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Engineering Customer Retention
It's 5-9x more cost-effective to increase sales with existing customers compared to acquiring new ones1, 2, 3. This opportunity should not be overlooked. Did you know that a company that reduces its customer churn from 5% to 2.5% will become 50%4 (yes, 50%!) larger in 5 years than it would have otherwise? It's true. We've developed a full retention tactics database to maximize this compounding effect.
Tons of businesses will optimize their products and processes based on these filterable tactics during the coming year. Are you one of them? Or is it one of your competitors?
Utilize our retention tactics database to significantly increase the value of existing customers.
WHAT YOU GET
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With higher customer retention, you will substantially increase your revenue and profitability without needing to acquire a single new customer.
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Loyal customers and recurring revenues are more important than ever now that the cost of customer acquisition has skyrocketed[1]. We've done the heavy lifting for you and serve up Best Practice on a silver platter.
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You're just 1 minute and a few clicks away from full access to the database through an easy-to-use interface (simpler than a spreadsheet).
Available now. Our compilation of tactics was previously offered exclusively to our premium clients on consulting contracts. Now, for a limited time, we want to provide more people with the opportunity.
User retention meaning
CASE 1
CASE 2
Endorsement from an Executive Team Member
The User Growth Funnel
To comprehend the significance of a high CLV (Customer Lifetime Value), one needs to grasp the entire funnel – starting from customer acquisition cost on one end, navigating through the various stages (and potential conversion leaks), and ultimately arriving at the customer's lifetime value. The model below - the AARRR funnel[3] - is designed to propel users through the entire flow and transform them into profitable customers5. AARRR is a concept representing Acquisition, Activation, Revenue, Retention, and Referral.
For nearly a decade, hyper-growth companies have harnessed this structure with great success to optimize their businesses.
The products we offer at Rocket Toolkit are built upon the AARRR framework for the simple reason that we have observed its exceptional performance across a multitude of business types.
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+ ACQUISITION +
#####################
-> Acquisition determines the funnel size in terms of users
-> "How do we find more users?"
1) The most basic thing here is to understand where to get visibility and to be able to get a response to the visibility
2) Once you reach visibility and you see an initial response - make sure the quality of the response and the target audience are aligned with your requirements
3) Make sure you have a significant and scalable, addressable audience of customers or users
+ ACTIVATION +
#####################
-> Activation is the upstream bottleneck
-> "How do we convert users to leads?"
1) This is about finding an offer and shaping marketing messages that solve a tangible problem for a user
2) The faster and better you can communicate the value of solving the problem to users, the faster you can activate them
3) Their first impression is the lasting impression, so creating an experience where you can deliver value and solve the problem quickly is critical
+ REVENUE +
#####################
-> Revenue determines the funnel size in terms of dollars and cents
-> "How do we convert leads into high-profit paying customers?"
1) Offer premium products or services that add value to your leads, free users or subscribers they would be willing to pay for
2) Identify additional pain points where added value can be created beyond what you already do for your existing customers
3) How to upgrade and upsell customers who purchased an entry-level product or service of yours, but has the potential to become an even more profitable customer
+ RETENTION +
#####################
-> Retention is the downstream bottleneck
-> "How many of your customers are you keeping, and why are you losing the others?"
1) What do we do to make customers stay longer with their subscription, or become a repeat customer in your e-com store?
2) Identify which triggers are not only keeping your customer longer, but also makes the customer continue to spend more
3) How to dig deeper into solving customer problems while creating added value, so that the customer wants to stay longer and spend more money on your products and services
+ REFERRAL +
#####################
-> Referral or recommendations are the icing on the cake
-> "How can you turn your customers into your ambassadors?"
1) Which of your customers are the ones that would be most ideal to represent your brand and get more customers through the door?
2) Which activities would be triggers? It takes an incentive to get customers to act on your behalf and bring you more customers
3) How to get customers to act - not only to get you a single new customer - but also to promote your brand and make you look good and get plenty of new customers
++ ACQUISITION ++
####################
-> Acquisition determines the funnel size in terms of users
-> "How do we find more users?"
1) The most basic thing here is to understand where to get visibility and to be able to get a response to the visibility
2) Once you reach visibility and you see an initial response - make sure the quality of the response and the target audience are aligned with your requirements
3) Make sure you have a significant and scalable, addressable audience of customers or users
++ ACTIVATION ++
####################
-> Activation is the upstream bottleneck
-> "How do we convert users to leads?"
