Benchmarking NPS is essential for banks and financial institutions for two main reasons. These two reasons are customer loyalty and satisfaction with respect to others. In simple terms, it helps you compare your organization to others, making it easier for you to understand where exactly you need changes and improvements to make yourself better.
Now, since NPS is a metric that not only banks but financial institutions also use, benchmarking should be done within your category only like Banking, Neo Banking, BNPL, etc. So here are the steps to follow to benchmark the NPS score for your organization.
Five Steps to Benchmark NPS in Banking and Finance Services
1. Know your competitors
As you learned above, you must only consider your industry, which is banking and finance. But there is a step further to go. You should also understand who you are and your competitors. Let's say you are a full-fledged bank with all the services that a bank offers. So, you can't compare yourself with anyone other than banks. For example, there are no banks nowadays operating online or a BNPL financial institution.
Why not compare yourself with them? The answer is simple: their target audience is either totally different or just a tiny subset of your audience. In the case of a neo-bank, they target a younger audience base. That's only some percentage of the audience you're targeting as a full-fledged bank.
2. Gather the NPS Data
Now, you will need to collect the NPS data of your organization and your competitors as well. First, get your NPS with NPS surveys and then turn to collect the net promoter score of your competitors.
However, since competitors will not provide you with their data, you'll have to use sources like industry reports, publicly available data, and other sources.
3. Compare the NPS Score
Once you are done with the above process of gathering and finding your NPS data, it's time to compare it with your competitors. Here, the approach should be to find your position in your market.
4. Identify the Areas Where You're Lacking
Now, work on finding the areas where you need to improve. You shouldn't look at the competitors' weak points as it doesn't benefit you. However, if you do look at the competitors' weak points, you can take them as future references as to what not to do. Otherwise, keep your focus on identifying your mistakes.
5. Improve and Repeat
As you learn about the areas where you need to implement changes, find the ways to do that. Try to devise a permanent solution rather than one that results in a temporary improvement. Now, whatever you come up with, communicate it with the concerned party of your organization.
If the changes have to be done in the operations, transit the changes and their implementation to the operations team. Lastly, repeat the process to keep finding out your success rate from the last one and find new spaces for improvement, as it's not a single-time process.
How can Banks achieve High NPS Scores?
Now, while the above process is to benchmark the NPS, some ways will help you get a high net promoter score.
● Be Customer Centric
Every business knows the importance of being customer-centric and wants to be one. But the implementation sometimes isn't that effective, making you look like a non-customer-centric business. However, the best way to be a customer-centric brand is to enhance personalization and make your services effortless to opt for.
● Work on Digital Banking
To be relevant to everyone, you must be suitable for everyone. On one side, where the youth is obsessed with digital banking, the elderly still need to know how convenient it can be for them. So, you not only have to make your digital banking smooth and secure but also work to inform everyone about it.
● Enhance Customer Service Experience
Constructing a flawless system is still hard to achieve so that problems can occur. But the resolution of the problem in your Banking or financial organization should be as excellent as it is possible. You must have multi-channel customer support, which should be easy to navigate. Also, customer service executives play an important role, so their regular training is essential too.
Key Trends in Banking and Financial Institutions
There are some trends that are going on in the banking and finance industry. Knowing them and working on them is crucial as otherwise, you may be left behind in the race.
● Artificial Intelligence
AI has already debuted in almost every industry. There are various points to implement AI in your banking and finance organization. For now, customer support is the best way to implement AI, but there's no limit, and it's up to you.
● Digitalization
As technology is evolving, people are expecting that they should not need to visit their bank branches even once in their lives. So, for banks, it's a point where they invest a lot to achieve what their customers want.
● Personalized Experience
It is something every industry is working on. Banks and financial institutions are trying their best to provide personalized experiences to their customers with the help of data.
Wrap-Up
To sum up, NPS and benchmarking NPS are crucial, and doing it the right way is equally crucial. The work requires expert knowledge, but you don't have to worry about it. We at QDegrees have everything that a customer-centric brand needs.
Our SurveyCXM will help you get a real-time NPS score and also allow you to measure your customer loyalty. It is a one-stop solution to all your NPS needs. So, contact us today to learn more about our SurveyCXM.