Are you seeing a gap between your Net Promoter Score (NPS) and your actual business performance? You’re not alone. Increasingly, organizations are discovering that their NPS indices are not reliable indicators of whether their customers will actually renew their contracts. An increasing number of professionals are recognizing that the core question of the NPS index is flawed. That’s an alarming statement.
Think about this: companies with powerful brand recognition and/or few competitors can expect to be in every customer’s consideration set – regardless of how those customers perceive the company or judge its performance. So, asking the likelihood that those customers would recommend your highly recognized brand reveals more about how consumers value familiarity than actual customer sentiment. An enormous disparity may exist between the resulting NPS and actual dissatisfaction levels that would be uncovered at a more granular level.
Recognizing this, STAMP created the STAMP Score, a score between 1 and 100 that tells you the likelihood you will retain your customer. The STAMP Score serves as the “FICO” score for Customer Retention – the higher the score, the more likely you will retain your customer. The STAMP score is an algorithm based on the tens of thousands of customers we have STAMPed on behalf of our clients.
The score takes in to consideration the gap between how a company is delivering on the unique business needs and drivers that are most important to each and every one of their clients, and places more weight on those needs or drivers that are most important. It also factors in other key sentiment factors like overall satisfaction and ease of doing business. And finally, it does account for the Likely To Recommend score that contributes to the NPS, but this only accounts for one portion of the total score.
Using the STAMP score, you can quickly tell if you are going to retain the account. Here is breakdown:
STAMP Score:
80-100 – You have a very high likelihood of retaining your client
60-79 – You have several issues you must address if you hope to retain your client
Less than 60 – You likely will lose you client unless you do something significant
The beauty of the STAMP Score is it also aggregates like the rest of the STAMP dashboards, so you can see a STAMP score by Account Manager to quickly tell if the Account Manager is likely to retain their book of business. You can also view the STAMP Score by segment (e.g. geography, size, etc.), to see if certain segments are at more risk of churn than others.
Finally, you can export this single score in to your Sales Automation tool (e.g. Salesforce) as the single most important indicator of retention.
So, want to know if you are going to retain your most important clients? Start paying attention to the newly released STAMP score!
Interested in learning more about STAMP and the new STAMP Score? Send us an email at info@stampcsm.com or give us a call: 312-397-1111