1) This is about finding an offer and shaping marketing messages that solve a tangible problem for a user
2) The faster and better you can communicate the value of solving the problem to users, the faster you can activate them
3) Their first impression is the lasting impression, so creating an experience where you can deliver value and solve the problem quickly is critical
++ REVENUE ++
####################
-> Revenue determines the funnel size in terms of dollars and cents
-> "How do we convert leads into high-profit paying customers?"
1) Offer premium products or services that add value to your leads, free users or subscribers they would be willing to pay for
2) Identify additional pain points where added value can be created beyond what you already do for your existing customers
3) How to upgrade and upsell customers who purchased an entry-level product or service of yours, but has the potential to become an even more profitable customer
++ RETENTION ++
####################
-> Retention is the downstream bottleneck
-> "How many of your customers are you keeping, and why are you losing the others?"
1) What do we do to make customers stay longer with their subscription, or become a repeat customer in your e-com store?
2) Identify which triggers are not only keeping your customer longer, but also makes the customer continue to spend more
3) How to dig deeper into solving customer problems while creating added value, so that the customer wants to stay longer and spend more money on your products and services
++ REFERRAL ++
####################
-> Referral or recommendations are the icing on the cake
-> "How can you turn your customers into your ambassadors?"
1) Which of your customers are the ones that would be most ideal to represent your brand and get more customers through the door?
2) Which activities would be triggers? It takes an incentive to get customers to act on your behalf and bring you more customers
3) How to get customers to act - not only to get you a single new customer - but also to promote your brand and make you look good and get plenty of new customers
Retention Marketing
Retaining customers has long been known as important. However, creating loyal customers and recurring revenue is now more crucial than ever, especially as the cost of customer acquisition has risen significantly. In this guide, we will cover everything you need to know to create, measure, and enhance customer loyalty and retention.
Your past and existing customers are a massive asset to your company[4]. It's therefore absolutely critical to maintain a strong relationship with your past and existing customers to keep them as loyal customers.
Despite this, many companies still allocate a major portion of their marketing budgets to finding new customers instead of nurturing relationships and retaining the customers they already have.
Research confirms that there are significant benefits to prioritizing existing customers and building customer loyalty. In fact, according to the book "Marketing Metrics"6 by Paul Farris et al., the probability of selling to an existing customer is 60-70%, compared to less than a 20% chance with new prospects7.
The effectiveness of efforts to retain customers is hard to underestimate. Existing customers are 50% more likely to try new products and spend 31% more8. Therefore, it's likely that 80% of your future profits will come from 20% of your existing customers. The ability to keep customers loyal is the key to success9.
Hence, if executed properly, your customer retention strategy can actually be your biggest business opportunity this year.
What is a good user retention rate
A good user retention rate is a crucial metric that reflects the effectiveness of a business in retaining its existing customers over a specific period[5]. It provides insights into customer satisfaction, loyalty, and the overall health of a company's offerings. Generally expressed as a percentage, user retention rate quantifies the proportion of customers who continue using a product or service over time. However, what constitutes a "good" retention rate can vary widely based on factors such as industry, business model, and customer expectations.
In many industries, a user retention rate above 20-25% is considered godd or decent, but a truly favorable retention rate typically exceeds 30%. Industries with subscription-based models or those with inherently loyal customer bases, such as software-as-a-service (SaaS) companies, might strive for retention rates upwards of 70%. Contrastingly, businesses with more transactional relationships or frequent purchasing patterns may have lower benchmarks for retention due to the nature of their products.
To define a "good" user retention rate, it's crucial to consider the context and goals of the specific business. Comparing the rate to industry standards and analyzing trends over time provides a better understanding of customer behavior and the effectiveness of retention strategies. A declining retention rate could signify dissatisfaction or market shifts, while a consistently high rate could indicate strong customer loyalty. Regardless of the industry, a higher retention rate generally corresponds to lower customer acquisition costs and increased customer lifetime value, both of which contribute to sustained business growth.
In conclusion, a good user retention rate varies depending on industry dynamics and business objectives. It's a key performance indicator that showcases a company's ability to engage, satisfy, and retain its customer base. Regularly monitoring and improving this metric can lead to enhanced customer relationships, greater profitability, and long-term success.
