Aroundhome Relies on NPS® to Increase Revenue
Case Study
NPS as an Indicator of Partner Satisfaction and Booster of Customer Lifetime Value
About Aroundhome
As part of the NuCom Group, and thus of ProSiebenSat. 1, Aroundhome is Europe’s largest and most successful recommendation platform for large projects around the house.
In order to investigate exactly how partner satisfaction and Customer Lifetime Value can be increased, Aroundhome relies on the “Custom” solution of the integrated Experience Management platform zenloop. Since 2018, the Berlin-based company has been using email embed to collect NPS feedback at three touchpoints. The analysis is focused primarily on the identification of influencing factors on partner satisfaction, and also on deriving decisive action measures for the service department. The aim is to sustainably improve partner relationships and to increase partner loyalty.
The Challenge
Aroundhome has more than 16,000 certified craft enterprises of various trades and sizes among its partners throughout Europe. As different as these business partners are, so are their individual needs. These should be understood and used to tailor a service adapted to their wishes, which makes the ties to these partners closer.
To achieve this and increase Customer Lifetime Value requires a software solution that not only offers an inventory but also comprehensive analysis options in order to derive and take action.
The Solution
Aroundhome uses the NPS query via email embed to evaluate partner satisfaction over time, Customer Lifetime Value, and retention factors. Partner companies are interviewed at the 4-week and 3-month stage of their relationship with Aroundhome. Furthermore, the Berlin-based company analyzes the satisfaction of the partners after each interaction with the service department – also by means of email embeds.
The zenloop Customer Success Team also supports Aroundhome in its strategic consulting for optimizing and expanding NPS measures.
“With zenloop, we can determine the satisfaction of our partners and the reasons for it. We use this information to continuously improve our product and service.”
The Result
After classifying the customers according to the NPS logic into the three groups of detractors (dissatisfied customers), passives (neutral customers), and promoters (satisfied customers), Aroundhome was able to use the NPS as a clear retention indicator:
- Compared to detractors, Promoters and Passives are more than 2.5 times more likely to extend their contract after the first four months.
- Additionally, they have a 24 percent higher Customer Lifetime Value.
A detailed examination of the reasons showed that Promoters are much more likely to rely on the support of the service department and the flexible contract offers of Aroundhome. This has a positive effect on the duration of the contract as well as on the satisfaction of the partners in general.
In order to drive change and further increase the effect, during both partner onboarding and when in contact with the service department, the flexible contractual conditions and other services offered are pointed out. This influences customer retention in a positive sense and enables further growth for Aroundhome.
In the future, Aroundhome will work intensively with zenloop on the effectiveness of the processes that have been changed and will create further measures to increase customer loyalty and satisfaction.
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