Business benefits of the total customer experience
Measuring and managing the customer experience has been an increasingly important aspect of communications service provider (CSP) operations as the CSPs vie for the most valuable customers and work to increase sales to all of their customers. Towards this end, many CSPs have tied managers’ – or even all employees’ – compensation to customer satisfaction measures.
Customer satisfaction is measured in a number of ways, but the traditional method has consumers rating their satisfaction on a scale from 0 to 10. Recently, “Net Promoter Score” (NPS) has enjoyed great popularity. It is a simplified method that takes the fraction of “promoters” (roughly, consumers with a 9-10 satisfaction rating) and subtracts the fraction of “detractors” (roughly, consumers who rate 0 to 6). Thus, NPS can go from -100 to +100.
But although, in general, increased customer satisfaction can be positively correlated with business success, little research has been done to answer the question “What is the quantitative business effect of increasing customer satisfaction?” This white paper provides an answer to this question.