NPS – Successful Feedback Management in spite of tight resources

January 4th at 11:51am by Susan Levermann

A Net Promoter System shouldn’t just generate a score. The correct use of NPS to manage feedback and successfully close the feedback loop will bring your organization long-term benefits. NPS software such as zenloop helps you to efficiently and sustainably close the feedback loop, even with limited resources.

Many companies shy away from using a Net Promoter System from fear of insufficient resources. But even with a tight budget, minimal IT-capacity and only a few employees it is easily deployable and its success pays for itself in long-term organizational benefits.

Tight Budgets: Using the Net Promoter System to increase Conversion Rate and Revenue

When evaluating the worth of measuring customer feedback with an NPS system, many firms just see the costs. However, using such a tool for feedback management brings many benefits, automates processes and helps them run more efficiently. When used correctly, it dramatically increases both conversion rate and revenue.

Using the correct Feedback Management software to cut costs

New tolls cause costs. Many firms simply see the figures on the bill and are put off when they think of the additional costs that zenloops feedback management software causes. We’re often told that there are already employees dealing with feedback management who manage without either tools or automation.

What is frequently forgotten is that these employees often both cost more than software and spend lots of time on intensive evaluations. Assume that the relevant employee has an hourly wage of €20, and spends 40-60 hours a month gathering, analysing and internally sharing feedback. This creates costs of between €880 - €1200 a month.

Alternately, you could use a feedback management platform with the following significant advantages:

  • Costs are limited to the real Answers/Feedback generated and therefore to real results
  • The automatic evaluation is not prone to the errors of judgement of one or more employees
  • Feedback is automatically relayed back to the company, meaning there is no one with a monopoly on knowledge
  • The use of NPS systems makes feedback management both universal and scalable
  • With increased scalability and automation the relative costs fall and leads to a significant cost saving

Raising Conversion Rates thanks to NPS Systems and Feedback Management

Using an NPS system and a closed feedback loop can also increase your conversion rates. Often implementing NPS systems helps reveal the reasons and causes for an unsatisfactory or falling conversion rate for the first time. An example from Flaconi demonstrates this clearly.

  • Flaconi noticed a drop in conversion rate of 20%
  • This falling conversion rate lead to a corresponding 20% drop in revenue
  • By using an NPS system at different touchpoints along the customer journey, the cause could be identified
  • An error by a payment services provider meant that existing customers could no longer pay by invoice, which lead to many of them not buying
  • With the help of constant feedback management and the continual development of the NPS system, Flaconi could increase their conversion rate by 50% in two years

Increasing your revenue with the Net Promoter System

Implementing an NPS system for feedback management such as zenloop brings many positive effects. A long-term, renewable increase in revenue is just one example.

Revenue and Conversion Rates are easily increased with a successful Feedback Management system

Let’s do the math with the following example: An average value basket is €100 and you have 10,000 customers a month. The NPS system sends a satisfaction survey to every one of the last 10,000 transactions, reaching the last 10,000 customers. With a expected response rate of 20% we can assume 50% promoters (fans/satisfied customers) and 10% detractors (critics/dissatisfied customers). This equates to 1,000 promoters and 200 detractors.

If the 200 identified detractors are prevented from abandoning the relationship through closing of the feedback loops and are converted into repeat customers, then a potential €20,000 loss of revenue is saved.

Additionally, the promoters ensure new revenue. Statistically, 10 promoters are needed to gain 1 new customer. This results in our 1,000 promoters generating an additional €10,000 of revenue.

Extrapolating from our example shows that the correct application of the Net Promoter Systems and the use of feedback management generates an additional revenue of €30,000 a month. Over the year, this totals €360,000.

These figures persuade any CFO of the value of using a Net Promoter System for Feedback Management

We all know the feeling of conviction in the value of a tool or measure only to fail getting it past the CFO level when they examine pure figures. CFOs often only see the income and cannot imagine how it was produced. It is extremely important for future incomes to know how it was generated, whether through short term advertising measures, or through promoters - really satisfied customers - making it of long-term benefit.

The application of the Net Promoter System quickly reveals that promoters are both a more profitable and sustainable customer group. E-Commerce shows us that on average, promoters shop four times more frequently and have a basket value 62% higher than detractors. On top of this, promoters more frequently buy additional products and additional paid-for services than critical customers.

Promoters are also less price-sensitive, cost operationally less and recommend products, brands and companies to their friends and acquaintances. It is therefore sensible/recommended to expand from a purely financial focus on the customer to investing in a more customer centric view. Through the use of a Net Promoter System and successful feedback management you can secure and increase long term income. This makes your CFO happy, too.

Tight Customer Service resources: Using NPS for successful Feedback Management

Even when it is vital to engage critical customers for the sake of customer service, many companies feel they do not have the correct resources available. However, using the right templates and automation, it is possible to minimise the work required.

