Adopting customer satisfaction metrics can help advisers gauge the quality of service they offer their clients, according to the head of client experience at Foster Denovo.
Paula Brazier said the national financial advice firm uses two metrics to gauge consumer attitudes to their services. The first, the net promoter score (NPS), uses an index, ranging from minus 100 to 100, to measure how likely clients are to recommend a company to friends or colleagues.
All customer scores for the service received are marked out of 10 and fall into three groups: promoters (for scores of nine and 10); passives (scores of 7 or 8) and detractors (for scores between zero and six). The company's official NPS score is generated by subtracting detractors from promoters.
Ms Brazier said: "A score of plus 50 is deemed as being world class when it comes to a NPS. To put this into context, many banks would fall into the minus category.”
"When I became aware of NPS, I thought it was an excellent way of establishing client feedback and something that should be placed at the heart of assessing our own client experience within Foster Denovo.
“We pay close attention to the feedback, and work hard to continue to improve our service and our scores."
The second metric is the customer effort score (CES), which it designed to gauge the effort it took to complete an action, transaction or process.
Traditionally, customers are posed a single question: How much effort did you personally have to put forth to handle your request? and answers range from 1 (low effort) to 5 (high effort).
However, as of 2013, a statement has been offered as an option: The organisation made it easy for me to handle my issue.
Ms Brazier said: "The business really embraced NPS and we now embed it in almost all of our client touch points. But I felt it important to know not only if a client would recommend us, but whether they found the experience of dealing with us easy.
“We can confidently say that 84 per cent of people surveyed stated that they found their experience with us effortless.”
Guy Myles, chief executive at Windsor-based Flying Colours, said: “We are still in the launch phase of our business, so much of our efforts have been focused on growing and developing our proposition. We are yet to adopt the use of customer satisfaction metrics like NPS but we will definitely aim to do so as we become more established – I am huge believer of their effectiveness. It help advisers firms the likelihood of referrals and thus organic growth.”
He added: “We currently measure consumer satisfaction by getting our clients to complete a review. We do not do this as soon as advice is given. Rather, we wait until a few months down the line from them because we that it provides a more accurate guide to customer sentiment over the long term.”