Is NPS a valid success metric for B2B products?

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When it comes to measuring the success of a B2B product, there’s no shortage of metrics that companies can use. One metric that’s often thrown around is the Net Promoter Score (NPS). But is NPS really a valid success metric for B2B products? In this blog post, we’ll take a closer look at NPS and explore some alternative ways to measure the success of a B2B product.

What is NPS?

First, let’s define what NPS is. In a nutshell, NPS is a measure of customer satisfaction and loyalty. It’s calculated by asking customers a simple question: “On a scale of 0-10, how likely are you to recommend this product to a friend or colleague?” Customers who respond with a 9 or 10 are considered “promoters,” those who respond with a 7 or 8 are considered “passives,” and those who respond with a 0-6 are considered “detractors.” The NPS is then calculated by subtracting the percentage of detractors from the percentage of promoters.

On the surface, NPS seems like a great metric for measuring the success of a B2B product. After all, who wouldn’t want to know how likely their customers are to recommend their product to others? But when it comes to B2B products, there are a few problems with using NPS as a success metric.

Why it doesn’t work for B2B products?

One problem is that NPS is focused on customer satisfaction and loyalty, rather than on the actual performance of the product. In a B2B setting, the ultimate goal is usually to drive revenue and improve the bottom line, not just to make customers happy. NPS doesn’t necessarily give you a clear picture of how well your product is performing in terms of meeting the needs of your target market.

Another problem with NPS is that it’s based on a single question, which doesn’t always provide a lot of context. A customer might give your product a high score on the NPS question, but that doesn’t necessarily mean they’re using the product in the way it was intended or that the product is delivering the results they need.

What are some better metrics?

So if NPS isn’t the best metric for measuring the success of a B2B product, what are some alternatives? Here are a few metrics to consider:

  • Customer retention rate: This metric measures how well your product is retaining customers over time. A high retention rate is a good sign that your product is meeting the needs of your customers and that they’re getting value from it.
  • Revenue: This is probably the most straightforward and important metric for measuring the success of a B2B product. If your product is generating revenue, it’s likely that it’s meeting the needs of your target market.
  • ROI: This metric measures the return on investment for your product. It’s important to know if your product is generating enough revenue to cover its costs and provide a good return on investment.
  • Customer feedback: This is a more qualitative metric, but it can be very valuable. By gathering feedback from customers, you can get a better sense of how well your product is meeting their needs and what areas need improvement.
  • User engagement: This metric measures how much customers are using and interacting with your product. A high level of engagement is a good sign that your product is meeting the needs of your customers and that they’re finding value in it.

Closing Thoughts

In conclusion, NPS is not a valid success metric for B2B products. While it can be a useful metric for measuring customer satisfaction and loyalty, it doesn’t always provide a clear picture of how well a product is performing in terms of driving revenue and improving the bottom line. Instead, consider using metrics like customer retention rate, revenue, ROI, Customer feedback and user engagement.