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What's all this about NPS?

Posted on 15/02/2018, by Joe Jones

The financial industry has understandably come under a lot of scrutiny over the last decade. The big banks — once lauded as the backbone of the British economy and able to enjoy aggressive customer loyalty — are now seeing their rigid hold on the British public being gradually chipped away.

Building trust with consumers is a big task — especially for newer entries into the market, such as Octopus Choice. A high level of trustworthiness is vital for any business handling personal finances, and particularly the case when it comes to recommending a financial services company to friends or family.

An essential part of building that trust is listening and responding to customer feedback. Octopus Choice takes a rigorous approach to collecting internal and external customer feedback. Feedback helps us understand our customers and what we can do to improve our product. It also helps customers make more informed choices. There are three main ways we collect this information.

Net Promoter Survey (NPS)

NPS is used by businesses of all types to gauge levels of customer satisfaction and how it changes over time. It asks a random selection of users to rate, on a scale of 1 to 10, “How likely are you to recommend Octopus Choice to a friend or colleague?” Responses are then collated to supply an overall ‘NPS score’.

Those who rate us anywhere between 1 – 6 are determined ‘Detractors’. Anyone who rates us 7 – 8 are ‘Passives’. And those who rate us either 9 or 10 are ‘Promoters’. To figure out the Net Promoter Score, we simply minus the percentage of Detractors from the percentage of Promoters. For example, if 60% of respondents are Promoters and 20% are Detractors, our Net Promoter score would be 40.

The benchmark is purposefully high — not even a 7 or 8 rating reflects positively on the net score. This keeps us on our toes. For someone to be considered a true advocate of our brand, a mere positive indifference just doesn’t cut it.

Some customers have responded to this question saying they would be uncomfortable recommending an investment product to friends and colleagues. That’s understandable. Personal finances are, by definition, a personal affair. But “How likely are you to recommend __________ to a friend or colleague?” is the set NPS question used in all sectors. It helps us to benchmark how we’re doing relative to all manner of different businesses.

In other words, we’re simply asking if we’re doing a good job.

Trustpilot

Trustpilot is an independent rating service that allows customers to publicly share their experience of Octopus Choice. Hearing real customer stories helps people make better, more informed, decisions.

Trustpilot is an important tool for Octopus Choice, also. Nothing speaks louder than the independent, impartial feedback of our customers. We strive to gather as many reviews as possible and make full use of that information to improve our product.

Customer service and interaction

Surveys and ratings offer important indicators, but some insights are best gained through personal communication. “I talk to customers all day, every day,” stated Chloe Vaughan, Octopus Choice Customer Service representative. “It gives me real insight into how people feel about us, not just in terms of what they say but how they say it.”

Chloe also noted, “We have an Octopus Choice discussion channel where I post interesting ideas and insights our customers send in.”

Customer feedback is shared across the entire Octopus Choice customer service team and quickly responded to. Quick response builds trust. And it ensures customers feel their personal finances are being handled safely, responsibly and efficiently.

In the often-confusing world of financial services, building trust with our customers couldn’t be more important. That’s why we look for multiple sources of feedback, strive to collect responses from all our customers, and work tirelessly to respond to feedback as quickly as possible.