Why NPS is the Key Metric for Cardinal Health’s Customer Experience
Cardinal Health, a Fortune 500 healthcare services company, has been using the Net Promoter Score (NPS) as its primary metric to measure customer loyalty and satisfaction. NPS, which is based on a simple question – “how likely are you to recommend our company to a friend or colleague?” – has become the gold standard in customer experience measurement, and for good reason.
NPS provides a clear picture of a company’s overall performance by capturing customer perceptions based on their interactions with the company. It is a powerful tool that can help companies like Cardinal Health improve their customer experience, differentiate themselves from competitors, and drive sustained growth.
Understanding NPS
NPS is a customer loyalty metric that measures the likelihood of customers recommending a company’s products or services to others. It is calculated by subtracting the percentage of detractors (customers who rated the company between 0-6 on a scale of 0-10) from the percentage of promoters (customers who rated the company between 9-10). The resulting score can range from -100 to 100.
What makes NPS unique is its simplicity – it is easy to understand and implement, making it a popular choice for companies of all sizes and industries. It also provides companies with actionable insights to identify areas for improvement and measure progress over time.
Why Cardinal Health Uses NPS
Cardinal Health has a strong focus on customer experience and has been using NPS as its key metric since 2014. The company believes that NPS provides a comprehensive view of customer satisfaction, loyalty, and advocacy, which are critical for success in the highly competitive healthcare industry.
By using NPS, Cardinal Health has been able to gather valuable customer feedback, improve customer service, and enhance the overall customer experience. It has also enabled the company to align its goals and priorities with the needs and expectations of its customers.
The Benefits of Using NPS
Using NPS as the key metric for customer experience measurement offers a range of benefits to companies like Cardinal Health. Some of the key benefits are:
1. Customer-focused: NPS puts the focus on the customer, providing insights into how they perceive the company and its products or services. This helps companies understand customer needs and expectations and identify areas for improvement.
2. Easy to understand: NPS is a simple metric that can be easily understood by both internal stakeholders and customers.
3. Actionable insights: NPS provides actionable insights that companies can use to improve the customer experience and drive business growth.
4. Benchmarking: NPS allows companies to benchmark their performance against industry standards and competitors, which helps in setting realistic goals and objectives.
Conclusion
In today’s highly competitive marketplace, customer experience is more important than ever. With NPS as its key metric, Cardinal Health has been able to improve customer service, enhance customer experience, and drive sustained growth. Companies across industries can benefit from using NPS as a tool to measure and improve their customer experience, ultimately leading to greater customer loyalty and business success.
