What is a Net Promoter Score (NPS)? What is a net promoter score?
The Net Promoter Score (NPS) gives a comprehensive view of customers' loyalty and their willingness to promote or recommend a particular product or service of a company. This gauges customer satisfaction as well as loyalty to a company’s product.
The customers are given surveys that ask how they would rate a particular product or service to their friends or colleagues. They may choose between a scale of zero to ten.
According to the ratings given by the respondents, they will be classified into three categories. These are the promoters, passives, and detractors. NPS meaning in BPO
The ultimate goal for call centers is to provide a positive customer experience for every customer. However, improving efficiency and productivity and retaining customers is impossible without quality assurance (QA).
Revenues and ROIs cannot be boosted without evaluating first how contact centers are successful in helping their clients.
NPS score is critical for businesses both operationally, tactically, and strategically. Beyond assessing customer loyalty and determining what customers feel towards a business, it also has a direct impact on how well a company performs in terms of customer service.
NPS leaders tend to outgrow their competitors as they gain more satisfied patrons that act as brand promoters for their families, friends, and colleagues. How to measure Net Promoter Score
NPS scores are usually determined by the difference in the proportion of customers that will act as key drivers in promoting your business to prospective new clients and unhappy customers known that are commonly called detractors.
You can easily know your Net Promoter Score by handing out NPS surveys to every buying customer in your business. Include questions that ask about the likelihood of them recommending your brand— as well as products and services — to other people.
In order to get an accurate NPS score, customer service agents also provide a 0-10 numerical scale that customers can choose from. This gives you an idea of areas of improvement you can focus on to raise your overall score.
After customers answer the NPS survey, a company could now group their customers into three categories. Response rates that fall between nine and 10 or the "promoters" are the ones who are willing to talk about your brand to new customers.
Those who would give lower scores that range between zero to six are the "detractors" or the unhappy customers.
Meanwhile, customers who would give a score between seven and eight are the "passive" or the ones who are not guaranteed to expand your brand recognition to a wider audience. NPS formula
After determining which of the customers are promoters, passives, or detractors, it is now time to get your overall NPS percentage.
This is the formula for getting a company's NPS rate:
Percentage of promoters - Percentage of detractors = Net Promoter Score
For example, you gave out NPS surveys to 1,000 customers and 700 of them are promoters, 100 are passive, and 200 are detractors, your NPS would be at 50%. The importance of NPS
As mentioned above, the Net Promoter Score predicts the overall customer-company relationship of a business. A higher NPS score means that you have a solid customer following which in turn, predicts lengthens the lifespan of the company.
Measuring your NPS also provides the following advantages: Gain more customer feedback
Through NPS surveys, companies have the chance to gather more customer feedback from their new and existing clients. It gives them a chance to determine and improve the parts of the customer journey that their clients like, as well as correct the unhappy customers' negative impression of the brand. Differentiate the promoters, detractors, and passive customers
By checking each customer responses, NPS analysts are able to put promoters, detractors, and passive buyers into their own groups. Putting them into categories allows agents to plan the appropriate approach for each group and how they can address their needs. Drive revenue growth
Loyal customers are usually the ones who are set to come back to a company or brand and repurchase their products or services. This means that the more loyal customers a store has, the faster they are to experience business growth and development. How to improve NPS
Customer satisfaction is more subjective than objective. Because it depends on what the customers feel towards the brand, it can be unpredictable and usually varies from client to client.
Although there are no guaranteed ways of instantly improving the NPS score of a company, there are some practices that you can use to enhance customer experience and achieve happier customer interactions in a business. Here are some of them: Remove silos in the call center
Aside from quality assurance, almost all customers want to experience a faster service. They do not want to go through different departments before getting an effective resolution to their problems.
Removing silos within your call center and technical support services allows your buying customers to easily and quickly find the answers that they require. To do this, you should train and empower your call center agents to answer all of the queries that they receive.