Using Templates and Automation to reduce the customer service workload

To keep customer service simple, several things can help: Firstly, customers can be sorted according to issue, meaning that not every employee need keep everything in mind. Furthermore, templates and auto-responses keep staff time and effort at a minimum.

Rapid responses to critical comments thanks to Boiler Plate text modules

Boiler plate templates are a proven method to easily deal with customer feedback. These need only be finished once and can be continually re-used. The use of boiler plate texts is especially suitable in cases of repeat critical comments.

For example:Paying by invoice is no longer offered. A multitude of customers wish to complain about this, as they have always paid this way and are not prepared to choose another option. The complaints will likely be very similar and the explanation or answer from the company need not change. With pre-prepared sentences these comments can be rapidly and efficiently answered by any customer service staff whilst still leaving enough room for personalisation.

Using E-Mail Templates for ask the reasons behind bad ratings

If a customer leaves a negative score - and by extension negative feedback – without giving a reason, this should be questioned. This does not need to involve a lot of work and can be automated.

All that is needed is an E-Mail template asking for the grounds of their poor evaluation. In just a few steps you can set up a rule to automatically send this mail. Whenever a score of between 0-6 is given without additional comment, the mail is automatically sent to the critical customer. This allows customer service to close the feedback loop without additional effort.

Net Promoter System: Step by step to successful Feedback Management

Don’t forget: Rome wasn’t built in a day. It is not necessary to start immediately with *the perfect* Net Promoter System. One should instead build the process step by step and gradually expand the topic within the organization.

Using the correct priorities, a Net Promoter System and Feedback Management can be gradually incorporated and extended

Setting priorities for successful Feedback Management

If human resources are tight, it is recommended to set clear feedback priorities. Firstly, you should focus on the detractors, the critical customers. There is a 30 to 40 percent chance that they break off their business relationship with you within the first 3 months. This group of critical customers can be further broken down into smaller groups of purchase value (or similar) with feedback management.

The next step is to implement the feedback management for your promoters, your satisfied customers. These can be guided to review portals and platforms in order to turn their theoretically high chance of recommending you into practical deeds and let their customer satisfaction do some good.

The rule of thumb: Every tenth recommendation generates a new order. Investing in the Feedback-management of promoters is therefore not just a logical step but also – seen long term – very lucrative too.

Net Promoter System: Successful Feedback Management of Promoters is especially lucrative

Small steps towards an all round Net Promoter System

The scope of the Net Promoter System should grow slowly. For example begin only using NPS surveys at one touchpoint. After a while build in additional touchpoints and use a Net Promoter System software such as zenloop to roll out a all-encompassing Feedback Management system.

Additionally not all your customers have to be asked. Surveying only 25% still gives a good cross sectional view of customer satisfaction and can have a large impact on business. Bugs can be monitored, developing trends recognized, customer feedback can be fed back into the organization and your employees motivated.

Successful Feedback Management with the Net Promoter System – Simple integration and minimal IT-outlay

Many companies are convinced of the effectiveness of an Net Promoter System and successful feedback management, but are anxious of implementing the system. The reason: fear that such a setup brings enormous IT efforts with it.

This fear is completely unsubstantiated. Even with complete integration of the zenloop Net Promoter System the IT requirements are minimal. Depending on the channel where the NPS survey should originate from, often no developer or product manager is needed at all.

zenloop Net Promoter System (IT knowledge not required)

Getting started with the Net Promoter System and Feedback management need not require IT Knowledge. For example, zenloop can be set up to run NPS-surveys from the “our E-mail” channel.

All that need happen is for users to log into their zenloop account, configure and then send their mail. As long as the recipient list is uploaded in a suitable format (e.g. Excel), then sending the first NPS survey is easy. In only a few, simple steps, your Feedback management project can start and you can begin measuring customer satisfaction without IT department involvement.

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Your Net Promoter System – integrated in hours

Implementing a Net Promoter System like zenloop is fortunately not a large infrastructure project. The whole system can be set up and integrated in only a few hours.

As long as an on-hand marketing or project employee knows some basic HTML, zenloop can be built in to your website without your IT-department via an E-Mail template or Google tag manager. Then your feedback collection can begin.

In short, tight resources do not speak against either implementing an NPS feedback system nor closing the feedback loop. In fact, feedback management platforms like zenloop can ease Feedback handling and make it more efficient, saving you both time and money.

This means that a Net Promoter System is not a project with a fixed end date, but instead much more of a long-term strategy to manage customer feedback, increase customer satisfaction and develop real and lasting customer relationships.

Attracting new customers is seven times more expensive than retaining critical ones. In addition, the use of a Net Promoter System for feedback management helps you prioritize projects and increase the customer focus in all departments.

An investment in a Net Promoter System like zenloop for successful feedback management is well worth it.


Susan Levermann

Content Marketing Manager