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Customer retention can be a tough ask for many businesses, but with the right tools, it is a challenge that companies with high NPS® have overcome. It’s an essential attribute for businesses looking to grow because acquiring new customers is only one part of a sustainable growth strategy.
Retaining consumers is far cheaper than acquiring new ones, and NPS® surveys are an effective tool to measure customer loyalty and give you insights into customer retention for your brand.
Yes, you may feel that you’re delivering excellent services and good value to your customers, but they may not feel the same way. Your intent does not always match customers’ experiences, and NPS® is a good way to find out just where you’re going wrong (or right!).
Net Promoter Score® or NPS® is a metric that one can use to understand how respondents feel about your brand. Simply put, it’s a customer loyalty score or customer satisfaction score, which ranges from -100 to 100. To measure your score, you need to ask your respondents one question :
“How likely are you to advocate this product/company/service to a friend or a colleague?”
Respondents can then choose their answer from a scale of 0-10. Depending on your requirements, you can also ask the respondents why they scored you as they did.
Related read: Guide on NPS®
Create branded surveys. Collect data. Uncover insights.
Companies like Amazon, Apple, Netflix, and Tesla have maintained consistently high NPS® for a while now and have built up their brand into the behemoths they are today. What is it that they’re doing that makes their customers unwilling to switch to other brands?
Apple, Amazon, Netflix, Lexus, and Tesla are a few companies with high NPS®. All these businesses are in industries known for finicky customers, making their scores even more impressive. Keep in mind that the average Net Promoter Score® varies by industry. A 40 may hold more value in one vertical than a 60 does in another.
What do good NPS® scores mean for a business? A high Net Promoter Score® usually means that customers (respondents) are happy with your brand and would like to continue with your products or services.
Let’s look at three industry leaders to understand how they not only became the companies with the highest NPS® scores but also created a highly loyal customer base.
The world’s most valuable company for a reason. Apple’s focus on perfection permeates all aspects of its organization. From products to customer service to events – everything has to work without a hitch.
This shows in Apple’s customer retention.
Seemingly anti-consumer decisions like removing the 3.5mm jack or shipping their phones without a charger included in the box have done little to sway their customers away from the brand. Their products have become more expensive, but that’s had a negligible impact on their sales figures.
Apple’s NPS® scores remain consistently high with respect to the industry they operate in, and its loyalists ensure that Apple has a stable base from which it can target new challenges.
Being one of the companies with a high NPS® score, Amazon prides itself on being “Earth’s most customer-centric company” – a statement that is difficult to dispute. After all, this logistics giant is a key figure in almost every industry it targets Home automation, streaming/OTT services, enterprise cloud services, and many more.
Amazon’s customer-focused leadership principles see it perform consistently well in NPS® surveys, which has translated into them having excellent customer retention. What’s more, Amazon’s existing customers are extremely willing to buy into their ecosystem.
Although exact figures are unknown, Amazon has between 70-90 million members, it’s the Amazon Prime subscription.
Amazon’s focus on customer experience can explain these incredible numbers. They’ve honed their website experience to perfection, and it shows: 85% of amazon prime shoppers visit their website at least once in a week. The number for non-prime shoppers is 56%.
From making online payments mainstream with PayPal to getting widespread acceptance for electric vehicles with Tesla – Elon Musk has been a driving force behind many game-changing products.
Tesla owners are incredibly happy with their vehicles, and that reflects in Tesla’s high NPS® scores. While previously, car owners had to adapt themselves to their vehicles’ feature set, they’ve now got a vehicle that can be personalized like never before. An incredible 91% of Tesla owners said that they would be willing to buy from the brand again, showing just how well Tesla’s high NPS® has translated into customer loyalty and retention.
That’s something other carmakers must take very seriously because prying customers away from Teslas’ electric charge up the charts will require more than just a good product.
A good product or service can be judged by several parameters, but to inspire customer loyalty there are certain attributes which a business must strive to imbibe in itself.
Companies with high NPS® usually have some, if not all of the following attributes:
Netflix, Amazon, et al. pride themselves on speed. It could be getting you instant access to a show you want or getting you that PlayStation 5 the very next day after ordering. Essentially, any interaction you have with their brand needs to be effortless.
This can be achieved by collecting feedback across multiple touch points along a typical customer journey with your brand and leveraging the insights one glean from this feedback to develop better services.
Netflix exemplifies this attribute: You can use a single Netflix account across all your devices, with upto 4 people watching different content simultaneously. This simple attribute makes it extremely easy for customers to refer Netflix to their friends or family, contributing to high NPS® scores.
Voxco survey software provides an omnichannel platform to conduct customer feedback surveys across phone, mobile, web, and offline channels. With a demo, discover how you can replicate CX leader’s customer experience strategies.
NPS® leaders provide exemplary customer service. Apple, Amazon, and Lexus leave no stone unturned to ensure that their customers feel like they are a priority. Moreover, their support is available across channels, which allows them to respond to customer concerns as quickly as possible.
Businesses that employ an omnichannel approach for customer interaction display 91% greater customer retention rates compared to businesses that don’t.
Amazon employs large numbers of customer representatives across the globe to ensure that they are equipped to maintain high levels of customer satisfaction. (Conduct your customer satisfaction research with our customer satisfaction survey template)
Netflix takes a more “human” approach to their customer experience, with live reps available to solve their customer service issues.
Having reps available on social media, chatbots, telephone, in person or via email are indicators of companies with high NPS®, and an omnichannel approach is excellent for getting accurate feedback to help drive growth.
Check our Voxco’s omnichannel survey platform. Try a free demo.
These companies may not have reinvented the wheel, but they did innovate in ways that made the customers’ life easier in ways they could never have anticipated.