Make sure your average handling time of any questions is shorter but provides efficient answers that would help shoppers with their problems. Identify poor performers and provide training
Gathering customer feedback from your market research circles enables business leaders to find poor performers in the company. Through this, businesses can act on these customer reviews and make changes within the company. Maintain consistent customer service
Customer loyalty is a crucial aspect of the Net Promoter Score. To achieve this, agents must cultivate customer satisfaction in each customer that they encounter.
Giving consistent service is the key to reaching customer satisfaction. Set attainable standards that can be measured, easily shared, and easily translatable. Depending upon the data you collect, it can help you determine the retention rate of the client, staff churn rate, and first contact resolution rates. Measure QA as part of daily operations
Customer responses in NPS surveys must be consistently studied and compared. If you do not know how to start, the adjustment may not be necessary. Make a regular NPS report that identifies promoters, passives, and detractors.
The reports should have responses to follow-up questions and open-ended questions. With this, you will be able to pinpoint the factors which directly influence NPS scores as an individual. Engage with customers
Ideally, you should engage all clients — whether loyal customers or unhappy customers. Welcome, take note, and address every customer feedback.
Keep everyone updated with the results of your NPS surveys so that they would know who they should engage more. Net Promoter Score for companies
The NPS is calculated by deducting the detractors’ percentage from the promoter’s percentage, which is the generated result or score between negative one hundred and one hundred.
Your customer NPS gives you an idea of the level of customer satisfaction you've achieved thus far. The higher your NPS, the greater number of promoters, or happy customers, you have relative to detractors, or unhappy customers.
Measuring customer NPS over time informs companies how customer perception is changing —and if it's trending positive or negative. If NPS is steadily increasing, your company is making customers happy.
But if the Net Promoter Score takes a dip — or if you start getting more passives than promoters — that's a sign that you need to dig into customers' qualitative feedback.
Outsource Accelerator has over 5,000 articles, 350+ podcast episodes, and a comprehensive view of over 2500 BPO companies… all designed to make it easier for customers to learn more about Net Promoter Score and all the data points needed to keep a higher NPS over your competitors.
What is Customer Satisfaction Rating (CSAT)? What is customer satisfaction (CSAT)?
Customer Satisfaction Score (CSAT) is a popular key performance indicator that tracks customer satisfaction. The process involves a survey question or a set of questions.
The customers answer by indicating their level of satisfaction. The most popular scale is 1 to 10, with 1 being the least satisfied and 10 as the most satisfying level.
The result gives a business the necessary output whether or not to improve customer service right there and then. However, the possible ambiguity might be a disadvantage, especially if a customer is dissatisfied with the service. Why is CSAT important?
CSAT scores allow companies to look into how their customer feels in each interaction with sales agents. CSAT provides business leaders with two important pieces of information — a detailed insight into every touchpoint of the customer journey and the overall customer experience.
Customer satisfaction scores enable businesses to determine the pain points in their service that impacts the customer journey. Addressing all these pain points and correcting them helps identify unhappy customers and turn them into happy customers, which in turn, increases the customer lifetime value over time.
Buyers are also more likely to become repeat customers — and eventually, become loyal clients — if they have experienced an excellent customer experience in a particular business.
Moreover, because CSAT is measured through doing a customer satisfaction survey, as well as gathering feedback and online reviews, sales agents can do a deep dive into their customer base. This means that they now have access and the capacity to understand what their clients need and want from any business. How to calculate CSAT?
Measuring CSAT is pretty straightforward.
All you have to do is add the positive responses together, divide them by the total number of responses collected, then multiply by 100. The outcome leaves you with the overall percentage of customer satisfaction in your business.
For example, if 50 people took part in your customer survey and 30 of them gave positive feedback — your CSAT score would then be 60%.
(30 positive responses / 50 total responses = .60 x 100 = 60%)
This indicates that while the majority of your clients are satisfied with your service, you can still improve it to better serve your customers.
