Emotional Response Enables Better Customer Retention: How to Go Deeper with your CX Metrics

3 out of 5 of NPS® “Detractors” Actually Report an Efficiently Addressable Emotional State.


Consumer experience and research departments are often tasked with developing a set of metrics to measure individual-level customer experience – metrics used to drive closed feedback-loop response systems aimed at customer retention and increasing customer lifetime value.

It is common for companies to use single-number metrics like Net Promoter® ratings since they are simple to communicate and easily benchmarked. However, understanding the emotions that drive consumer experience ratings can have a significant impact on customer retention efforts.

Emotion-based responses yield higher quality data and greater depth of insight in combination with single-number metrics like NPS scoring – leading to more efficient and actionable outcomes than ratings alone.


BUSINESS CHALLENGE

Morphii® recently tested an emotional response model alongside NPS as part of the customer feedback program for a major telecom provider. During the testing period, the traditional NPS groupings defined 30% of surveyed customers as “Detractors.”

Concerned about this, they asked:

  1. Can we address detractors?
  2. If so, how do we identify those individuals who are most efficiently addressed?

This study engaged current customers and asked the standard Net Promoter likelihood of recommendation question and 4 questions using Morphii Technology. For the Morphii based questions, respondents selected both the type and intensity of their feelings. Morphii provided a more nuanced method for customers to communicate their experiences in real-time – lending to a higher rate of actionable feedback.


MORPHII POWERED RESULTS

Using the Customer Experience Morphii Insights Model (CX MIM), “Promoters,” “Detractors,” and “Passive” groups were reclassified according to their emotional responses on the Morphii-based questions. The resulting CX MIM categories provided more efficient, leverageable insights for taking action.

NPS Ratings by Percentage of CX MIM Category

Through this reclassification, the telecom provider discovered that 61% of so-called “Detractors” actually fell into efficiently addressable CX MIM categories of Passive Negative and Neutral. As shown by the descriptions below, these newly classified “Detractors” expressed emotions that are really only disengaged/neutral or mildly negative—but not actively negative or damaging to the brand.

Neutral CX MIM Category: A) Did not convey a strong feeling about the brand, recent experience with the brand, or alternatives, OR B) Had a low level of intensity and variation among feelings, both positive and negative, that negated any action or engagement.

Passive Negative CX MIM Category: Had an addressable feeling type and intensity in association with brand connection and/or recent experience, and a low intensity feeling, positive or negative, toward alternatives in the market.

Even customers who selected ratings of “0” or “1” have efficiently addressable emotions!

“Detractor” NPS Ratings by Percentage of CX MIM Category

Targeting the 61% of detractors with neutral or passively negative emotions offers the greatest efficiency for improving customer brand experience and represent a premier opportunity for growing and retaining revenue.


BUSINESS OPPORTUNITY

With added emotional content, the telecom provider was better informed to personalize retention efforts. Rather than using one generic response for all “Detractors,” the company was acquainted with more nuanced response loops for “Passive Negative” consumers – mitigating negative recent experiences and reducing the risk of more active negativity in the future.

If your current rating system and insights tools are leaving you feeling disengaged from your customers and constrained in your ability to efficiently build solutions, take action with Morphii.

What’s next? A recent study indicates that Morphii can even outperform current ratings methodologies as a stand-alone, single-question response measurement.


Net Promoter, Net Promoter System, Net Promoter Score, NPS and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.