How well do you retain your users
Assessing the effectiveness of user retention strategies is a pivotal aspect of measuring the overall success of a business. To truly gauge how well a company retains its users, a comprehensive evaluation of various metrics and engagement factors is essential. Tracking user retention rates[6] over specified time frames provides valuable insights into the percentage of customers who continue using the product or service, indicative of their satisfaction and loyalty. Additionally, analyzing user engagement patterns, such as frequency of interactions, depth of usage, and interaction longevity, can offer a deeper understanding of how well the user base is retained.
Furthermore, soliciting direct feedback from users through surveys, reviews, and customer support interactions contributes to a more qualitative assessment of user retention. Positive feedback, a consistent flow of repeat customers, and a strong sense of brand loyalty all point to successful user retention strategies. Conversely, identifying areas where users are dropping off or encountering difficulties can help pinpoint areas for improvement. By constantly monitoring and adapting user retention tactics based on these evaluations, businesses can enhance their ability to keep users engaged, satisfied, and committed over the long term.
Customer retention example
Diving into the long-term perspective of what customer loyalty truly entails and looks like requires building a forward-looking quantitative growth model. Let's take a look at an example that compares two competitors - Company A and Company B.
| Company A | Company B | Difference | Comment | |
|---|---|---|---|---|
| New users per month | 1 million | 2 million | 2x | Company B is getting twice as many new users/month, so they should be the best, right? |
| Retention (customer loyalty) | 85% | 65% | -20% | Okay, but -20% isn't that bad, right? |
| MAU (Monthly Active Users) 6 months | 4,152,337 | 5,283,321 | 1,130,984 | Company B still seems to be winning here |
| MAU 1 year | 5,718,388 | 5,681,783 | -36,605 | Company A catches up and overtakes |
| MAU 2 years | 6,531,782 | 5,714,101 | -817,681 | Company A is well ahead of Company B |
| MAU 3 years | 6,647,480 | 5,714,285 | -933,195 | Note that Company B is losing almost all the users they gain each month |
In addition to disregarding retention, another classic mistake that companies make is defining their retention metrics incorrectly. Getting this definition wrong, which results in inaccurate measurement of retention and customer loyalty, can spell doom for your business.
Improve customer retention
Increasing customer retention by 5% boosts profits by 25% to 95%, according to research conducted by Fred Reichheld of Bain & Company10. So, at this juncture, we can establish that retention is a crucial puzzle piece for your business. However, what is a bit more controversial, or perhaps just less known, is how to go about enhancing retention and customer loyalty.
Improving customer retention[7] can be achieved via a multitude of strategies and tools designed to enhance customer satisfaction and engagement. Some of the commonly employed strategies include:
- Personalization: Tailoring product recommendations, communication, and offers based on each customer's interaction history, preferences, and demographics can significantly enhance their experience, leading to higher retention.
- High-Quality Customer Service: Prompt and effective customer service can help resolve issues quickly, enhancing customer satisfaction, and increasing the chance of retention.
- Regular Contact & Engagement: Keeping customers informed about new product launches, sales, tips, and other relevant information helps maintain continuous engagement.
- Loyalty Programs: Rewarding customers for their continued loyalty with exclusive discounts, early access, perks, etc., encourages them to remain active customers.
- Seeking Feedback: Regularly requesting feedback and acting on it not only makes customers feel valued but also gives businesses insights into areas for improvement.
Website retention rate
The website retention rate[8], also known as visitor retention rate, is a key metric used to assess the effectiveness of a website in keeping visitors engaged and returning over a specific period. It provides insights into how well a website retains its audience, which is a crucial factor for online success. The retention rate is typically expressed as a percentage and indicates the proportion of visitors who continue to interact with the website after their initial visit. A high website retention rate suggests that visitors find the content, user experience, and value provided by the website compelling enough to return, while a low retention rate might indicate that improvements are needed to keep visitors interested.
Monitoring the website retention rate is essential for optimizing user experience and content strategy. By analyzing the behaviors of returning visitors[9] and identifying patterns, website owners can tailor their content to better match their audience's preferences and needs. Factors contributing to a strong retention rate include relevant and valuable content, user-friendly navigation, personalized experiences, and prompt responses to user feedback. Ultimately, a high website retention rate not only enhances the user experience but also contributes to increased brand loyalty, higher conversion rates, and sustained growth for online businesses.
User engagement
User engagement refers to the level of interaction, involvement, and connection that individuals have with a particular platform, product, or content[10]. It serves as a fundamental indicator of how effectively an entity is capturing and retaining the attention and interest of its audience. User engagement encompasses a variety of interactions, such as likes, comments, shares, clicks, time spent on a website, or the depth of interaction with an application. It's not just about passive consumption but also active participation and the emotional connection users develop with the offered content or experience.
