Does Net Promoter Score Work for B2B Companies? Without Question It Does!
Many B2B companies argue that the Net Promoter Score (NPS) is of no use. However, this misleading conclusion is a consequence of incomplete information and conventional business dogmas.
One of the reasons for this common misconception is that almost all of the content available online and offline about NPS is geared towards B2C audience:
- Majority of NPS guides take B2C brands in mind, preferring terms such as “customers” in place of “clients” or “accounts”.
- The NPS scale, that measures the ability to reach customers, just isn’t as relevant for an average B2B enterprise.
Fact is, NPS is a pertinent tool for B2B enterprises that helps them measure customer satisfaction with ease and accuracy. It plays an important role in helping B2B companies expand customer base and control churn. Here’s why:
Higher Response Rates of B2B Surveys
B2B companies share a strong relationship with their customers. Surveys such as NPS that are extremely customer-centric furnish better results, and thus their response rates are higher. According to Bain & Company, the target NPS response rate for B2B brands is 50% higher than the average customer-focused brands. Higher the rate, greater the engagement of the organization with their consumers and better the insights from the survey.
Additionally, with higher response rates, B2B companies can become more confident about their data, thus their ability to make decisions enhances by leaps and bounds. To boot, firms can increase customer retention and alleviate churn.
Feedback-Loop Closing is Easier
With the aid of NPS, B2B companies can act on customer feedback or Voice of Customers (VoC) expeditiously.
NPS is a detailed survey with reliable feedback segmentation feature. It helps you segment customers into 3 distinct categories, promoters, passives, and detractors, and so you can save yourself from engaging in analysis paralysis that doesn’t benefit at all.
NPS survey, however, allows you understand customers better whether promoters, passives or detractors and close the feedback loop faster. B2B companies can use the information gathered to improve customer satisfaction and turn detractors into passives, passives into promoters, and promoters into enthusiastic and motivated evangelists respectively.
Valuable Feedback is Generated
In addition to enabling B2B firms attain higher response rates and close the feedback loop easily, NPS survey allows them improve quality of product or service by generating quality feedback. The feedback produced can be used to deliver better services to new and existing customers and turn them into loyal brand advocates.
Are You Using NPS Properly?
No doubt NPS offers many benefits, but if not used properly, its impact shall be null and void.
With a robust data integration platform in place, B2B ecosystems can use the data gathered by NPS survey and extract valuable insights for making better decisions and fostering transparency. These platforms with features such as application connectors, dashboard, etc. can help enterprises gain a 360-degree view of customers and improve customer satisfaction to streamline revenue generation and grab a bigger market share.