A strong product and attentive, respectful service can overcome negative market trends. But if the market is unstable and the UX (user experience) leaves much to be desired, then increasing the NPS (customer loyalty index) will be extremely difficult.
It is not enough to simply sell what people need — you also need to create an original and high-quality UX. The world-famous McDonald's chain has not yet managed to cope with this task. In the US, it has a negative customer satisfaction rate of -8 points. While their main competitor KFC has a positive NPS of 14 points (this is also not much, but still better than McDonald's). Among American fast food chains, Pizza Hut is the most successful with its 78 NPS points.
Brand awareness
A high NPS is great, but loyalty sri lanka email list is of little use if it doesn’t translate into financial performance. A case in point is Lyft and Uber, two very similar brands that often employ the same drivers. Despite all the similarities, however, Lyft has an NPS of 9, while its competitor has 37.
What is the secret? In the huge recognition of Uber, which is constantly mentioned in the media. In addition, Uber operates in many countries around the world, and Lyft - exclusively in the United States. The geography of activity and recognition also affect the NPS index.
A product that advertises itself
In the United States, the insurance market is very developed. Insurance companies fight for customers to the death. Satisfied, loyal consumers are the future profit of the enterprise. Those who expected to quickly hit the jackpot and did not think about the future lose their positions in the NPS rating.
For example, this happened to CIGNA, a life insurance company: its NPS index is currently negative (-1 point). This brand was at the center of a scandal: after the company refused to recognize one of its clients as disabled in 2009, it came under close government scrutiny.
At the same time, another insurance brand, GoMedigap, has a record loyalty score of 93. Thus, NPS does not depend on the industry, but on how the company fulfills its obligations.
Ignoring feedback
The worst among American airlines is United, which scored only 10 NPS points in 2014. This is an anti-record. Its competitors have this indicator of 62 (Southwest), 48 (Virgin America) and 56 points (JetBlue).
Ignoring feedback
United customers have been unhappy for years with constant flight delays and cancellations, bad food, poorly maintained planes, and constant baggage delivery issues. In 2021, the airline received nearly half (43%) of all complaints about aviation. Of course, United tracks NPS, as do other players in the market, but the differences are stark.
The company collects feedback but does not respond to it (or responds insufficiently). The effectiveness of NPS campaigns is determined by whether the brand manages to close the feedback loop. If so, customer loyalty grows and the brand has a chance to become an industry leader.