Net promoter scores (NPS) and customer loyalty tend to be strongly linked, but it isn’t unheard of to have a high NPS but low retention.
To begin, you will need to confirm a low level of retention. You can do this through the Retention section of Customer Monitor, available via the navigation bar to the left hand side.
This name can be customised, so look out for this icon if you can’t find it:
When you first enter this section, you will be presented with a view similar to the below.
This view includes the date range you are investigating, any applied segmentation, the retention filters and export options. The most prominent feature is the overall retention graph, which groups the responses to your unique retention question.
The groups range from those who are highly unlikely to use your services or buy your products again, to those who are highly likely to return to your products or services.
A quick glance at this graph should confirm or allay your concerns about customer retention and loyalty. If you have a significant percentage of customers in the unlikely or highly unlikely sections, then you have a problem.
To continue with this analysis, click on the ‘highly unlikely’ graph bar, or select it in the retention filters.
You will notice a table will drop down below the graph, similar to the image below.
This table contains the details of each individual respondent within the category you have selected, including:
- Date of response
- Name and contact details
- Their latest NPS score
- Their response to the reason why they gave the NPS score
Sort the table by clicking on the NPS column. This will bring the top NPS scores of your respondents in highly unlikely to the top of the table.
If you have a significant number of promoters (obvious due to their green NPS score) in your highly unlikely retention bracket, then something may be wrong with your customer experience — or it may simply be due to the industry you are in.
One very important factor to remember is that some industries naturally have a low retention rate. For example, a legal firm that provides advice for divorcees may have a low retention rate simply because their clients don’t expect to use them again.
If you are in an industry where this may be a factor, don’t panic. This may simply be the norm.
If you aren’t in such an industry, follow the next steps.
To ease this problem, you should investigate the reasons for the low retention rate — and fix them.
You may find that the reasons for low retention are expressed in the comments of the highly unlikely customers, available in the table.
Alternatively, taking note of the high NPS customers in question and navigating to the Key Improvements section to search for their responses there may also have some insights.
Keep an eye out for common problems, such as frequent operational errors, product complaints, or announced strategic directions that don’t appeal to your current customers. It may be something as simple as a price increase that makes satisfied customers look elsewhere.
If you have a significant number of high NPS, low retention customers, you may want to consider segmenting your data. This will allow you to identify your most valuable segments in this high-NPS, low-retention situation and prioritise them accordingly.
For more tutorials on making the most of Customer Monitor, access the rest of our documentation here, or contact your account manager for additional details.