Customer Success and Net Promoter Score
What is Net Promoter Score?
It is a single questioned survey that asks: “How likely are you to recommend our services to your friends or colleagues?” and is followed by a “Explain your score” which gives the customer a window of opportunity to explain why he/she has opted for the score chosen above.
This survey “metricates” customer adherence. It helps in recognizing the parts where customers need attention. It helps you understand the number of customers that are promotors and the number that are detractors. Hence, it gives you an early insight about which customers will stay and which might churn and simultaneously cause churn by influencing other people around them with their feedbacks.
Why is it important for the Customer Success?
- NPS helps recognize when churn might eventuate.
- The collective responses of the reasons of the customers may aid in fixing the issues faced by them and help the Customer Success to solve them.
- It shows how much potential your product holds.
- It is an easy survey, unlike the “please spare your 10 minutes” types. The customers are more likely to answer surveys that are not long and time consuming, and the NPS is the perfect example of the same.
- It’s one number provides a lot of information.
Calculation
The calculation is done after you receive the feedback.
- The responses are allocated into three groups on the basis of their numerical input.
Promotors: Response rating is 9 or 10. These are the customers who are loyal and are the happiest with your product. These may as well go to an extend to promote your company’s services because of the fruitful output from your product.
Passives: Response rating is 7 or 8. These are the customers who have attained the product satisfaction but are still allured towards your company’s competitors and pose a mild threat.
Detractors: Response rating is 0,1,2,3,4,5,6. These are the unhappy customers who are not at all satisfied by your services. These pose a serious threat to your company’s name as they might as well go around and make negative remarks about your company’s services.
- Subtract the % Detractors from the % Promoters
NPS= %Promoters – %Detractors
Why are Detractors a threat?
- These are unhappy customers and may eventually churn which furthermore may cause loss of revenue.
- They can change the opinion of the willing customers and make them turn away from your services.
- They leave behind a bad impression of your company.
- They demote your services on social platforms.
How to curb this so called “threat”?
Paying close attention to the detractor’s response to the “why” in the NPS survey is especially important.
Analyze why the customer has been facing the issue and proactively come up with a solution. Make no delay in facing the customer’s problem and resolving it. Delaying does nothing but make the customer more upset about your services. The answers to the problems should be given immediately.
Reach out to the unhappy customers and discuss with your team about the further steps.
Bringing the detractor in contact with one of your promoters may help the matter with at least 10%.
Establish a relationship on trust, and the effort is to be such that the next time a NPS survey is given, the previous Detractors should be converted to current Promoters.