The new “The State of CX Report“ Bain and InMoment brings valuable data, information, and insights from a large array of industries such as telco, media, social media, retail, marketplace, grocery, financial services, insurance, airlines, hotels, automotive, restaurant/Café, Energy & Water. The purpose of the study was to identify NPS leaders in each sector, but also innovation and channel experience leaders. Final data covers 32,922 respondents across 14 industries and 199 UK brands
On Average, UK Brands have an average NPS of +13, with Volvo leading at +55./ At a brand level, the average NPS is +13, which is a slight increase from +10 in 2019. However, compared to the 2019 study, the leading brand’s score has dropped significantly. In 2019, the top brand had an NPS of +70, whereas in the current study, Volvo leads with an NPS of +55, showing a decline in the overall leader score. The drivers of Net Promoter Score (NPS) illustrated in the report help brand and organizations understand what factors contribute to customer loyalty.
Product Quality’ and ‘Innovation’ are the most important drivers of loyalty, closely followed by ‘Value’ and ‘Ease of Getting Help’/ The success of brand leaders can be attributed to their ability to align their brand promises with the experiences they deliver to customers. Brands that successfully align their promises with their actions can build strong connections with customers and differentiate themselves in the market.
Luxury automotive brands, including Volvo, hold most of the top spots in terms of NPS. Volvo has improved by 6 points since 2019. Retailers and grocers also have multiple brands in the top 20 rankings. In the mid-pack, there are brands that do not stand out significantly from their competitors and are neither leaders nor laggards in their respective industries. This category includes well-known high-street brands such as Starbucks, Vodafone, Fiat, Sainsbury’s, Holiday Inn, and H&M. Laggard brands are primarily concentrated in the energy supplier, water services, and financial services sectors. These industries have a high impact on respondents’ cost of living and tend to have lower NPS scores.
NPS Segments by Industry. Financial Services- The Most Polarized
Financial Services is a particularly polarised industry, with fewer passives than other mid-table industries. The financial services industry stands out with fewer passives compared to other industries, indicating more polarised views. This could be due to the diverse range of financial products and services offered by different companies, leading to varying customer experiences and opinions. Some customers may have positive experiences, leading them to become promoters, while others may have negative experiences, becoming detractors. This polarisation may stem from factors such as the specific services used, the effectiveness of customer service, and the overall performance of the financial institution.
Automotive really stands out in terms of the number of promoters. The high percentage of promoters in the automotive industry can be attributed to several factors. First, automotive companies often invest heavily in product quality, innovation, and value, which resonates positively with customers. Consumers in this industry may also have more choices and options to suit their preferences, leading to a more positive overall experience. Additionally, the purchase of an automobile is usually considered a significant and discretionary expense, which means customers are more likely to share positive feedback when they are satisfied with their purchase.
On the other hand, utility providers, particularly in the electricity and gas sectors, have a lower percentage of promoters. This is likely due to consumers having limited choices when it comes to selecting a utility provider, making it more difficult for them to switch to a more satisfying option if they are dissatisfied. Additionally, with the recent price increases in these sectors, consumers may be experiencing financial strain, leading to lower overall satisfaction and NPS scores. The essential nature of these services also means that customers may have higher expectations for quality, customer service, and environmental responsibility, which utility providers may struggle to meet. They also had very low scores around quality, innovation and being socially and environmentally responsible. In fact, a lot of the respondents spoke about environmental issues being top of mind but also customer service levels being important. The financial services industry stands out with fewer passives compared to other industries, indicating more polarised views. This could be due to the diverse range of financial products and services offered by different companies, leading to varying customer experiences and opinions. Some customers may have positive experiences, leading them to become promoters, while others may have negative experiences, becoming detractors. This polarisation may stem from factors such as the specific services used, the effectiveness of customer service, and the overall performance of the financial institution. Social media is very different, with feedback around the quality of the apps, but also the toxic and addictive environment social media can create. Industries like hotels, insurance marketplaces, and cafes/restaurants have a higher percentage of passives. This suggests that customers in these industries have an okay or good experience but may not be particularly impressed or delighted. These industries have an opportunity to convert passives into promoters by offering unique, wow experiences that stand out from competitors and leave a lasting positive impression on customers.
Leaders and Laggards Are Not Necessarily the Biggest Players in Terms of Market Share
In terms of the range of NPS scores across industries, it’s interesting to note that the leaders and laggards are not necessarily the biggest players in terms of market share. There can be over a 100-point difference between the leader and laggard brands. Industries with a high range of scores indicate that different brands offer very different experiences to customers. This can be influenced by the unique propositions each brand brings to the market. In each category, there are notable leaders who excel in delivering unique product offerings and customer experiences.
Within automotive and retail industries for instance respondents score highest for product quality, innovation and value. For example, Aldi is a fast-growing brand in the grocery industry that focuses on a low-cost/ budget proposition, setting them apart from more traditional grocers like Sainsbury’s or Asda. In the telecommunications industry, Tesco Mobile leads and has received awards for its customer service. Starling Bank, a mobile-first bank, stands out in the financial services industry with its focus on digital innovation, transparency, and proactive communications through their app. NFU Mutual is an award-winning brand focused on positive improvements for their members in rural communities and the environment. Different media brands also provide diverse experiences. Spotify is mentioned for its wide range of content and choice, while Apple is perceived as expensive and catering to a specific segment of consumers with Apple devices. On the other hand, industries like cafes/restaurants and insurance tend to provide a more consistent customer experience, resulting in a smaller range of scores. Overall, there is significant variation in NPS scores across different industries, highlighting the diverse experiences customers have with various brands.
Key Drivers of Net Promoter Score (NPS)
The drivers of Net Promoter Score (NPS) help us understand what factors contribute to customer loyalty. The main drivers of NPS, as revealed by the data, are product quality and great value. This is not surprising, especially during times of economic turbulence when customers are seeking to make their money go further. Consumers prioritize brands that offer high-quality products and good value for their money. Another interesting finding is the importance of making it easy to get help, which is the third most important driver of NPS. During challenging times, customers appreciate brands that provide assistance and support when needed. Lastly, innovation is identified as a relatively important driver of NPS. This suggests that customers are still intrigued and engaged by brands that demonstrate an ability to deliver new and innovative solutions.
What Differentiate the Great Brands in terms of CX?
The brands with an NPS over 40 are often growing faster, gaining more market share, and making waves in the industry. Examples like Aldi and Starling demonstrate their ability to innovate and deliver great experiences.
While certain categories may perform well overall, there is often only one brand within that category that stands out as the leader. For example, in the automotive industry, although it leads in four out of the eight drivers, only one auto brand tops the chart. This indicates that brands within a category can have varying levels of success in delivering exceptional experience.
The success of brand leaders like Aldi, John Lewis, and Tesla can be attributed to their ability to align their brand promises with the experiences they deliver to customers. Aldi’s focus on great value resonates with customers, especially during challenging times when they can rely on the brand to provide high-quality products at affordable prices. John Lewis stands out with its emphasis on partnership and exceptional service, which creates a strong emotional connection with customers. The reaction and loyalty towards John Lewis, despite discussions about changes in its partnership model, highlight the significance of the brand’s people-centric approach.
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