The best time for measuring customer satisfaction is post-sales. These times are especially crucial for repeat and new customers as the experience is still fresh in their minds. What is a good CSAT score?
Now that your customer satisfaction score, the next thing to do is determine if it is good enough to guarantee excellent customer service. Is your numerical score enough to gain new customers and improve the overall customer lifecycle?
While every industry has different standards for CSAT scores, an excellent rate usually falls between 75% to 80%. Reaching this customer satisfaction rate means that three out of every four buyers had a positive experience with your brand.
While most companies would love to see 100% satisfaction in their services, that is rarely the case. Additionally, the pandemic has certainly affected customer happiness when purchasing a product or service.
Each buyer has their own opinions and standards. Having customer conversations, hearing their responses, and gauging customer happiness ton a product or service can help companies create new strategies that could improve customer satisfaction. CSAT in outsourcing
Customer satisfaction score might be the simplest metric but it’s a powerful tool for all businesses. It encompasses the whole customer journey and helps businesses determine the things that they should improve on to gain customer loyalty.
Measuring customer satisfaction is quick and easy. You add up all the ratings and divide the total score by the number of respondents. Most likely, you’ll get a percentage.
Get your customer satisfaction score a notch higher by outsourcing your customer service team. Check out Outsource Accelerator’s extensive list of outsourcing companies in the Philippines. Strengthening customer loyalty with CSAT
Customer loyalty refers to buyers who always go back to your brand to do repeat business. It is usually brought on by customer satisfaction, positive customer experiences, and the overall value of the goods or services a customer receives from a business.
A company's CSAT score evaluates the services of different brands and determines if your company is able to retain customers instead of losing them to competitors. It also brings customer feedback so that businesses can strengthen their services.
It could be hard for business owners or sales representatives to identify unhappy customers from satisfied customers. CSAT surveys assist in detecting customer satisfaction at the earliest stage of the customer lifecycle.
They allow companies to amend poor customer service and improve it before experiencing the worst-case scenario — customer churn.
Remember, customer expectations for a possible repeat business rather than lose them to competing brands. Trust is a critical part of any business relationship, but finding the right strategies to improve it — along with your customer satisfaction — can be challenging.
There is more than one side to the customer satisfaction equation. The key to improving customer satisfaction is a healthy balance between understanding and improving performance internally while doing the same with customers externally. Tips to improve your CSAT scores
There are a couple of tricks that you can use to improve your CSAT score and ensure excellent customer interaction all the time. Here are some of them: Request customer feedback
The easiest way to gauge your market's reaction to your products or services is to ask them to rate their customer experience. This can be done by handing out customer satisfaction surveys to post-calls or asking them for an online review.
Gathering customer feedback will help you determine the issues in your service and address it quickly so that you wouldn't lose the trust of your clients. Meet customer expectations
Customers usually expect to gain whatever good things you have said about your business. So, to keep them satisfied, it is important for your whole team to work hard in meeting those expectations.
For example, if you say that your customer support call center is open 24 hours, then you have to put some of your staff on standby at all times for any inbound calls. If you advertise that there is a promo for a specific product, then you have to uphold for every buyer.
Additionally, it is important to remain transparent with your consumers. From the time that they are still prospective buyers, you have to make sure that they already know what to expect from your brand and the policies that they will be agreeing with as paying customers. Provide proactive customer service
If you want to boost customer satisfaction, you have to make sure first that you have a dedicated contact center for your clients. This contact must be personal, timely, and always pertinent to the user.
Reduce inbound calls in call centers as they increase agent effectiveness. By offering customer service proactively you can show the customer that good support does not only benefit the business. CSAT vs NPS vs CES
CSAT is not the only key performance indicator that measures customer satisfaction. Businesses also look into their net promoter score (NPS) and customer effort score (CES) to capture customer feedback and measure customer loyalty.
The net promoter score determines the likelihood of customers recommending your business to other consumers. The higher your NPS score is, the bigger chance there is for brand recognition. NPS scores are usually measured using a 1-10 rating system.
