It Is High Time to Work to Attain a Good NPS Score

A good Net Promoter Score (NPS) is when the number of promoters for your SaaS subscription business is more than the number of detractors (promoters are those customers who suggest your services or products to their contacts, and detractors are unhappy customers, and they fall out from the segment who could become a force in propelling your marketing efforts in growth directions with their advocacy and recommendations).

The simple formula for Net Promoter Score calculation is to subtract the number of detractors from the number of promoters. And there you go with the NPS score for your products or services!

Also Read: What is Net Promoter Score, How to calculate NPS, and Why is it Important in SaaS?

Now that we are done with cliché basics, let us take you to the point of concern—The good NPS score and the poor NPS score. If promoters for your business are more than detractors, then the NPS score will be good otherwise, it will be poor, simple!

Factors That Can Help to Attain a Good NPS Score

The NPS Score of Netflix is 51, that of Disney Plus is 42, and Hulu has an NPS of 21.

Now, you will probably be intrigued to know what factors make Netflix so desirable for its users? And how to become desirable for a certain customer base?

Here are the relevant factors:

Customer Experience Program

The customer Experience program is the strategy to offer a better customer experience to your customers.

And to craft a workable customer experience program, you have to know what customers think of what you are offering. Feedback and communication with the customers are the ways to know what is going on in the mind of the customer. This feedback from the customer side provides you with insights that can be used to plan a better experience program. The best mechanism to get feedback from the customer is to draft an NPS survey.

Now, the NPS survey is another science in itself. It is usually sent to the customer when he has completed the purchase. You can use predefined templates for the NPS survey. However, a key to the optimal use of the NPS survey is to ask precise and relevant questions from the customer.

The important elements of the customer experience program include:

  • Data analytics
  • Customer interaction strategy

When it comes to data analytics, metrics like the rate of customer retention and customer churn show whether your customer experience program is a success or not.

Also Read: Building the Customer Success For Different Subscription Businesses & Finding Factors That Help In Retaining It

Customer Sentiments

Yes, whether it is a SaaS product or a material commodity, the sentiments of the customer develop for it over time. However, whether these sentiments are good or bad, depends on the customer experience. Sentiments play a very important role when it comes to a good NPS score. Many people use miscellaneous products daily. They find these products satisfactory. However, they never recommend them to anyone unless they feel an emotional vibe for these products.

If you want your customers as well as their sentiments attached to your product or services, then you will have to do a little extra effort. Positive emotions for a product are nothing but a highly positive attitude towards what you offer.

Why do SaaS businesses offer discounts, coupons, gift subscriptions and a lot more? These perks are not planned to lure customers for once rather they build the foundation of an emotional relationship of the customer with your brand. It improves the Net Promoter Score (NPS) for a long time.

Just like good emotions boost your NPS, emotions of annoyance and hate for a product can cause irrevocable damage. One of the most important tools for the expression of negative emotions is reviews. There are reliable platforms that publish reviews of customers so that new customers can be helped before they invest money anywhere.

So, the sentiments of one customer not only affect your business with this single customer but with the entire customer base. And for a better NPS, you need to have positive sentiments from your entire customer base.

Customer Engagement

If a customer is using your product, it is not compulsory that he will recommend it to others (even if he is pretty satisfied with the products and services that you are providing). However, if emotions are attached to the usability, he will definitely promote your business. And to see if the customer is positively emotional about your services or products or not, the level of customer engagement can be of a lot of help.

Here, you will not just endeavour to engage customers but to engage them in a way that they will surely recommend or promote your product or services to friends, family, colleagues or other contacts. The extra effort will be needed to engage customers to the next level where they will be all into your services and feel like mentioning and recommending them to others.

Also Read: Optimize the Customer Engagement of your SaaS with Product Segmentation

Customer Segmentation

Customer segmentation means segregating your customer base based on certain characteristics. However, when it comes to NPS, the customers are already segregated into three groups:

  • Promoters
  • Passives
  • Detractors

Now, the thing that needs to be focused on is that Promoters, Passives, and Detractors will have different scores. And you need all of them to stay loyal to your brand. And your strategy to keep them loyal to your brand will depend on the score of these customers. Why? Because though detractors are unhappy customers, they are not equally unhappy. Some would probably be having a score of 6 and some will have more or less than this. This difference in score shows the difference in the perception that they have about you. This difference in the score will help you approach different segregations of customers differently.

Other than NPS segments, you can segment recurring customers based on buyer personas, customer lifecycle, and the lifetime value of these customers. No matter how you segregate your customers, these segments play role in NPS. And if you monitor these customer segments the way you should, NPS can be improved.

Customer satisfaction and retention of the customers are important, but the Net Promoter Score (NPS) is at the next level where you strive to hunt more customers through your existing customers. Today, businesses are so interested in increasing their NPS because it saves time and energy that one needs to find new targeted markets for SaaS products or services (which is indeed a taxing task).

If you want to work on the NPS score for your subscription business, then you need to opt for software that is efficient enough for NPS calculation. SubscriptionFlow is a customer success management software that can be of help in monitoring and improving the NPS score of your subscription business. Contact SubscriptionFlow experts now for a free demo!