Businesses and platforms across various industries strive to enhance user engagement as it directly correlates with key performance metrics and success factors. High user engagement typically leads to longer session durations, repeat visits, and a sense of community and loyalty among users. Companies often employ strategies like personalization, gamification, and interactive features to drive user engagement. By fostering meaningful interactions and catering to users' preferences and needs, organizations can create a more immersive and valuable experience, which, in turn, translates into improved brand perception, higher customer satisfaction, and ultimately, better business outcomes.
An important aspect of accurately measuring user engagement lies in choosing the appropriate frequency for product engagement. When considering the right frequency for your product's engagement metrics, you can ask yourself: "Does a user of my product need to engage daily, weekly, or monthly to be considered active (or possibly longer for certain products)?". Measuring retention and engagement with the wrong cadence can deceive you into thinking that your product has good retention when it actually doesn't.
Chances are that the frequency for your product is fairly intuitive, but there's also a systematic way to approach this with data if you want to validate your work:
- Filter users by some type of minimum engagement threshold
- Look at the past 30 days of product event data[11]
- Calculate how many days each user returned during that period
- Visualize the results in a histogram and identify clusters
If you see the most significant cluster of people returning < 3 days, lean towards a monthly frequency. Similarly, if most return within 3-10 days, weekly is preferable, and 10+ days indicate daily is best. I would trust your intuition and your understanding of the problem you're solving, but this exercise can be helpful as validation.
Retention KPI
When delving into Retention KPIs, the frequency aspect is just the beginning, with the behavior you're optimizing for constituting the next crucial puzzle piece. Drawing from our experience, we've found that this step often poses the greatest challenge.
Our recommended approach centers on identifying the pivotal behavior that signifies the realization of value within your product. Ideally, you should have identified that transformative moment when users truly grasp your value proposition. If this hasn't been pinpointed yet, there's no need for excessive concern; these insights can be uncovered. Concrete examples can be particularly illuminating:
- Uber: Booking a ride
- Facebook: Engaging with the news feed
- Slack: Sending messages to others
- Notion: Creating a new note
- Airtable: Logging a data point
Given our affinity for data-driven insights, there exists a more systematic method to determine this core behavior. After brainstorming a handful of actions that might mark value-realizing instances, you can harmonize them with the established frequency and then visualize retention curves[12] for each of these behaviors.
Retention strategies
Retention strategies are the carefully crafted approaches that businesses employ to retain and engage their existing customers over the long term. These strategies aim to strengthen the bond between the customer and the brand, ultimately enhancing customer loyalty and lifetime value. Successful retention strategies go beyond mere transactional relationships, focusing on delivering consistent value, personalized experiences, and excellent customer service.
One common retention strategy involves enhancing the customer experience through personalization[13]. By tailoring products, services, and interactions to individual preferences and needs, businesses can make customers feel valued and understood. This personal touch fosters a sense of loyalty, as customers are more likely to stick around when they feel a strong connection to the brand.
Additionally, loyalty programs[14] and rewards systems incentivize repeat purchases and engagement, providing customers with tangible benefits for remaining loyal.
Communication is also a pivotal aspect of retention strategies. Regular engagement through targeted emails, newsletters, and notifications keeps customers informed about new offerings, updates, and promotions, thereby maintaining their interest and involvement. Moreover, actively seeking and responding to customer feedback demonstrates a commitment to improvement and shows customers that their opinions matter. Ultimately, successful retention strategies involve a combination of understanding customer needs, building strong relationships, and continually adapting to deliver value that keeps customers coming back.
Appendix: Retention metrics
Retention metrics are the quantifiable measures used to assess the effectiveness of a business's efforts in retaining its customers over a specific period. These metrics provide valuable insights into customer loyalty, satisfaction, and the overall health of a company's relationship with its clientele.
Common retention metrics include customer churn rate, which quantifies the percentage of customers who stop using a product or service within a given timeframe, and customer retention rate, which reflects the percentage of customers who continue to engage with the brand over time. These metrics enable businesses to evaluate the success of their retention strategies, identify areas for improvement, and make informed decisions to enhance customer loyalty and long-term profitability.
Churn rate calculation
The calculation of churn is a simple formula[15]. Take the number of customers you lost in the previous period (such as the quarter) and divide it by the number of customers you started with in the same period (quarter). The resulting fraction is your churn rate. Multiply by 100 to express it as a percentage.
