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To be on top, a company has to have a brilliant product, an enthusiastic team, an enduring sales pipeline, and a strong relationship with loyal customers. Customer happiness is a result of more than just satisfactory service. An emotionally connected relationship with customers, along with great service, makes your clients come back for more, and even promote your company without prompting. This allows you to naturally and authentically build brand loyalty.

Defining Customer Happiness

It goes without saying that customers are a company’s most valuable asset. Therefore, it is essential to constantly monitor how satisfied your customers are with your service. Happy customers are those who have been able to derive significant value from your product. The reason for their happiness could be your product’s quality, the cost of the product, the service provided, and so on. The main reason for customer happiness is growth. Growth is a sign of profit, not only for your customer, but for your company as well, for which NPS is a very accurate indicator. From a customer’s perspective, customer happiness could persuade them to stay with your company’s offering for a long time, not only because the product helps them grow, but also because your service and customer-facing culture has won their trust.
Success is the outcome when you have an effective product, a brilliant team capable of overcoming challenges, a sales team that gets you the right clients, and CSMs who cement relationships with loyal customers. To strengthen customer relationships, every company has be willing to hear their problems or complaints, and promptly work out a solution. This is the juncture at which NPS (Net Promoter Score)., a simple, concise, and economical metric, enters the fray.

Defining Customer Happiness

NPS is a widely used metric in the SaaS world to track long-term happiness and customer loyalty. Its single question survey is based on a customer’s overall perception of the company, and not just about the most recent interaction they’ve had with the company.

The question posed to by the surveyor is: “How likely is it that you would recommend our company/product/service to a friend or colleague? “

Using a 0-10 scale, customer responses are sorted into three categories depending on the score:

  • Detractors (0–6): Unhappy customers, who can damage your brand by negative word-of-mouth
  • Passives (7–8): Customers who are satisfied but unenthusiastic and may even shift to competitive offerings
  • Promoters (9–10): Loyal customers, who are happy with the service and are more likely to recommend

While the category ranges can shift on a company to company basis, the end calculation remains the same. NPS is the percentage of promoters minus the percentage of detractors, which measures customer loyalty and brand advocacy.

What Information Can Be Gathered From an NPS Survey?

NPS measures the probability of a customer referring your business to their contacts. Customers stay loyal and recommend you only when they are satisfied with your service and believe that a company will be consistent in keeping them happy over a long period of time.

NPS surveys help in providing insight into the customer experience, especially for the customers who don’t interact with you or use your product less frequently. Here, do not mistake less interaction as a sign that the customer isn’t facing problems. On the contrary, they may be planning to take their business elsewhere because they do not depend on or get value from your product.

Measuring Customer Happiness Using NPS

In an attempt to measure customer happiness, NPS can provide a graph to represent your customers’ satisfaction over time. However, an actual happiness quotient can be measured through direct interaction. NPS is rather less reliable to measure customer happiness, as there is no space to provide personal insight, express views, or provide context via comments. Unfortunately, with NPS’ format limitations, there is insufficient input to predict or understand the customer experience at a deeper level.

Assessing customers has to be a company’s priority and that’s what NPS does. It provides a small window of insight into how your customers feel about your product/service at that particular moment. If they feel great, then you can celebrate that you have promoters in hand. However, if it’s negative feedback; listen carefully and contact them promptly to fix the issue, or else they might quietly churn, or worse, express their frustration publicly.

It’s hard to say that an NPS score provides a complete picture of customer happiness, based off of a 0-10 scale. It does assist a company in swiftly identifying unhappy customers, of those that actually answer the survey, since an NPS is like asking your customers to speak their mind. Getting in touch (via a call or an email) with your unhappy customers shows that you care about them and want to set things right. If complaints are resolved proactively, then is a chance of converting detractors into promoters, who can passionately promote your brand in future.

“If you can’t measure it, you can’t improve it.” – Peter Drucker

In the end, it’s not about which metric is more effective in measuring satisfaction, but rather what a company does with that feedback to optimize the customer experience. You should always interact with your clients after the survey. Try to understand why they gave those ratings, and thank them in some way for their participation. Such quantitative analysis will help in finding the universal problems faced by detractors. Try to understand the reason that made a few of your clients passives, rather than promoters. From your promoters, you will find your strongest points to win customer loyalty, and use those testimonials to win future accounts!

Shreesha Ramdas

CEO & Co-Founder, Strikedeck