How to Use Generative AI to Encourage High NPS and Customer Loyalty 

By Machielle Thomas
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Chip Bell, renowned customer loyalty consultant, said “loyal customers, they don’t just come back, they don’t simply recommend you, they insist that their friends do business with you.”

It’s no wonder that customer loyalty is such an important goal for businesses of all kinds to meet – though it can be a difficult one to measure. 

Over the last twenty years, the Net Promoter Score (NPS) has been a critical metric for understanding customer loyalty and how it can contribute to company growth. 

The metric was developed by Fred Reichheld at Bain & Company and Satmetrix in 2003 as a simple and straightforward measure for the difficult to track phenomenon, and has since gained widespread acceptance across industries as a trusted tool for gauging customer loyalty. 

If you, like many, are working to improve your NPS numbers, Forethought’s automation tools can help. Leveraging generative AI and automation, like Autoflows, enhance the customer experience, improving satisfaction and the likelihood they’ll maintain a relationship with your business and recommend it to others.  

What is the NPS and What Does It Measure? 

By measuring the likelihood that customers will recommend a company’s products or services to others, the NPS provides insight into customer loyalty and advocacy. The score ranges from -100 to 100, and can be a robust predictor of business growth and reflect customer perception of a brand.

NPS is calculated by asking customers one question: “On a scale of 0-10, how likely are you to recommend our company/product/service to a friend or colleague?” Respondents are then grouped into Promoters (9-10), Passives (7-8), and Detractors (0-6). The score is calculated by subtracting the percentage of Detractors from the percentage of Promoters.

When to Measure NPS

Similar to other customer service metrics, like the CSAT (customer satisfaction score), NPS is evaluated after customers go through key touchpoints. 

That could mean: 

  • After a purchase. 
  • Post-customer service interaction. 
  • Or since using your product. 

To get a more comprehensive picture of customer loyalty, NPS is also regularly measured to track trends over time – either monthly, quarterly or annually. That way, you can evaluate the impact of any changes in products, services, or customer engagement strategies. 

Who Benefits from the NPS

Professionals in marketing, sales, and customer experience typically use the NPS. 

Customer Success Managers, Marketing Managers, Sales Managers, and Chief Experience Officers can all benefit from measuring loyalty. Plus, leadership teams use this metric to assess business health and make strategic decisions.

Basically – it helps from bottom to top: 

  • For individual contributors, particularly in sales and customer-facing roles, NPS provides valuable feedback on how their interactions influence customer loyalty and advocacy. High NPS scores suggest customers are likely to refer others, indicating positive interactions and relationships.
  • NPS can serve as a team’s key performance indicator, shedding light on how their collective efforts impact customer loyalty. High NPS can lead to team recognition and provide motivation, whereas low NPS can highlight a need for improvement or realignment.
  • On a company level, a high NPS score signifies strong customer loyalty, the potential for organic growth through referrals, and a positive market reputation. Conversely, a low NPS can signal problems with products, services, or customer relationships that could hamper business growth.

NPS In the Real World

NPS benchmarks can vary greatly by industry. However, an NPS of 0 is generally considered average. Anything above 20 is good, above 50 is excellent, and above 80 is world-class.

For instance, Tesla, a company renowned for its innovative electric vehicles and energy solutions, is an example of a company with a high NPS.

In 2020, Tesla had an NPS of 96, one of the highest in the automotive industry, showcasing their ability to inspire customer loyalty and advocacy.

Tesla customers are certainly the most die-hard car buyers. Experian found almost 71% of Tesla owners who disposed of a Tesla got a new one. 

Boosting Customer Loyalty With Generative AI and Automation

Ok – you’ve measured customer loyalty – how do you cultivate it? Well, generative AI tools can help. 

In fact, AI and automation can contribute to enhancing NPS in several different ways:

  • Automate Follow-Ups: Post-interaction follow-ups can be automated to gauge customer sentiment, collect feedback, and respond quickly to any issues, improving customer relationships and NPS.
  • Personalized Recommendations: AI can analyze customer data to offer personalized product or service recommendations, increasing customer satisfaction and the likelihood of recommending the company to others.
  • Use AI for Predictive Analysis: Predictive analytics can identify potential detractors before they cause damage. By proactively addressing these concerns, companies can improve customer relationships and boost their NPS.
  • Autonomous Agents for Immediate Support: Autonomous agents can provide instant customer support, resolve queries promptly, and enhance the overall customer experience, all contributing to a higher NPS.
  • AI-powered Customer Segmentation: AI can segment customers based on their likelihood to recommend the company’s products or services. This segmentation strategy allows businesses to focus on enhancing potential Promoters’ experiences and addressing potential Detractors’ concerns.

And by automating some of your processes, you free up time for your team to focus on more complex touchpoints. The personal, human touch will always be an essential element of a superior customer experience and loyalty.

Learn more about our Autoflows solutions by watching our demo here

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