The common threads tying companies with high NPS together

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Customer retention can be a tough ask for many businesses, but with the right tools it is a challenge that has been met by companies with high NPS. It’s an essential attribute for businesses looking to grow, because acquiring new customers is only one part of a sustainable growth strategy.

Retaining customers is far cheaper than acquiring new ones, and NPS surveys are an effective tool to measure customer loyalty, and gives you insights on customer retention for your brand.

Yes, you may feel that you’re delivering excellent services and good value to your customers, but they may not be feeling the same way. Your intent does not always match customers' experiences, and NPS is a good way to find out just where you’re going wrong (or right!).

What is NPS?

Net promoter score or NPS is a metric which one can use to understand how respondents feel about your brand. Simply put, it's a customer loyalty score which ranges from -100 to 100. To get this score you need to ask your respondents one simple question :

“How likely are you to recommend this product/company/service to a friend or a colleague?”

Respondents can then choose their answer from a scale of 0-10. Depending on your requirements, you can also ask the respondents why they scored you as they did.

Which are the companies with high NPS scores?

Companies like Amazon, Apple, Netflix and Tesla have maintained consistently high NPS for a while now, and have built up their brand into the behemoths they are today. What is it that they’re doing that makes their customers unwilling to switch to other brands?

Apple, Amazon, Netflix, Lexus and Tesla are a few companies with high NPS. All these businesses are in industries known for finicky customers, making their scores even more impressive. Keep in mind that average net promoter scores vary by industry. A 40 may hold more value in one vertical than a 60 does in another.

What do good NPS scores mean for a business? A high net promoter score usually means that customers (respondents) are happy with your brand, and would like to continue with your products or services.

Companies with high nps typically have better customer retention.

Apple

The world’s most valuable company for a reason. Apple’s focus on perfection permeates all aspects of its organization. From products, to customer service to events - everything has to work without a hitch.

The proof is in the pudding as they say, and this shows in Apple’s customer retention. Seemingly anti-consumer decisions like removing the 3.5mm jack, or shipping their phones without a charger included in the box have done little to sway their customers away from the brand. Their products have become more expensive but that’s had a negligible impact on their sales figures.

Apple’s NPS scores remain consistently high with respect to the industry they operate in, and their loyalists ensure that Apple has a stable base from which they can target new challenges.

Amazon

Amazon prides itself as being “Earth’s most customer centric company” - a statement which is difficult to dispute. After all, this logistics giant is a key figure in almost every industry it targets: Home automation, streaming/OTT services, enterprise cloud services and many more.

Amazon’s customer focused leadership principles sees it perform consistently well in NPS surveys, which has translated into them having excellent customer retention. What’s more, Amazon’s existing customers are extremely willing to buy into their ecosystem.

Although exact figures are unknown, Amazon has between 70-90 million members it’s the Amazon prime subscription.

These incredible numbers can be explained by amazon’s focus on customer experience. They’ve honed their website experience to perfection, and it shows: 85% of amazon prime shoppers visit their website at least once in a week. The number for non-prime shoppers is 56%.

Tesla

From making online payments mainstream with paypal, to getting widespread acceptance for electric vehicles with Tesla - Elon Musk has been a driving force behind many game changing products.

Tesla owners are incredibly happy with their vehicles, and that reflects in Tesla’s high nps scores. While previously car owners had to adapt themselves to their vehicles' feature set, they’ve now got a vehicle that can be personalized like never before. An incredible 91% of Tesla owners said that they would be willing to buy from the brand again showing just how well Tesla's high NPS has translated into customer loyalty and retention.

That’s something other carmakers must take very seriously, because prying customers’ away from Teslas’ electric charge up the charts will require more than just a good product.

Download Now: The Definitive Guide to NPS

What do these companies with high NPS have in common?

A good product or service can be judged by several parameters, but to inspire customer loyalty there are certain attributes which a business must strive to imbibe in itself. Companies with high NPS usually have some, if not all of the following attributes:

Quality services, fast delivery

Netflix, Amazon et al, pride themselves on speed. It could be in the form of getting you instant access to a show you want, or get you that playstation 5 the very next day after ordering. Essentially, any interaction you have with their brand needs to be effortless.

This can be achieved by collecting feedback across multiple touch points along a typical customer journey with your brand, and leveraging the insights one gleans from this feedback to develop better services.

Netflix exemplifies this attribute: You can use a single Netflix account across all your devices, with upto 4 people watching different content simultaneously.

This simple attribute makes it extremely easy for customers to refer Netflix to their friends or family, contributing to high NPS scores.

