NPS for B2B: Relevance and How to Measure It

Understanding customer sentiment and satisfaction is crucial in B2B. Particularly in B2B SaaS, in which the subscription payment needs to be reconfirmed in every subsequent period, customer satisfaction is paramount. This is where Net Promoter Score (NPS) comes into play. NPS is a powerful tool that helps businesses gauge customer loyalty and identify areas for improvement. In this blog post, we will delve into what NPS is, why it's essential, and how to measure it effectively in a B2B context. We will also explore how you can leverage the insights from promoters, passives, and detractors to enhance your B2B onboarding process.

What is NPS?

Net Promoter Score, or NPS, is a metric used to assess customer loyalty and satisfaction. It was developed by Fred Reichheld and Bain & Company and has since gained widespread adoption across various industries. NPS is based on a simple question: "On a scale of 0 to 10, how likely are you to recommend our product or service to a friend or colleague?" Based on their responses, customers are categorized into three groups:

1. Promoters (Score 9-10): These are your enthusiastic and loyal customers who are likely to promote your business to others. They are your biggest advocates.
2. Passives (Score 7-8): Passives are satisfied customers, but they may not be as enthusiastic or loyal as promoters. They are unlikely to actively promote your business but are also less likely to speak negatively about it.
3. Detractors (Score 0-6): Detractors are unhappy customers who may share their negative experiences with others. They pose a risk to your business's reputation and growth.

Why is NPS Important?

NPS is important for several reasons:

1. Customer Loyalty: It measures the loyalty of your customers, which is a critical factor for long-term success. Loyal customers are more likely to make repeat purchases and refer others to your business.
2. Feedback: NPS provides actionable feedback. It helps you understand what you're doing well and where you need to improve, enabling you to make data-driven decisions.
3. Customer Retention: Identifying detractors allows you to address their concerns promptly, reducing churn and retaining valuable customers.

Why is NPS Especially Important for B2B?

In B2B relationships, the stakes are often higher, and the customer journey is more complex. NPS is particularly relevant in B2B for the following reasons:

1. Long-term Partnerships: B2B relationships tend to be long-term partnerships. Positive NPS scores indicate a strong foundation for such partnerships.
2. Referral Opportunities: In B2B, referrals and recommendations hold significant weight. Promoters can become valuable advocates who refer other businesses to your services.
3. Complex Decision-Making: B2B decisions often involve multiple stakeholders. NPS can help you identify and address the concerns of different decision-makers.

How to Measure NPS?

Measuring NPS in a B2B context involves these steps:

1. Survey Your Customers: Send out NPS surveys to your B2B customers, asking them the NPS question: "On a scale of 0 to 10, how likely are you to recommend our product or service to a friend or colleague?"
2. Categorize Responses: Segment your customers into promoters, passives, and detractors based on their scores.
3. Calculate the NPS: To calculate your NPS, subtract the percentage of detractors from the percentage of promoters. The result can range from -100 (all detractors) to +100 (all promoters).

What Can I Do with Promoters, Passives, and Detractors?

Once you've categorized your customers, you can take specific actions based on their classification:

• Promoters: Engage with promoters to harness their enthusiasm. Encourage them to refer other businesses to your services and consider using their testimonials in your marketing materials.
• Passives: Passives provide an opportunity for improvement. Seek feedback from them to identify areas where you can enhance your offerings and customer experience.
• Detractors: Detractors require immediate attention. Reach out to them to understand their concerns and work on resolving issues promptly. Turning detractors into satisfied customers can have a significant positive impact on your NPS and overall business success.

In conclusion, NPS is a valuable tool for B2B onboarding because it helps you gauge customer loyalty, gather actionable feedback, and improve customer relationships. By measuring and acting on NPS, you can build stronger, more enduring partnerships and drive business growth in the competitive world of B2B. In Bonder, we can help you craft and execute your NPS surveys and to create a stoplight categorizing clients based on their responses and changes over time.