One of the most common questions we receive, as an NPS®-focused software business, is how Net Promoter Score® differs from the type of data you can extract by studying people’s reactions on social media platforms like Facebook, Twitter and Instagram.
This is an easy question to answer, although one that’s best tackled in detail. Below, we’ve explained how Net Promoter Score and social media reactions differ as market research tools, as well as how these two sources of data can be used together to help your business grow.
Eventually, every business will have to face an angry customer. Clients become upset with businesses for a variety of reasons, from justified misunderstandings to expectations that don’t match up with reality.
Dealing with an angry or disappointed customer can be a challenging experience, especially if you’ve grown accustomed to satisfied ones. Luckily, you’re not the first business to face this problem, and the interaction might not be as bad as it first seems.
One of the biggest challenges for any business is developing strong, insightful relationships with customers.
In this respect, Net Promoter Score® is one of the most efficient tools to ensure progress towards establishing meaningful bonds and effective communication with clients, focusing on earning the passionate loyalty of the ones who would further sing the company’s praise.
That makes Net Promoter Score, as of 2017, 14 years old — an eternity for a customer success metric in the fast-paced world of technology. As a result, it’s understandable that some people might view Net Promoter Score as an outdated, overexposed and overused system.
One of the biggest benefits of Net Promoter Score® is that it gives you timely, relevant customer feedback when you need it most.
With this feedback, you can make changes and improvements to your product or service. Do it right and there’s a chance you’ll win back an uncertain customer, or earn the long-term respect and loyalty of a valuable client.
But when does feedback start to lose its relevance? Over time, it’s likely that your business and its customers will change. Can you still rely on feedback from months or years ago to guide your customer satisfaction priorities? Also, should you let it affect your Net Promoter Score?
Since it was first introduced in 2003, Net Promoter Score® has established itself as the primary metric for measuring customer satisfaction, retention and potential growth.
However, it’s certainly not the only customer satisfaction metric out there. From CSAT and CES to alternative methods of measuring customer satisfaction, the world of market research is full of useful methods of recording customer sentiment.
Monthly recurring revenue, or MRR, is the lifeblood of any SaaS business. If your company is charging the clients on a monthly base, signing up new customers and keeping them onboard has an incredible impact on your revenue, growth rate and profits.
The only problem is that MRR can be notoriously difficult to calculate accurately. As customers join and cancel, projecting your monthly recurring revenue for two, three or six months into the future can be a serious challenge, even for the most data-focused businesses.