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Measuring Customer Satisfaction from Data: Customer Lifetime Value and NPS

According to a study by Price Waterhouse Coopers, 32 percent of customers will stop using a brand or product after a bad experience (PWC, 2018). This number clearly shows that customer experience, customer satisfaction and customer loyalty are more important than ever. Customer experience encompasses all the experiences that a customer has with a brand before, during and after the purchase and thus forms the overall impression of a customer. In order to be successful in the long term, companies have to offer a unique, personal and positive customer experience across all touchpoints along the customer journey. Because this not only increases customer satisfaction and loyalty, but also has a positive effect on customer lifetime value and thus increases the monetary value of the individual customer.


“Data is the new oil”

Various surveys show that customers are becoming more and more demanding and place increasing demands on retailers. It is no longer enough to offer a technically perfect product and shopping experience as well as a good price-performance ratio. Instead, the personalization of their shopping experience plays an increasingly important role for customers, so that they are not only satisfied but also remain in the shop of their trust as regular customers with a high customer lifetime value. Today's online shops therefore need a well-planned, personalized marketing strategy based on personal data.

A study by ActiveTrail shows the high relevance of marketing personalization: 52 percent of all customers continue their product search on other platforms if the corresponding advertising emails are not personalized. There is no incentive to visit this page directly rather than to  simply consult a search service provider.

In return, consumers are also largely willing to provide personal data in exchange for personalized offers and discounts. 57 percent of surveyed consumers said so. Around 52 percent share their personal data for better product recommendations that meet their needs and for personalized shopping experiences. Almost two-thirds (62 percent) of all consumers surveyed also said that it was acceptable for companies to send personalized offers/discounts based on items they had already bought. That is why it is particularly important to optimize the customer experience and thus to respond individually to customer needs so that everyone feels valued and heard.

So that this can be done securely and in a targeted manner, it is recommended in addition to the classic company data – for example, fulfillment, time-on-site, website performance – to include data on customer satisfaction, customer loyalty and the customer journey into the structured data analysis. This gives companies a holistic view of customer behavior and, with a sharpened personalization strategy, they can not only create customized offers for each customer, but also know exactly where their strengths lie in the customer journey and where there is still room for improvement. The Net Promoter System, for example, is an instrument that is suitable for gaining this knowledge about customer satisfaction.


Personalization with the Net Promoter System (NPS)

The Net Promoter System is more than "just" a key figure. While the Net Promoter Score reflects quantitative feedback in the form of submitted scores, the Net Promoter System also evaluates qualitative features. This works by expanding the pure score with an additional statement related to the evaluation using free text. This customer feedback is then evaluated with semantic text analysis and sentiment analysis on a label and keyword basis. NPS feedback can be obtained at every touchpoint of the customer journey. This enables companies not only to gain insights into specific touchpoints, but also win over the respective motivations of their customers and derive measures adapted to their specific feedback - so-called closing-the-loop measures - for their recovery and retention.

Various personalization measures can already be applied when collecting the NPS feedback. For example, the NPS question, the subject of the question, the comment and thank-you page or the link on the thank-you page can be individually adapted to the preferences and personal data of the respondent. This puts the focus on the individual customer and increases their loyalty to the company.

As a result, customer satisfaction increases and with it the likelihood of repeat purchases and recommendations to friends and family. The increased customer loyalty increases the customer lifetime value. The recommendation also makes it easier to acquire new customers.

The NPS also shows that strong customer loyalty is only possible with the establishment of a personal relationship with the customer. For example, recipients of personalized email campaigns gain additional trust in companies. The knowledge gained from the NPS enriches the existing knowledge about the respective customer in CRM, so that marketing measures and strategies can be adapted even more to the individual needs of the customer.



By evaluating customer feedback at various touchpoints, shops can not only specifically identify weaknesses in their customer journey and initiate measures to eliminate them, but they can also use this, in combination with other personal data, for personalized marketing. In addition to customer satisfaction, this also increases the conversion rate and customer lifetime value and contributes to the long-term success of the company.


You also want a holistic view of your customers? minubo helps you with your structured data analysis. Register now for the webinar and learn everything in the Product Tour.

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This is a guest contribution by zenloop GmbH. If you want to learn more about the company and the Net Promoter Score, please visit the website.

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