October 04, 2019 15:29 CET

Creating Customer Loyalty

Customer Loyalty means success

Here at Tele2 IoT it’s important that we have good processes, systems that work, and the right staff. But it’s equally important that our customers are happy. We’ve been measuring customer experience for more than a year now and we’ve got some great news: we’re nailing it when it comes to making our customers happy – and making customers happy means profitability and growth for everyone.

Did you know that 70% of our customer contacts have at some point recommended Tele2 IoT to others? They have recommended us for a number of reasons. They say it’s easy to get started, we have high quality products and services, and great customer support. They also say that their loyalty is, in part, based on the competence of our sales team and our ability to be a passionate business partner. This doesn’t surprise us too much, considering how much effort we put into customer relations.

A loyal customer has a longer customer lifetime, a larger share of wallet, and is an early adopter of new products and services. On the other hand, dissatisfied customers can have a negative effect through poor reviews and seeking better service elsewhere.

We’ve been working with MarketDirection, the leading supplier of the NPS (Net Promoter Score) customer experience program in the Nordics, for more than a year. Using NPS, MarketDirection has been assisting us in measuring customer loyalty by asking, among other things: “How likely is it that you would recommend Tele2 IoT to a colleague or contact?” Respondents give a rating to this and 14 other questions: 0 is not likely at all and 10 is extremely likely. Depending on their response, they fall into one of 3 categories:

Promoter: Gives a score of 9 or 10 and is typically loyal and enthusiastic

Passive: Responds with a 7 or 8 and is satisfied but not happy enough to sing our praises

Detractor: Gives a rating of between 0 and 6 and is not happy, is unlikely to buy from us again – and may even discourage others from buying from us.

Surveying our customers twice yearly has helped us establish and maintain better relationships with our customers, with their feedback at the heart of our process optimization.

From open text answers we have gained a better understanding of what our customers like and what they want us to improve. Improving means not only identifying which values mean the most to our customers but also understanding what and where in our processes we are going wrong. We are also able to identify customers who are dissatisfied at an early stage and take action.

The open-text questions in particular are of great value to us and we give a lot of attention to every answer. In fact, we dedicate a lot of time and resources to making an in-depth analysis of the responses together with our partners MarketDirection. After compiling the results, we establish an action plan that is designed to tackle issues highlighted by the results, and we make sure our customers are informed about the results and resulting actions to ensure transparency.

So, yes, we’re very happy to hear that 70% of our customers have recommended us to others – but we’re determined to push that number higher. We want customers who are not just satisfied with us, but who feel like we are real partners in helping them reach their business goals.