May 27, 2019
Importance of Net Promoter Score (NPS)
Introduced in 2003, the Net Promoter Score (NPS) has become the single most popular customer feedback mechanism available. It is a one-question survey that measures overall customer satisfaction using a score based on responses to a single question: “How likely are you to recommend our company/product/service to a friend or colleague?” The scoring for the response is usually based on a 0 to 10 scale; each score is then pinpointed to 3 crucial customer segments: promoters, passives, and detractors.
Although NPS surveys have been around for more than 15 years now, their popularity has suddenly increased dramatically. In this article, we discuss 3 trends that have helped the NPS method gain momentum and how you can understand them to design better experiences for your customers — and boost your NPS while you’re at it.
Customers are expecting more from companies
Since the NPS method was introduced, customer expectations have increased. This means that 89% of companies now expect to compete primarily on customer experience (Gartner). The following factors have contributed to this trend:
- Technological advances: Customers hear about new and improved technologies on a regular basis. In this context, it can be disappointing to realize that the product you’re offering is outdated.
- Customers expect to be connected 24/7: Thanks to mobile technologies and social media, customers are able to connect 1:1 with brands at any time, from anywhere. This means they’re more impatient than never and when you fail to respond to a customer in a timely manner (or at all), you risk alienating them.
- A shift towards self-service: Customers can generally find what they’re looking for online. What this means is that customers no longer have to rely on sales or support representatives for the information they need; they can open their computer, type a question into a search engine, and instantly find what they’re looking for. So when customers can’t find an answer to their question using online search, they get frustrated because they are then forced to contact customer support. For this reason, it’s a good idea to refine your SEO efforts for exact queries and create a comprehensive knowledge base on your website.
- Customers expect everything to be personalized: Millennials, who’ll make up 1 in 3 adults by 2020 (Amazon), are easily able to tweak technologies to suit their needs — and other generations have been quick to adapt. As a result, consumers now refuse to settle for generic products or services — and content, for that matter.
The SaaS industry has grown exponentially
Subscription-based businesses have been around for decades (think gym memberships and magazine subscriptions). But since the NPS method was introduced in 2003, the subscription-based business model has exploded. In particular, a lot of software is commonly sold as a monthly service.
The subscription-based business model is democratic, which is great news for customers. It empowers them to vote with their money. But for brands, this model can be risky. Because customers pay monthly for access to products and services, they can end their subscription at any time — and many usually do after they’ve had a bad experience. In this context, brands must keep their customers happy if they wish to survive, let alone thrive.
The following journey allows you to send a Delighted NPS survey to a customer 90 days after they’ve purchased. This journey helps you work out just how happy your customers are, allowing you to act accordingly if a customer provides a detractor score — before it’s too late.
Customers are always connected
Your customers carry phones, tablets, and other connected devices with them everywhere they go. They engage with their networks via SMS, social media, email, and instant messaging. And WiFi is usually within reach, regardless of where they are in the world.
This constant connectivity has a huge impact on brands. Consider this: A single tweet, Facebook post, or a review on Google or G2Crowd can be seen by many people all over the world. That means a single negative review can leave a permanent scar on your brand. For this reason, transforming your detractors into promoters is imperative for brand survival.
Your customers are in control. Pay attention to them
The trends discussed in this article have been instrumental in shifting the locus of control from brands to customers. Today, brands can no longer afford to prioritize their own messaging over their customers’ needs. To become truly customer-centric organizations, brands must constantly measure customer satisfaction. And because the NPS method is both simple and effective, it appeals to both customers and brands, causing it to become one of the most popular customer feedback mechanisms available.
And with Autopilot’s Delighted integration, collecting NPS data (promoters, passives, detractors) is made easy. You can then use Autopilot’s marketing automation visual canvas to automate follow-up journeys for each audience segment based on their unique needs. In doing so, you’ll increase satisfaction, reduce churn, and boost revenue.