June 21 2018

Understanding and Improving Customer Experience – The Benefit of NPS and CSAT

Since 2013, Yodel has been on a mission to gather and evaluate customer satisfaction feedback. Understanding the value of customer experience insight, we have collated more than 5 million customer reviews via our award-winning Have Your Say programme, which measures overall satisfaction and likelihood to recommend. The programme also allows us to assess satisfaction against nine specific elements of the delivery process.

NPS in a nutshell

Looking at NPS first, the Net Promoter Score is a management tool that measures how willing customers are to recommend a company's products or services to someone else. Indicated on a scale ranging from -100 to 100 the Net Promoter Score helps companies to gauge customer loyalty and customer promotion. Recommendations correlate strongly with sales and so, it is in every retailer’s interest to perform well in terms of Net Promoter Score.

NPS survey respondents are segmented into detractors, passives and promoters, with the final net promoter score calculated by subtracting the percentage of detractors from the percentage of promoters.

Further in-depth research into the drivers of NPS can establish what factors have the biggest influence on your score, so you can take steps to improve your performance in a targeted manner, significantly boosting the number of customers who would recommend your services.

It’s an exercise we’ve undertaken at Yodel with astounding results. The development of our premium Xpect service, which provides customers with a two-hour delivery window, was informed by our customer satisfaction research for instance. Since introducing the product, customer feedback has been strong, to the extent that Xpect has now overtaken all other Yodel services in terms of Net Promoter Score.

We’re now helping our retailer partners to achieve the same level of insight into their NPS, working with big name brands to help them implement constant customer-satisfaction improvement.

CSAT Snapshot

Working in conjunction with NPS but differing from it, the customer satisfaction score – CSAT for short, measures levels of satisfaction with overall customer experience and the various elements that go into making the customer journey. CSAT surveys ask customers to rate their satisfaction levels with a product or service on a set scale, from 1-5 for instance; with 1 representing ‘very unsatisfied’ and 5 being ‘very satisfied’.

CSAT scores are indicated on a scale of 0 to 100 percent, with 100 representing ultimate customer satisfaction. The score is calculated by working out what percentage of customers score positively.

As an evaluation tool, a CSAT score can tell a retailer how they’re performing against the industry average and can highlight any areas for improvement, particularly when the surveys are accompanied by questions that enable customers to give a more detailed review of their experience, if desired. In essence, CSAT is an indicator of customer happiness.

Using market research to stimulate improvement

Understanding the nuances of customer satisfaction and customer loyalty is essential to any retailer wanting to gain an advantage in today’s market. Insight is power and consumer-centric brands with an innate grasp of what makes their customers happy can tailor their services accordingly. NPS and CSAT are invaluable market research tools that, when used in conjunction can give a comprehensive picture of your current customer experience and measure the effectiveness of any changes put in place.

For Yodel, listening and proactively responding to feedback is an ongoing process and gives us a clear understanding of what we do well and where we need to improve. As a result of NPS and CSAT insight we’re enhancing our customer experience, while helping retailers to grow and deepen their connection with key markets. It’s all part of our commitment to continual improvement that lies at they very heart of our business.