Can increases in NPS boost your sales revenue? TTEC’s test says yes.
There is a wide consensus that gathering, analyzing, and acting on customer feedback and Net Promoter ScoreTM (NPS) can help organizations make dramatic improvements in service delivery, and when it comes to sales programs the same metrics reign supreme.
It seems intuitive that prospects who receive a positive sales experience are more likely to purchase, but today’s business leaders don’t measure sales success with customer experience metrics. Instead, they tend to concentrate on close rates and revenue-per-interaction. So, TTEC decided to put this to the test and answer the question: Does delivering an exceptional experience (as measured by NPS) deliver improvement in inbound/outbound sales programs?
We ran a test, and here are our findings.
TTEC introduced customer feedback and NPS methodologies into the training system used to coach inbound sales representatives working in an online chat-based sales program for a large U.S. cable provider. The program included post-chat surveys and provided ongoing NPS feedback, which was used in the coaching process to improve overall performance. Sales representatives were able to see where they ranked on NPS vs. their peers. Plus, they saw the NPS attributes that they need to improve, and could read the individual customer comments that gave additional information on how they could enhance the customer experience.
After the NPS methodologies were implemented, NPS increased by 20 percent. The NPS survey revealed that both customers and prospects ranked their experience with a “top box” score more than 60 percent of the time—boosting NPS by 20 percent. (This company uses a non-traditional NPS scale.)
Furthermore, sales and revenue significantly increased. The chat sales conversion rate went up by more than 62 percent, while the amount of revenue generated for chat interactions went up by more than 51 percent. More importantly, TTEC consistently sees a very high statistical correlation between NPS and sales KPIs, such as revenue-per-chat and close rates.
Experiment shows a direct relationship between NetPromoter and sales. When NPS increases so does sales revenue.
Here is more food for thought. While the role of NPS in demonstrating the level of customer service is well acknowledged and respected, the role of NPS as an indicator of sales success is not widely recognized. Companies often fail to see that the benefits of high NPS results go far beyond customer service excellence. High NPS is the result of great service, which, in turn, is instrumental in leading to increased sales. Therefore, it is correct to make a direct link between NPS and sales, because a high NPS is likely to increase sales.
TTEC recommends that business leaders put mining customer feedback at the top of their to-do list and make voice-of-the-customer programs central within their overall strategy. Customer feedback is pivotal in helping businesses improve service, which (as we have seen here) has a positive impact on sales. Therefore, businesses that are successful in analyzing and acting on customer feedback will also benefit from improved sales. Has your NPS success generated sales increases? Share your experience below.
Net Promoter and NPS are registered trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld. Net Promoter Score is a trademark of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.