When Customer Success Managers talk customer health, Net Promoter Score (NPS) inevitably comes up. Since its introduction, NPS has spread rapidly and continues to be adopted by more and more CSM teams.
But why has NPS become the gold standard for measuring customer sentiment and loyalty?
To understand this, let’s take a closer look at what Net Promoter Score is and how CSMs can use it.
What is Net Promoter Score?
NPS stands for both Net Promoter Score and Net Promoter System, and asks customers: “On a scale of 0 to 10, how likely are you to recommend us to a friend or colleague?”
Respondents are labeled Detractors (0-6), Passives (7-8), or Promoters (9-10).
NPS also asks an open-ended follow up, “Care to tell us why?”, allowing your customers to articulate what is most important to them.
These comments give context and depth to the scores you receive.
Because the NPS question asks the customer to draw on their sum total of experiences with your company, you’ll learn about what customers love and dislike about their entire experience.
The key to the popularity of NPS lies in its function as a north star metric for everyone in a company to rally around.
At a company level, the valuable information gathered with NPS may guide improvement efforts across the entire organization, from product to support and even sales and marketing.
Check out our recent webinar on 5 ways for Customer Success to get the most from a modern NPS program.
How Does Customer Success Use NPS?
CSMs are looking to build loyalty. With NPS being the metric for loyalty, it’s no wonder that some Customer Success pros swear by it. It’s the perfect way to change your yearly renewal conversations from reactive to proactive.
But how does measuring NPS drive retention?
NPS Helps CSMs Keep a Pulse On Account Health
Asking the NPS question on a regular basis, for example once per quarter, provides regular feedback to know how each account is doing at a glance. The NPS score is an early warning flag to dig into the comments for context, such as a possible upsell opportunity or a potential churn risk.
Loni Spratt Brown, Sr. Director of Customer Success at Entelo, was able to reach out and save a key account after a customer responded with a low NPS score. Being able to fix an issue for a customer that immediately is a great way to turn a potential case of churn into a customer success story.
NPS Helps CSMs Advocate for Customers to the Product Team
NPS comments might come with feature requests that might open up an upsell conversation or help you proactively address a customer’s specific concerns before their renewal date approaches.
When gathering NPS data, you can directly engage your Product team by sending NPS into a Slack channel for them. This will show them how many customers are experiencing the same issues, or asking for the same new features, and change the way that Product thinks about roadmap planning.
Compiling and quantifying issues that show up in your NPS comments can also help you advocate for your customers with your company’s product team.
For example, if you can show them that key accounts are having problems with getting their data into another specific software, your product team will be more likely to prioritize building an integration for it.
NPS Helps Spread Customer Centricity to the Entire Organization
Having a score to rally the various departments around can help evangelize the value of Voice of the Customer to your entire company.
You can show people exactly what the customers love about the work that customer support has done for them, or what customers are frustrated with regarding their user experience. This helps build empathy for the customer in every department of your company, so that it’s not just Customer Success who prioritizes giving customers the best experience possible.
The Power of NPS is the System, Not the Score
Gathering feedback and measuring loyalty is only one step within the entire system of NPS. It’s important to build in ways for Customer Success to close the loop and act on the feedback you’re receiving. After all, there’s no worse customer experience than feeling like your feedback is being shouted into a black hole, with no indication of being heard.
Your customers will be delighted to know that their feedback is taken seriously.
Seeing the follow-up actions your company takes from NPS will result in higher loyalty and advocacy in your customers.
About the Author
Elisha Zhang is a Product Marketing Manager at Wootric, a simple, rigorous solution for aligning everyone around raising customer happiness.
Wootric offers a full suite of customer experience metrics including: Net Promoter Score (NPS), Customer Satisfaction (CSAT) and Customer Effort Score (CES). With Wootric, you can survey your customers wherever they are in your web or mobile app, and via email or via SMS.