A recent article by Harvard Business Review suggests answers mapped to Net Promoter Scores (NPS) for two types of business models: transactional sales and subscription sales.
Customer Experience Impact for Transactional Sales
The potential impact from customer experience is noteworthy for businesses with a transactional sales model. Customers who report the best experiences purchase 140% more than those who report the worst experiences. Moreover, when compared to NPS Passives:
- NPS Promoters spend up to 63% more
- NPS Detractors spend up to 56% less
The impact of customer experience for businesses with subscription sales models is profound. Customers who report the best customer experience remain subscribers up to four-times longer than those reporting the worst experiences. Moreover, when compared to NPS Passives:
- NPS Promoters stay at least 1 year longer
- NPS Detractors leave up to 4 years sooner
Determining a NPS generally involves surveying customers and asking them a single question: "How likely is it that you would recommend [company] to a friend or colleague?" Responses are scored based on a 0 to 10 scale and categorized as follows:
- Promoters (score 9-10) are loyal customers.
- Passives (score 7-8) are satisfied customers.
- Detractors (score 0-6) are unhappy customers.