CES, meanwhile, measures customer sentiment on how well they have used your products or services. The CES surveys aim to determine the ease or difficulty of customers deciding on purchasing your products.
Full-time employee definition Full-time employee definition
A full-time employee (FTE) is used to describe someone who is exclusively employed by a company. This employee may work for forty hours a week or more, which could be equivalent to day-time business hours.
A full-time employee (FTE) is also privileged with statutory benefits that are provided by the employer.
The Philippines is one of the countries where the BPO industry flourished greatly. It has since opened many job opportunities for the people, employing about 1 million alone within the outsourcing industry.
In the outsourcing industry, a full-time employee can have varying working shifts to accommodate the clients’ timezone. Importance of designating FTE status
Distinguishing employees between “full-time” and “part-time” is important because part-time staffers typically do not receive the following: Paid time off for holidays or vacations
Employer retirement plans.
Designating full-time and part-time status to your staff can also affect whether your workers are considered as salaried or hourly, and exempt from taxes or not. This can also determine how you pay your workers for their overtime shifts.
This is why it’s crucial to understand the difference——and how many hours part-time and full-time employees typically work—before hiring employees at your small business.
However, as a business owner, you have to be careful not to discriminate by making some workers in similar jobs part-time while others in the same job are full-time.
Denying benefits to part-time employees who work in the same range and hours as your full-time staff can have consequences depending on your local laws. Outsourcing full-time
Outsource Accelerator provides you access to great full-time dedicated remote staff that you can outsource from the Philippines starting from $6 per hour, where you can save up to 70% on staffing costs.
We have over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 2500 BPOs… all designed to make it easier for clients to learn about, and engage with outsourcing.
What is What is business process outsourcing? What is Business Process Outsourcing BPO?
Business Process Outsourcing (BPO) is the delegation of business processes to an external service provider to a nearby or farther location. BPO uses various technology-enabled services to optimize the delivery of services.
Some of the usual outsourced business functions are the following. Payroll
In the case of content providers, these could mean hiring writers, remote editors, or virtual assistants.
BPO speeds up processes and enhances efficiency. Companies that outsource some of their business processes use their time on core services and competencies.
With this shift in focus, companies improve their current processes which may result in improved customer satisfaction. BPO helps companies divert their resources to more critical business strategies.
Often, companies find it impractical to hire a full-time position in-house because of the cost associated with doing so. Outsourcing services can also help them save costs and resources in hiring suitable employees. How does Business Process Outsourcing work?
Business process outsourcing happens when a business taps a third-party service provider to operate some of its internal processes. Such ‘processes’ include customer service, accounting and finance, or sales.
It is different from hiring an agency to do specific tasks, as the outsourcing provider (BPO) is more concerned with the ongoing production of labour-intensive tasks, instead of the higher-level strategy and guidance.
Now, business process outsourcing has broadened and is more akin to staff augmentation, or staff leasing. What are the benefits of business process outsourcing?
There are many benefits to outsourcing, as well as some downsides and risks. The common benefits include: Cost savings
Companies can enjoy savings of up to 70% by leveraging the salaries and costs in countries such as the Philippines and India. Global market
Businesses get to access a bigger pool of talent that can fit their requirements. They can have better options in hiring employees since they are not limited to what is available in their home countries. Global presence
At the same time, business process outsourcing opens clients to global trade opportunities. They can establish their global presence and expand more easily to other locations since they already have operations in the area. Flexible workforce
BPO reduces internal local compliance obligations including providing additional office spaces to employees. Instead, organizations can hold their business operations on a remote setup, most usually having their teams in an office provided by the BPO firm. Leverage skill
Companies cannot always do everything on their own. BPO enables them to leverage the skills of other specialist companies on more complex tasks such as accounting and IT. Focus
Lastly, BPO enables organizations to focus on their core business functions. This is since most of their non-core business operations are done with the help of a reliable service provider. Business process outsourcing examples
The business process outsourcing sector is a vast industry, generating over $200bn annually, and employing millions of people worldwide.