Customer service leaders

NPS leaders provide exemplary customer service. Apple, Amazon, Lexus leave no stone unturned to ensure that their customers feel like they are a priority. Moreover, their support is available across channels, which allows them to respond to customer concerns as quickly as possible. Businesses which employ an omnichannel approach for customer interaction display 91% greater customer retention rates compared to businesses which don’t.

Amazon employs large numbers of customer representatives across the globe to ensure that they are equipped for maintaining high levels of customer satisfaction.

Netflix takes a more “human” approach with their customer experience, with live reps available to solve their customer service issues.

Having reps available on social media, chatbots, telephone, in person or via email are indicators of companies with high NPS, and an omnichannel approach is excellent for getting accurate feedback to help drive growth.

Innovation

These companies may not have reinvented the wheel, but they did innovate in ways which made the customers’ life easier in ways they could never have anticipated.

Having an all touch phone without a stylus seemed like a crazy idea back in 2007, but it worked, and the world of smartphones hasn’t been the same since the iphone. Electric cars are not a new concept, but Tesla made them daily drivable, and via their supercharger network - Dependable. Amazon, Netflix, Airbnb - all of them offer unique value propositions to the customer which helps them achieve high NPS scores.

Reliability and Accountability

Customers like to know that they can depend on your brand. Most of us have used amazon’s refund and return facilities. They’re seamless, and Amazon rarely kicks up a fuss when it comes to acknowledging that there was an issue with the delivery. Netflix’ servers are incredibly well sorted, with minimal downtime - when you want to get home after a long day at work and resume the episode of Daredevil you’d started watching previously, you know it’ll be there, at the exact same spot you left it.

When consumers know that they can depend on your services and your incident resolution mechanisms, they tend to remain loyal to your brand.

Simple, easy to get to grips with

Simplicity sells - Apple is testament to that. As is Netflix and Spotify. Apple fans can never stop talking about how “easy”, or “convenient” it is to use their devices and services.

Simple products and services are extremely easy to recommend, and is an attribute that most companies with high NPS have.

Personalized services

An increasingly digital world has made it possible to personalize even the most granular attributes of a product or service, including overall customer experience. Personally relevant content from brands tend to get a better response from customers, as 78% of consumers claim that personally relevant content increases purchase intent. It helps customers feel that they’re receiving an individualized customer experience.

Know your NPS

Companies with high NPS scores have shown the benefits of working on improving your net promoter score. Customer retention and a positive overall customer experience and journey are just a few things that are synonymous with good NPS results.

If you’d like to find out where you stand, Voxco’s NPS calculator can help you calculate your NPS and compare it with industry averages. You’ll also find links to our NPS guide and articles which can help you on your customer retention journey.

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How to set up an Advocacy Marketing strategy

Identify promoters

Advocacy marketing has the potential to be extremely profitable and valuable for your business and its brand value and positioning. However, instead of simply delivering good products and services and hoping for the best, it's far more productive to identify promoters, detractors and passives.

NPS surveys are an effective tool for identifying your promoters, detractors and passives. They can empower you to conveniently find out which of your customers are likely advocates for your brand and why. NPS scores can help you profile your customers better and nurture them for word of mouth marketing.

Focus on the why

The “why” in feedback surveys can get you insights into factors that make customers loyal to your brand, and can be a stepping stone for an advocacy marketing strategy.

NPS surveys allow researchers to append another question to the initial opening question. You can ask your respondents why they scored you as they did. This feedback can play a critical role in helping you improve your products and services, and can often help shine a light into lesser known bumps in your organizational structure or customer journey.

Develop a holistic customer and employee experience

After gleaning insights via NPS surveys, you must implement this feedback into your employee and customer journeys. After all, both of these entities are capable of organic promotion for your brand and are effective tools for advocacy marketing.

A customer experience program which effectively integrates customer feedback and visibly appreciates them for it is a key attribute of making advocacy marketing work for your business. Take Apple’s “shotoniPhone” exercise: It helped customers feel like they’re a contributor to apple’s success (and even product development) and also worked as a tool to advertise the iPhone’s camera capabilities.

The same rationale works with employees as well. When your employees speak no ill of your organization, and in fact vociferously advocate for your services, It has a significantly positive impact on brand value.

With Voxco’s omnichannel survey software, you can set up effective customer and employee feedback management programs which incorporate the latest research technologies (NPS surveys, CSAT, CES etc.) that can help you develop an effective Advocacy marketing strategy for your brand.

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NPS Score Calculation: Identifying avenues for customer advocacy

The common threads tying companies with high NPS together

The common threads tying companies with high NPS together

What is NPS?

Which are the companies with high NPS scores?