While reviewing different content pieces about the Net Promoter Score®, I found that most of them are aimed at B2C audiences. Most of the service providers write about NPS in the aspect of “customers”. But based on this, it would be unfair if I say that Net Promoter Score® (NPS) data is not relevant for the B2B audience. The relevance of NPS data depends on the way you are deploying the data.
Net Promoter Score®
Net Promoter Score® (NPS) is a leading Customer Experience Metric introduced in 2003 by Fred Reichheld of Bain & Company. NPS enables you to measure the satisfaction and loyalty of your customers. It measures loyalty by gauging the willingness of customers to recommend a company, or its products or services to others. NPS ranges from -100 to 100. NPS can be measured effectively based on one simple question – How likely are you to recommend our product/service/brand or business to a friend or colleague.
Based on their experience, your customers will rate their willingness to recommend on a scale of 0-10. If they score you:
- 0-6 – They are Detractors and considered to be unhappy and dissatisfied customers.
- 7-8 – They are Passives and moderate in nature. They are neither happy nor unhappy customers.
- 9-10 – They are Promoters and considered to be super happy customers who are enthusiastic to recommend your brand to others.
Benefits of NPS for B2B
Over the years, 37% of B2B companies have gained more clients and retain a greater percentage of their existing client base using NPS data effectively. NPS for B2B has many benefits:
1. Helps to Generate Actionable Feedback
You can quickly generate NPS feedback to gauge the effectiveness of your services or products by knowing how your clients recommend your products, services, or business to others. Based on their experiences, your clients tend to provide qualitative and meaningful feedback. The responses help you to identify the pain points and customized needs of your clients and act upon them quickly to address them. This further contributes to improving the level of engagement and client retention.
2. Helps to Earn Higher Response Rate
According to Bain & Company, the target NPS response rate for business-to-business brands is 50% higher than the average target for consumer-focused brands.
The most significant aspect of conducting the NPS Survey among the B2B audience is that it earns a higher response rate. B2B companies indeed have a few customers as compared with B2C companies. But at the same time, it’s much easier for B2B companies to collaborate with their clients efficiently and establish a long-lasting close relationship and generate a high NPS survey response rate. The high response rate ensures better customer engagement and improves client retention.
3. Helps to Identify Target Segments
NPS is known for its versatility. NPS analysis helps you to understand your B2B audiences or clients better. NPS instantly identifies unsatisfied audiences and provides various parameters like text or sentiment analysis based on which you can identify the needs and requirements of your audiences and tailor your business strategies accordingly.
4. Helps to Improve Business Operations
NPS not only provides a score but also a global value on an enterprise level. This helps you to evaluate your operational capabilities. While acting upon the NPS responses you can quickly identify the potential areas of your business operations or product development, where you need innovation.
5. Closing the Feedback Loop with NPS
NPS provides the ability for your team to close the feedback loop quickly. In B2C business there are thousands of NPS responses that need to be handled quickly to get instant results. For this, we segregate the issues into two separate buckets – recurring and personal issues. But addressing every issue and closing the feedback loop can be done more quickly as B2B businesses have fewer customers than B2C customers.
In B2C business retaining unhappy customers (detractors) is quite a time taking process and you’re far more likely to simply lose them. In B2B business you’ve fewer suggestions and innovations. This further helps you to make rapid changes to your business processes that will help you turn Detractors into Passives and Passives into Promoters.
6. Helps to Improve B2B Retention
What does it take to delight a B2B customer? Before choosing any B2B customers for your business, you always look after the things like – Do they simplify our business operations? Do they offer economic value for our business? And if they meet your requirements, you can become loyal to that B2B brand.
Image Source – Net Promoter Score System
So, to check the loyalty of your B2B audience, you can send NPS Surveys at various touchpoints such as post-purchase, invoicing, post-payment, and after-ticket resolution. This helps you to get a genuine picture of how your audience is perceiving your products and services.
The feedback provides you with powerful ideas to improve business. Acting upon the NPS data (having ideas and suggestions) helps you to improve your products, services, and business operations. This further helps you to retain your B2B Customers.
Being a B2B company, you also deploy the NPS effectively. It enables you to get more actionable feedback, drives a high response rate, and other benefits. Use NPS software to automatically generate feedback to survey your clients and B2B audiences and find what exactly they expect from your business.
Archit Jain is a content writer and strategist, with extensive work, in the IT industry. He works with Zonka Feedback. He is passionate about writing on customer experience, customer satisfaction, customer feedback, and net promoter score.