Formula
(lost customers/starting customers) * 100 = churn
Examples
(10/250) * 100 = 4%
(1644/11734) * 100 = 14%
(46/9212) * 100 = 0.5%
For instance, if your company had 250 customers at the beginning of the month and lost 10 customers by the end, you would divide 10 by 250. The answer would be 0.04. You then multiply 0.04 by 100 to get the percentage, resulting in a churn rate of 4%.
Note
In the example above, we calculated churn rate as a percentage of lost customers, but there's more than one way to calculate churn. You can calculate churn based on:
- Number of customers
- Value of lost recurring contracts
- Percentage of lost recurring revenue
What is a good churn rate
Benchmark data from Lenny Rachitsky11 and Ryan Law12 provide us with a clear picture of what constitutes good churn and really good monthly churn, segmented accordingly[16].
| Good | Really Good | |
|---|---|---|
| B2C SaaS | 3-5% | < 2% |
| B2B Small/Medium Businesses | 2.5-5% | < 1.5% |
| B2B Large Enterprises | 1-2% | < 0.5% |
- For B2C SaaS: Between 3% and 5% churn per month is good, and less than 2% is really good
- For B2B Small & Medium Businesses (SMB): Between 2.5% and 5% is good, and less than 1.5% is really good
- For B2B Large Enterprises: Between 1% and 2% is good, and less than 0.5% is really good
Definitions
For B2C SaaS: Subscription products sold to consumers; e.g. Duolingo, Spotify, Grammarly.
B2B Small/Medium Businesses (SMB): Subscription products primarily sold to companies with fewer than 1,000 employees, generally charging less than 10,000 SEK per month for the average customer; e.g. Gusto, Intercom, Airtable, Asana.
B2B Large Enterprises: Roughly defined as subscription products primarily sold to companies with more than 1,000 employees, generally charging more than 50,000 SEK per month for the average customer; e.g. Salesforce, Snowflake, Workday, ADP.
What is lifetime value (LTV)?
Lifetime Value – abbreviated as LTV – is the total value per customer for a business over the entire duration of their relationship. It is an important metric because retaining existing customers costs less than acquiring new ones – increasing the value of your existing customers is simply a good way to drive growth.
Knowing LTV helps companies develop strategies to acquire new customers and retain existing ones while maintaining profit margins.
How to calculate Lifetime Value?
The simplest formula for calculating Lifetime Value is:
Formula
(customer revenue * duration of the relationship) – customer acquisition cost = LTV
This formula is suitable for situations where the numbers are likely to remain relatively unchanged from year to year.
Note
This is an example of historical Lifetime Value – a variant that looks back at past events. You can also calculate predictive Lifetime Value/LTV. This is an algorithmic process that takes historical data and uses it to make an intelligent prediction about how long a customer relationship is likely to last and what its value will be.
How to calculate CLV?
CLV, also known as Customer Lifetime Value, is the same as LTV or Lifetime Value. It is calculated in the same way.
Example
800 * 4 = 3200 USD in CLV (revenue)
800 * 4 * 0.2 = 640 USD in CLV (profit)[17]
800 * 4 = 3200 USD in CLV (revenue)
800 * 4 * 0.2 = 640 USD in CLV (profit)
In our example, the average sale in a clothing store is 800 USD, and on average, a customer makes 4 purchases during their lifetime. The lifetime value is calculated as CLV = 800 x 4 = 3200 USD over the duration of the relationship.
However, if we factor in the cost of customer acquisition and the cost of serving the customer (personnel, materials, etc.), there is less left. If the profit margin in our clothing store is 20%, it means that the cost of customer acquisition and serving the customer is 80%.
Therefore, our CLV in profit currency becomes: CLV = 800 x 4 x 0.20 = 640 USD.
How much is a customer worth?
This is how you calculate how much a customer is worth to your company:
- Start with your company's total revenue from the past year and divide it by the total number of purchases during the same period. The resulting number is your average purchase value.
- Then take your total number of purchases from the past year and divide it by the number of unique customers who made purchases. The resulting number is your average purchase frequency.
- Take your average purchase value and subtract the average purchase frequency from it. This gives you the customer value per year.
- Calculate the average number of years a customer continues to make purchases from you. If you have tracked unique purchases, this shouldn't be difficult. This number is the average customer lifetime - lifetime value.
- Now, multiply the customer value by the average customer lifetime to get the lifetime value for your customer.
