satisfied are not included in the calculation).
Beyond the too simplistic criticism, other common downsides of the measure include:
The same NPS score can be registered with widely different percentages of promoters, passives, and detractors.
Skepticism if the score is a good predictor of future revenue growth.
Many firms add other questions that could defeat the simplicity benefit because it is only one question.
Full benefit should include an open-end question of why detractors are detractors, which also adds to the complexity.
Stating the Obvious
I understand this may be elementary to most of you, but it is too important not to state. It will cost you more money to win back those that fall into the “Detractor” category compared to keeping the “Promoters” happy and loyal. Detractors can be loud and easily heard thanks to the many different social media platforms that are available. They obviously won’t buy your product or look for your services.
Of course, the opposite is true with those customers that are happy and act as a promoter of your brand. They tend to spend more money because they love your company, product(s), and or services. They are also great because ideally, you won’t need to spend as much time and energy on this group when it comes to customer care. They are more than happy to refer your company/brand to their family members and friends. Another benefit of this group is it will cost you less money from a marketing perspective because they will do the work for you. Of course, this doesn’t mean you can completely stop all marketing and advertising. But every little bit helps when it comes to how much you spend to win customers over and keep them loyal.
Using LiveShopper SDK to Gather the Data
As noted, even with its drawbacks, NPS is a widely used measure of loyalty and will continue to be. The central question is how you will most effectively use the measure. Ideally, you would have a fast, effective, and flexible way to survey the right audience to gather your NPS number. Additionally, you would have a flexible platform to help gather the ‘whys’ behind the ranking (the open end question) and you would have the ability to ask a few other key measures, such as “customer satisfaction”, “will you return to this brand”, or “use the service again”, etc. (of course keeping the overall survey length short). A built-in weighting tool would be ideal as well.
If you are on the side of using the Net Promoter Score to measure customer loyalty, there are several options/technologies to capture this type of data. You could use a market research company or buy a software tool that will help you gather the data you need.
However, there is only one that will give you the results you are looking for, plus allow you to capture other data based on your key initiatives, and that is LiveShopper SDK. I’m sure you are asking yourself, “Why is LiveShopper SDK such a good fit for this type of research?”
With LiveShopper SDK, you can collect the data in real-time from your customers through two great options. You could take our technology and plug it into your existing mobile app that your customers are already using. If you don’t have an existing mobile app, you in luck, because you could still gather the same results by using our custom-designed PrestoShopper mobile app. You control the questions you want your customers to answer, so not only could you ask the standard Net Promoter Score question, but you could also add other key questions to gather supporting insights. Our technology gives you the ability to combine many different market research and consumer insights initiatives. Why not combine budgets and save money?
As you may already know by now, LiveShopper SDK allows you, as the client, to control the incentive being delivered on the back end to the customer for their response. This is just another added benefit of our platform because it helps drive sales to your brand(s).
Get Moving
Don’t wait until it’s too late to start measuring your brand performance. Once you are trying to respond to your detractors through social media, it’s too late to win them back. Whether you want to know what customers think of your product, how you are performing operationally, or if training classes are working, LiveShopper SDK (or PrestoShopper) is the mobile technology to bring your efforts into the “next generation” of research. You can do all of this with our platform, plus ask those key Net Promoter Score questions. You could have LiveShopper SDK or PrestoShopper set up and collecting data within a matter of days.