Having an all-touch phone without a stylus seemed like a crazy idea back in 2007, but it worked, and the world of smartphones hasn’t been the same since the iPhone. Electric cars aren’t a new concept, but Tesla made them daily drivable and via their supercharger network – Dependable. Amazon, Netflix, and Airbnb – all of them offer unique value propositions to the customer, which helps them achieve high NPS® scores.
Customers like to know that they can depend on your brand. Most of us have used Amazon’s refund and return facilities. They’re seamless, and Amazon rarely kicks up a fuss when it comes to acknowledging that there was an issue with the delivery.
Netflix’s servers are incredibly well sorted, with minimal downtime – when you want to get home after a long day at work and resume the episode of Daredevil you’d started watching previously, you know it’ll be there, at the exact same spot you left it.
When consumers know that they can depend on your services and your incident resolution mechanisms, they tend to remain loyal to your brand.
Simplicity sells – Apple is a testament to that. As is Netflix and Spotify. Apple fans can never stop talking about how “easy” or “convenient” it is to use their devices and services.
Simple products and services are extremely easy to recommend and is an attribute that most companies with high NPS® have.
An increasingly digital world has made it possible to personalize even the most granular attributes of a product or service, including overall customer experience. Personally relevant content from brands tends to get a better response from customers, as 78% of consumers claim that personally relevant content increases purchase intent. It helps customers feel that they’re receiving an individualized customer experience.
Companies with high NPS® scores have shown the benefits of working on improving your Net Promoter Score®. Customer retention and positive customer experiences and journey are just a few things that are synonymous with good NPS® results.
If you’d like to measure where you stand, Voxco’s NPS® calculator can help you calculate your NPS® and compare it with industry averages. You’ll also find links to our NPS® guide and articles which can help you on your customer retention journey.
Now that we have learned what these companies with the highest NPS® scores have in common let’s look at three steps you should implement in your advocacy marketing strategy to increase your company’s Net Promoter Score®.
Advocacy marketing has the potential to be extremely profitable and valuable for your business and its brand value and positioning. However, instead of simply delivering good products and services and hoping for the best, it’s far more productive to identify promoters, detractors, and passives.
NPS® surveys are an effective tool for identifying your promoters, detractors, and passives. They can empower you to conveniently find out which of your customers are likely advocates for your brand and why. NPS® scores can help you profile your customers better and nurture them for word-of-mouth marketing.
The “why” in feedback surveys can get you insights into factors that make customers loyal to your brand and can be a stepping stone for an advocacy marketing strategy.
NPS® surveys allow researchers to append another question to the initial opening question. You can ask your respondents why they scored you as they did. This feedback can play a critical role in helping you improve your products and services and can often help shine a light on lesser-known bumps in your organizational structure or customer journey.
After gleaning insights via NPS® surveys, you must implement this feedback into your employee and customer journeys. After all, both of these entities are capable of organic promotion for your brand and are effective tools for advocacy marketing.
A customer experience program that effectively integrates customer feedback and visibly appreciates them for it is a key attribute of doing advocacy marketing work for your business.
Take Apple’s “shot on iPhone” exercise: It helped customers feel like they’re a contributor to Apple’s success (and even product development) and also worked as a tool to advertise the iPhone’s camera capabilities.
The same rationale works with employees as well. When your employees speak no ill of your organization and in fact, vociferously advocate for your services, It has a significantly positive impact on brand value.
With Voxco’s omnichannel survey software, you can set up effective customer experience programs with customer experience tool programs that incorporate the latest research technologies (NPS® surveys, CSAT, CES, etc.) that can help you develop an effective Advocacy marketing strategy for your brand.
→Identify the key drivers of customer satisfaction.
→Close the experience gap.
For a business to succeed, customer loyalty, satisfaction, and retention play a crucial role. NPS® is a significant metric that helps you gain insights into customer satisfaction and measure sentiment.
This metric has gained traction among industry leaders. In this blog, we have discussed the attributes that serve as a common thread among companies with high NPS®. By understanding and embracing these factors, you can also strive towards achieving the highest Net Promoter Score® and fostering strong customer relationships.
However, it’s important to realize that the suggested methods in the blog are not a one-size-fits-all approach. You must adapt this principle based on your industry, business objective, and target audience.
By weaving these threads into your business, you can improve customer experience, boost loyalty, and drive growth in today’s competitive marketplace.
NPS® refers to Net Promoter Score®, a metric that businesses in all industries use to measure customer loyalty and satisfaction. The metric offers a quantifiable approach to measuring customer sentiment and loyalty.
The idea behind this metric is to categorize the respondents into promoters, passives, and detractors based on their likelihood to recommend the organization and its offerings.
Any score above 0 (zero) is considered a good NPS® score. Generally, scores above 50 are excellent, and above 70 are exceptional. However, the benchmark can vary across industries. So it’s important to compare the NPS® score by the company within the same industry to get a more accurate assessment.
A 70% Net Promoter Score® is considered exceptional as it indicates a higher level of customer satisfaction and loyalty.
The metric is applicable across various company sizes and industries. Small businesses to enterprises can benefit from implementing the metric to measure loyalty and drive business success.
NPS® helps you understand how likely customers are to advocate for your brand to others. This provides valuable insights into customer sentiment and loyalty. You can use the metric to track how customers feel about your brand, where you stand in the competition, and identify areas of improvement.
While you cannot use a one-size-fits-all approach to improve NPS® scores, here is a general process to boost the score.
Net Promoter®, NPS®, NPS Prism®, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld. Net Promoter Score℠ and Net Promoter System℠ are service marks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld.