It doesn’t matter what approach you take, whether it be an Inbound or Account-Based Marketing (ABM) strategy or a combination of both, NPS can work with your strategy.
What is NPS?
NPS stands for Net-Promoter Score. It’s a powerful metric that your business can use to gauge customer satisfaction. Done correctly, it can tell you a lot more than just what your existing customers think about your business.
How NPS works
NPS works by producing a scale that measures the willingness of your customers to recommend your services to other potential customers. This is typically done by completing a survey. In the consumer world, where there are typically a lot more customers to deal with, these are usually handled as email or online surveys. In the B2B world, telephone surveys are most common as it allows you to build genuine rapport with your customers. For more information around B2B surveys and NPS, check out our page on it here.
Depending on the responses you get from a survey, the customers are then categorised into the following:
- Promoters – this is a loyal customer who scores between 9 and 10 on the survey and will continue buying and give referrals to others.
- Passives – a customer who is satisfied but not overly enthusiastic and has scored between 7 and 8. These clients are susceptible to competitive offers from other suppliers.
- Detractors – unhappy customers that score between 0 and 6. These are customers who can damage your brand and reputation.
If you take the percentage of Detractors away from the percentage of Promoters, this will give you the Net Promoter Score. NPS is typically presented as a percentage and converted into a gauge similar to the image below.
This gauge usual starts at -100 and ends at 100. Scores below 0 need improvement. Scores between 0-30 are considered Good. 30-70 is considered great, and 70-100 is seen as excellent / industry-leading.
What NPS can do for you
One of the biggest selling points for NPS is that it allows you to break down the barrier between your perceived and real customer happiness. Let’s face it; we all want to think we’re doing a great job. But unfortunately, its quite common for what a business thinks about its own product/services and what its customers think, not to match. That’s where NPS can help to bridge the gap.
If you use your NPS gathered intelligence correctly, it can highlight key areas for future business improvements as well as the things your business does well! Pairing NPS with your buyer persona’s can really affect your marketing strategy. Adding real quotes and NPS data into persona’s is the best way to discover the real problems your customers are facing and solving with your product/service. Ultimately this enables you to tailor future marketing drives around the real issues your customers, and ideal customers, are facing. Using this real customer intelligence is one of the best ways to make sure your marketing drives are going to hit home and deliver the results you want.
In addition to all this, here are the other core advantages that NPS offers:
- Categorising customers by levels of loyalty
- Identification of at-risk and unsatisfied customers
- Enabling optimisation around a specific customer metric
- Benchmarking against niche market and competitor scores
- Monitoring progress in terms of improvements in products and services
Gathering customer feedback will not only help your business to adjust its marketing strategies; it also lets customers know that their opinions matter. This, in itself, can help to foster brand loyalty.
NPS is a critical metric used by businesses across the globe. If it’s something you’re contemplating using, why not speak to our specialist NPS team today?