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Apple Inc.s Net Promoter Score System: Pros and Cons
Introduction
A service system is an integrated technology with the companys network, which help in attaining the need and requirements of the clients. It ensures that customers are satisfied with the organizations products and services. Apple Inc. uses the Net Promoter Score system (NPS System), which has enabled the company to respond appropriately to its clients desires and needs for years. It is among the first companies to introduce the NPS system. The system integrates word of mouth as a metric that affects customer loyalty since it is based on the clients attitude. Word of mouth about the service offered by the company is essential in promoting or demoting the company as it affects the clients behavior.
NPS Systems Strengths
Promotes clients retention through loyalty and satisfaction
The service system enables Apple Inc. to retain clients through loyalty and satisfaction ( Apple NPS in 2021 , 2022). The system provides the company with data that portrays their clients satisfaction level with the Apple brand, customer support, products, and services. The company is able to know the experience of their clients through feedback that they provide on various areas of interaction. For example, through surveys, Apple Inc can use this system to identify recent experience the clients recent experiences with the organization on certain brands. The surveys enable the organization to identify issues that need improvement to increase the clients experience, enhancing customer retention and loyalty.
Forecasts clients loyalty and business growth
NPS system enables Apple Inc. to predict customer loyalty and business growth. The system provides information on the likelihood of a clients recommendation, which is crucial in estimating the companys growth. This knowledge is helpful for Apple as it enables it to market and sells its products to clients that are satisfied and happy with them ( Apple NPS in 2021 , 2022). For example, the system enables Apple Store managers to identify critics of Apple in a short time, like 24 hours, making the company close the cycle quickly. The company uses the data collected by the system to meet dissatisfied clients. Prediction in manufacturing and service delivery has a critical role in evaluating the companys short-term and long-term performance.
Provides quick and straightforward feedback
NPS system provides quick and straightforward feedback, which is retrieved from both the clients and employees in the shortest time possible. This enables Apple Inc to improve its service delivery as quickly as possible. The company does not have to spend years identifying problems with its quality of service delivery ( Apple NPS in 2021 , 2022). This is done through a post-purchase survey, which enables the company to gather information on customer purchasing experience using the NPS score. This is used in various sales or service delivery points such as placing orders, business activities with the Apple Inc. brand, and making purchases. A customer support survey is also used after the client completes a transaction with Apple. This provides an immediate response to the quality of the services offered to the client, providing room for quick adjustments and improvements.
Easy to use and provides a comparison
NPS system is easy to use and compares the companys performance with others in the same industry. Apple Inc. can compare its services with its competitors, such as Microsoft in the software industry and Samsung in the hardware industry. This gives the company valuable insights into promoting its service delivery and product in various areas. Comparability enables the company to be aware of the external business environment and its stability ( Apple NPS in 2021 , 2022). Awareness of ones rivals is crucial as it promotes development and improvements to the companys brand image. Apple Inc.s large NPS score gives the company significant pressure to keep the lead while improving quality service delivery in areas that require improvement.
NPS Systems Weaknesses
Measures customers loyalty and not acquisition
The system measures customers loyalty and not acquisition. This provides Apple company with information about their current client and not those that quit their product and non-customers ( Net Promoter Score (NPS), 2022). These groups have critical information that may be useful in promoting the quality of products and services offered by Apple Company. Making information based on existing clients only can be misleading. There is a need for Apple company to acquire new clients in the technology industry. This is because various clients need more information on their service delivery to join the Apple Inc. community. Identifying and reaching these clients becomes a problem because of the use of the NPS service system.
Does not provide information on passive clients
The NPS system does not provide information on passive clients. It focuses much on promoters and detractors, leaving out passive clients who may defect to the product when an opportunity arises. These clients are usually neutral on the service performance of Apple company as they do not spread positive information on the service delivery or give out negative information regarding the product ( Net Promoter Score (NPS), 2022). They are usually open to alternatives as they can stop using Apple products and services whenever an alternative brand is available. The company has to respond to their needs, but the NPS system does not provide critical information about this group that will help the organization to earn their recommendation.
Depends on other tools for accuracy
It requires other tools, such as surveys, to provide critical information on customer loyalty. Depending on NPS blindly is problematic as it is challenging to understand the clients feelings completely. This system needs surveys to provide feedback on the quality of services being offered by the company to fill the gaps in the various experiences of the clients that have not been captured by the NPS system ( Net Promoter Score (NPS), 2022). This makes the NPS system over-reliance on other tools to provide accurate feedback. For instance, Apple Inc. may find it difficult to identify why specific clients gave them a positive rating as NPS does not offer customers a chance to explain.
NPS System Industry Comparison
A company such as Microsoft is a great competitor to Apple in the software industry. It also uses the NPS system to ensure that it can satisfy the requirements of its clients ( Microsoft Net Promoter Score, 2022). This is significant competition for Apple as both companies deliver quality services that Both companies utilize the systems strengths in promoting product and service delivery. However, Apples net promoter score is higher than Microsofts, implying that the system is more productive in Apple than in Microsoft. Week 6 supply chain will use the net promoter score system to meet clients needs and requirements.
Conclusion
The NPS system is critical for Apple Inc.s performance. Its strength enables the organization to achieve its goals and targets. First, it has a vital role in customer retention through loyalty and customer satisfaction. Second, it allows Apple Company to predict growth and customer loyalty. Third, the system has straightforward feedback that provides room for quick improvements. Lastly, the system is flexible and easy to use, allowing for the companys service comparison. However, it has several weaknesses, such as the inability to measure acquisition and provide information on passive clients. Additionally, it requires other tools for its effective performance. Other companies, such as Microsoft, also utilize NPS to ensure they satisfy their clients despite having a low NPS score compared to Apple.
References
Apple NPS in 2021. (2022). Trustmary. Web.
Microsoft Net Promoter Score 2022 Benchmarks. (2022). Customer. Web.
Net Promoter Score (NPS). Advantages and disadvantages. (2022). Customer Champions. Web.
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