- Now you know what a customer is worth to you!
How do you measure customer satisfaction?
There are 3 ways to measure customer satisfaction[18]: CSAT, CES, and NPS.
All of these 3 methods involve single-question approaches that significantly simplify the process of gathering customer insights and satisfaction. While you might not think that the survey method matters that much, there's a significant difference in how you phrase the question.
Let's take a closer look at each of the different methods.
What is CSAT? (Customer Satisfaction Score)
Customer Satisfaction Rating, or Customer Satisfaction Score (CSAT), on average measures how satisfied or dissatisfied customers are with your product, service, or customer support. Customer satisfaction is calculated by summing up the total of all scores and dividing the total by the number of respondents.
CSAT is one of the most widely used metrics for measuring customer satisfaction. You ask your customers to rate their satisfaction on a linear scale. Your scale can be 1-3, 1-5, 1-7, or 1-10, and there's no general agreement on which scale is best to use.
CSAT is a measure used to instantly evaluate a customer's specific experience, simply put.
Think of it as a transactional metric based on what's happening right now for a user – whether they're satisfied with your product or service. Try to capture CSAT scores as soon as possible after an interaction, for instance, within 15 minutes. It should be one of the key metrics for evaluating customer service performance.
What is CES? (Customer Effort Score)
Customer Effort Score (CES) is very similar to CSAT, but instead of asking how satisfied the customer was, you ask them to rate how effortless their experience was.
You're still measuring customer satisfaction, but in this way, you're measuring the user's effort – the assumption being that the easier a task is, the better the experience becomes. Turning an experience into a low-effort one is one of the best ways to reduce frustration and disloyalty.
What is NPS customer satisfaction? (Net Promoter Score)
NPS asks the question, "How likely are you to recommend this company to a friend or colleague?".
You calculate your Net Promoter Score, NPS, by subtracting the percentage of "detractors" from the percentage of "promoters". This measures customer satisfaction as well as customer loyalty. By doing so, you can get an overall score, but you can also segment your responses into three categories: "detractors," passive, and "promoters".
NPS is often used as a general indicator of customer loyalty and brand devotion. Most organizations that implement NPS measurements also develop strategies to manage the results and enhance NPS.
What is NPS survey?
An NPS survey is a communication sent to customers with the question of whether they would recommend the company, providing a rating on a scale of 0 (not likely at all) to 10 (extremely likely). Depending on their responses, they fall into one of three categories to determine an NPS score:
- Promoters respond with a score of 9 or 10 in the NPS survey and are usually loyal and enthusiastic customers.
- Passives respond with a score of 7 or 8 in the NPS survey. They are satisfied with your service but not satisfied enough to be considered Promoters.
- Detractors respond with a score of 0 to 6 in your NPS survey. These are dissatisfied customers who are unlikely to purchase from you again, and they might even discourage others from doing business with you.
How to measure NPS?
This is how you measure NPS:
NPS Formula
% promoters - % detractors = NPSNPS Example
Let's say you received 100 responses to your NPS survey:
- 10 responses fell within the range 0–6 (detractors)
- 20 responses fell within the range 7–8 (passives)
- 70 responses fell within the range 9–10 (promoters)
When you calculate the percentages for each group, you get 10%, 20%, and 70% respectively.
To calculate your NPS, you subtract 10% (Detractors) from 70% (Promoters), which equals 60%. Since an example of Net Promoter Score is always displayed as a whole number and not a percentage, your NPS is simply 60. And yes, you can have a negative NPS because your score can range from -100 to +100. However, it should be noted that a negative score is truly not a good NPS[19].
70% promoters - 10% detractors = 60 NPS scoreHow to measure eNPS?
eNPS (Employee Net Promoter Score) is measured in the same way as regular NPS. The difference between NPS and eNPS is simply that it inquires about employee satisfaction instead of customer satisfaction.
Employee Net Promoter Score, eNPS, is, in other words, a part of Net Promoter Score (NPS) developed by Fred Reichheld, Bain & Company. Organizations use eNPS to determine how willing their employees are to recommend their employer to others.
Calculating eNPS is straightforward. The percentage of detractors is subtracted from the percentage of promoters (see the formula below). The percentage of passives is not included in the calculation of the score. Your score can range anywhere between -100 (all employees are detractors) and +100 (all employees are promoters).
% promoters - % detractors = eNPS
Multi-Strategy Retention: 120+ User Retention Tactics
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