BPO can be seen in different forms and contexts, from hiring single staff to getting an offshore team. Some examples of BPO include: Big enterprise
Facebook and Uber outsource many of their operational functions, including content moderation for Facebook, and customer service for Uber Medium-size businesses
A medium business with 50-500 staff might outsource the labour-intensive accounting and finance functions to a team in the Philippines. Small business and entrepreneur
It is common for small business owners to have a Virtual Assistant (VA) working for them full time and remotely from the Philippines. What are the different types of BPO?
The type of business process outsourcing can be characterised by their specialisation, location, and size. Generalist or specialist BPOs
Business process outsourcing is in the human resources and professional services sector. However, their services extend across all industries. The majority of BPOs are generalists, in that they offer a full range of professional services.
Meanwhile, some specialise in certain verticals such as the following. Legal process outsourcing
Legal process outsourcing deals more with delegating legal processes and compliances to legal firms in another area.
Knowledge process outsourcing
Meanwhile, knowledge process outsourcing enables companies to outsource knowledge-related work including research and development, innovation, and creatives. Location
Business process outsourcing typically operates from developing nations such as the Philippines, India, and Colombia. They typically have cheaper cost-of-living and bigger populations. Different locations offer different advantages. Size of BPO
The bigger BPOs employ more than 250,000 people. They are huge, global operations. Medium-sized BPOs range from 500-5,000 staff and offer a full range of services. The smaller BPOs might have 1-500 people. Functions of business process outsourcing
Collectively, business process outsourcing provides any kind of staffing solution. Common functions of BPO include: Finance and accounting
Outsourced finance and accounting services help businesses manage their books, monitor cash flow, and keep up with corporate income tax compliances without fuss. Healthcare
Healthcare outsourcing, meanwhile, organizes various back- and front-end functions done for the healthcare and insurance industries. Creative and content
Creative services outsourcing covers everything from post-production of Hollywood movies to newspaper and website content. Tech, IT and development
IT outsourcing involves delegating network management, web and app development, and cybersecurity protection to IT firms in different countries. Sales & customer support
Some BPO providers specialize in sales and customer support for pre- and post-sales transactions. This helps companies meet the expectations and demands of their customers, keeping them satisfied even after their purchase. Marketing
BPOs and marketing firms can help in ongoing marketing, communication and branding activities for their clients. This helps them attract more suitable leads in a cost-efficient way. Talent and HR
Businesses can delegate HR, recruitment and compliance to professional employer organizations to maximize recruitment and workforce management. Administration
Generalist BPOs help organizations accomplish general business administration and operational activities. This includes data entry, appointment setting, and other related functions. Supply chain management
Lastly, e-commerce stores benefit from outsourcing supply chain management to manage warehouse and delivery processes. Top BPO companies in the world’s top outsourcing hubs
A wide range of business process outsourcing companies in different parts of the world provide utmost services to their Western and local clients. Many of them even earned recognition by award-giving bodies due to their performance in both their roles and their level of care for the employees.
Check out the top BPO companies in several outsourcing destinations below. Top BPO companies in the Philippines Top Indian BPO companies Top South African BPO companies Business Process Outsourcing (BPO) services
With the rise of new offshore outsourcing locations, companies can have better options in terms of location and services they can delegate. However, finding a suitable BPO company can be a daunting task to be done on their own.
Good thing advisory services such as Outsource Accelerator is there to help them.
Outsource Accelerator is the most trusted source for independent information & advisory for Business Process Outsourcing (BPO). We have over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 2,500+ BPOs from different locations.
Outsource Accelerator's offerings make it easier for clients to learn about, and engage with, business process outsourcing companies worldwide.
Want to learn more about outsourcing? Check out the Inside Outsourcing book as well as the Inside Outsourcing book review today!