In our last blog, we discussed what the Net Promoter Score (NPS) is, and how it relates to banks and credit unions. Now that we understand the connection between NPS and consumer loyalty, and how NPS is strongly tied to sales and profitability, you may be wondering how your institution can improve its NPS. This blog will discuss strategies to help you boost your Net Promoter Score, and ultimately, your consumer loyalty.
Focus on your customers
It may seem like an obvious point, but the best way to increase customer loyalty and satisfaction is to make changes that your customers are asking for. Study and survey your consumer population, and aim to make improvements that will impact a large percentage of your customer base. This approach has a greater potential to impact your overall NPS, plus you aren’t irritating customers with changes or communications that do not bring any benefit to them.
For example, mobile banking has become more popular, particularly with younger generations. If your consumer population includes a large number of individuals under age 35, you may want to shift focus to mobile and digital banking channels. At the same time, you’ll want to remember your other consumers, and maintain multiple banking channels to satisfy all your members.
Implement change effectively
Introducing new products, benefits or policies can be an effective way to boost customer satisfaction and increase your Net Promoter Score. However, this strategy is only effective is change is implemented effectively.
Even positive changes, if implemented poorly, can have a negative impact on your NPS (and overall consumer loyalty). Why? Because people often struggle to adapt to change, even when it is beneficial change. They are used to doing things a certain way, and it can be hard to suddenly change.
Employ these change management and planning techniques to ensure smooth transitions when you introduce change to your consumers:
- Focus on long-term customer benefits rather than just “quick wins”—your goal is to build lasting customer relationships.
- At the same time, ensure a positive short-term experience during that longer transition.
- Communicate heavily when a new change is put into place, particularly one that requires customers to take action or do something differently. Send communication before, during and after the change is implemented.
- Have customer service staff trained and ready to answer questions or assist with problems, particularly for technological upgrades or implementations. Some customers may struggle to adapt to new platforms.
- When possible, do a phased transition so customers have time to adjust to the change, rather than an abrupt cut-over to a new practice or platform.
Ready to learn more about Net Promoter Score and how it can benefit your bank or credit union? Download our latest whitepaper, How Banks and Credit Unions Can Use Technology to Improve Consumer Loyalty. And if you have any thoughts or questions, please share them in the comments section below.