NPS, or Net Promoter Score, is a metric used in business to measure customer experience and predict business growth. This proven metric, transformed from a simple customer satisfaction survey, provides the core measurement for customer experience management programs around the world.
Although it’s not directly related to cybersecurity, understanding NPS can be crucial for cybersecurity professionals. A high NPS score indicates that customers trust a company, which can be a result of effective cybersecurity measures. Conversely, a low NPS score may indicate a lack of trust, potentially due to poor cybersecurity practices.
The Net Promoter Score is calculated based on responses to a single question: How likely is it that you would recommend our company/product/service to a friend or colleague? The scoring for this answer is most often based on a 0 to 10 scale.
Those who respond with a score of 9 to 10 are called Promoters, and are considered likely to exhibit value-creating behaviors, such as buying more, remaining customers for longer, and making more positive referrals to other potential customers. Those who respond with a score of 0 to 6 are labeled Detractors, and they are believed to be less likely to exhibit the value-creating behaviors. Responses of 7 and 8 are labeled Passives, and their behavior falls in the middle of Promoters and Detractors.
The Net Promoter Score is calculated by subtracting the percentage of customers who are Detractors from the percentage of customers who are Promoters. For purposes of calculating a Net Promoter Score, Passives count towards the total number of respondents, thus decreasing the percentage of detractors and promoters and pushing the net score towards 0.
NPS scores are not expressed as a percentage but as an absolute number lying between -100 and +100. For instance, if you have 25% Promoters, 55% Passives and 20% Detractors, the NPS will be +5. A positive NPS (>0) is generally considered as good.
Importance of NPS
NPS is a highly regarded loyalty metric because it is simple, understandable, and it correlates with revenue growth. It’s used by companies as a benchmark for customer loyalty, as it measures not just how satisfied customers are but how willing they are to recommend the company to others.
It’s also a useful metric for cybersecurity professionals. A low NPS score could indicate that customers don’t trust a company’s cybersecurity measures, while a high NPS score could indicate the opposite. By monitoring NPS scores, cybersecurity professionals can gauge how their efforts are perceived by customers.
Relation Between NPS and Cybersecurity
While NPS is not a cybersecurity metric, it can be influenced by a company’s cybersecurity practices. Cybersecurity can impact customer trust and satisfaction, which in turn can affect a company’s NPS score.
For instance, if a company has a strong cybersecurity posture and effectively communicates this to its customers, it can increase customer trust and satisfaction, leading to a higher NPS score. On the other hand, if a company has poor cybersecurity practices or suffers a high-profile data breach, it can decrease customer trust and satisfaction, leading to a lower NPS score.
Improving NPS Through Better Cybersecurity
Improving a company’s cybersecurity practices can potentially lead to an improved NPS score. This can be achieved through various means, such as implementing stronger security measures, improving response to security incidents, and better communicating about security with customers.
For instance, a company could implement stronger password policies, use encryption to protect customer data, regularly update and patch systems, and use other technical measures to improve its cybersecurity. Additionally, the company could improve its incident response plan so it can quickly and effectively respond to any security incidents that do occur.
Communicating About Cybersecurity With Customers
Communicating about cybersecurity with customers can also improve a company’s NPS score. This can be achieved by being transparent about the company’s security practices, educating customers about how to protect their own data, and promptly and openly communicating about any security incidents.
For instance, a company could regularly send out newsletters or blog posts about its security practices, provide tips for customers on how to protect their own data, and promptly notify customers about any data breaches or other security incidents. This can help build trust with customers, leading to a higher NPS score.
In conclusion, while NPS is not a cybersecurity metric, it can be influenced by a company’s cybersecurity practices. By improving its cybersecurity and effectively communicating about it with customers, a company can potentially improve its NPS score.
Therefore, cybersecurity professionals should consider NPS as part of their overall strategy. By monitoring their company’s NPS score and striving to improve it, they can not only enhance their company’s security but also its overall customer satisfaction and business success.
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