If you are new to the B2B SaaS market, you will definitely have encountered an NPS (Net Promoter Score). Simply put, with the help of NPS in B2B SaaS, you can tell how well your company is doing regarding customer satisfaction.
Businesses are starting to understand the importance of NPS because it is the simplest way to reach customers. Understanding your customers is a must. It helps businesses determine which products appeal to which type of customers and why that happens.
In this article, we will discuss what NPS really is, good B2B SaaS NPS benchmarks, and how you can improve your NPS score.
What Is NPS?
We have likely all taken part in giving businesses an NPS score without us really knowing about it. Have you ever answered a survey where you rated certain products after shopping? If so, then understanding NPS will be much easier for you.
NPS, which stands for Net Promoter Score, measures how satisfied customers are with their experience and how likely they are to refer the business to a friend or colleague. Sound familiar?
If you have ever answered a survey, you’ve often must have encountered questions like “Would you refer XYZ to a friend?” That is the basis of NPS in B2B SaaS companies.
What Are Good B2B SaaS NPS Benchmarks?
Getting scores is easy. You create surveys and get your customers to answer them, but how do you interpret the answers? Your life would be much easier if your survey questions asked customers to rate products or their experience.
Calculating an NPS is pretty simple. You subtract the number of negative answers or detractors from the number of positive answers or promoters. A simple example; If you have 30 promoters and 7 detractors, your score will be 30-7=23.
The B2B SaaS industry averages 36, which classifies as an “excellent score.” A score between 20 and 30 classifies as a “good score,” while anything less than 20 is less than ideal. There is also a different scale put forth by Bain & Company.
Bain & Company states that a score between 0-20 is a “good score.” Scores over 50 are exceptional, and scores over 80 are world-class.
How Can I Improve My NPS Score?
We know that you want to stand out in the industry, and for that, you will need a good NPS. There are several ways you can look to improve your score, but we have listed the top 5 best methods:
- Understand what your customer wants and what they are looking for.
- Look for and identify any shortcomings and work on improving them.
- Learn that the customer holds the greatest value and try to show them that.
- Offer loyalty programs and other rewards that excite customers and lure them back.
- Keep taking surveys of customers’ experiences and make changes to your business continuously.
Taking surveys is simple and can be done easily, but it is much harder to act upon customer suggestions. Having a good NPS is vital in the B2B SaaS industry. To achieve that, you must understand your customers and work towards satisfying them at every possible opportunity.
Now that you know how NPS B2B SaaS works, head on over and improve your business today!