Zoom’s NPS Score: The Secrets Behind Its Customer Success
by Sabrina Tessitore
The video conferencing platform, Zoom, shot to mainstream prominence during the early days of the covid-19 pandemic—and has grown its user numbers by 2900% since.
While the software brand now boasts 300 million daily users, it’s not just quantity that matters.
Zoom'z NPS score is 72 (vs the SaaS industry average of 36) which shows that the company’s customers are exceptionally enthusiastic—and loyal, too.
How has Zoom done it?
Let’s explore all you need to know about Zoom’s NPS customer experience (CX). The bottom line is that Zoom has always put its CX first, through product excellence, continual innovation based on customer feedback, and a dedicated customer success team.
So, what is Zoom’s NPS score? We’ll get there in a moment. But first, let’s remind ourselves what NPS is all about.
What is Net Promoter Score?
Net Promoter Score, or NPS, is the one of the most important metrics that companies use to measure their customer experience. In short, if you want to understand how your customers feel about your brand, you’re going to want to measure NPS.
That’s easy even if you have a customer base as large as Zoom’s. Measuring NPS is straightforward and scalable, and it provides an accurate insight into what your customers think.
At root, NPS investigates whether your customers are generally promoters—namely, customers that are enthusiastic about your brand—or else detractors. These are the people that are least satisfied and most likely to churn.
How to find this out? With the NPS question:
On a scale from 0 to 10, how likely is it that you would recommend our company/product/service to a friend or colleague?
On this scale, detractors are those that give a score of 0-6, while promoters give a score of 9-10.
It goes without saying that your number of promoters should be higher than those of your detractors. To get your overall score, you need to subtract the percentage of detractors from the percentage of promoters. For example, if 50% of your customers are promoters and 10% are detractors, you’ll have a NPS score of 40.
So, let’s see how Zoom do:
What is Zoom’s NPS score?
According to the company’s own most recent announcement, Zoom’s NPS score is 72. This is a stellar result—but it is from way back in 2017, before the brand’s incredible growth.
As is well known, Zoom has a huge number of demanding customers—including 58% of the Fortune 500 and as much as 96% of the top 200 US universities. But the important thing is that these customers stick around:
According to one commentator, Zoom has a 12-month dollar retention rate of 130%—meaning that customers don’t just stay, but they typically spend more than they did a year ago.
This is helping the brand boost its bottom line. Zoom is seeing revenue growth at a rate of 53% year on year
And the brand is publicly recognized for its CX. It has won the Gartner Peer Insights Customers’ Choice award for consecutive years, and it has top G2 Scores in every category in which it’s listed.
But how does Zoom’s NPS stack up alongside other brands?
Is Zoom’s NPS Score Considered Good?
Whichever set of data you look at, Zoom’s NPS score is undoubtedly excellent.
Typically, it’s said that any score above 0 is good—as that shows you have more promoters than you have detractors. That’s a great start. Anything above 50 is considered excellent, while 80 and above is market-leading. Zoom’s reported score of 72 is really quite something.
But, crucially, not every industry is the same—and what makes a great score in one industry may be less impressive elsewhere. You can find out the typical benchmarks for your own industry’s performance in CustomerGauge’s annual NPS benchmark report.
But having said that, the most important NPS benchmark for you right now will always be your result from last year. If you’re seeing that needle move, you’re heading in the right direction.
Learn more: What is a good NPS score?
A Note on Monetized NPS
While NPS is a crucial metric for tracking customer experience, it doesn’t give you the whole picture. Instead, many brands are beginning to use their NPS score to link their CX data to their revenue.
That’s what Account Experience is all about. Account Experience introduced monetized NPS to the Net Promoter Program. The methodology allows you to see the value of the customers that are most likely to churn and to identify customers ready to grow their annual revenue.
Let’s take an example from Zoom. According to data, over 1,600 of Zoom’s business customers are paying over $100,000 a year—contributing 18% of the company’s quarterly revenue. Meanwhile, it has 88 customers contributing more than $1 million in revenue.
Of course, it matters much more if these high value accounts are detractors that are at risk of churn. But you won’t know that unless you’re ready to monetize NPS.
How Does Zoom’s Net Promoter Score Compare to Other SaaS Companies?
According to CustomerGauge’s report on SaaS benchmarks, the median NPS score for SaaS companies is 36. Whichever way you look at it, Zoom is really outperforming its rivals.
Here’s a deeper look at how SaaS brands are performing:
Zoom NPS score: 72
Paypal NPS score: 65
Slack NPS score: 55
Adobe NPS score: 33
Zoom Customer Loyalty: What Factors are Driving Zoom’s NPS Score?
So, what is Zoom doing to create such enduring customer satisfaction?
Providing an Excellent Product
Zoom has always been committed to creating the best product possible. According to the company, that has meant three main things:
A product as frictionless as possible. Rather than clumsy setup and configuration, Zoom wanted to make video conferencing seamless, for the benefit of their user experience.
Reliable. Not every customer in the world has a high-speed internet. But the thing about Zoom’s product is that it works even with lower quality connections. This makes it great for all customers.
Improving the product based on customer feedback. In 2021, the majority of Zoom feature updates were made in response to direct feedback from customers—showing that the company really listens to what customers have to say.
Award-Winning Customer Service
Zoom claims that its “core value” is customer happiness. And transparency is at the heart of how they make this a reality—communicating every change that affects customers.
Discussing Zoom’s strategy for customer success, CEO Eric Yuan recently had this to say in an interview:
“Look at growth from a customer’s perspective. Solicit their feedback, talk with them, understand their pain points, and then think about things you can do differently to add more value to customers. Then you can drive up growth.”
Closing the Loop
Everyone in the company is ready to close the loop with customers. In fact, even the CEO claims to jump on customer calls every single day. Similarly, the head of Zoom International, Brian Shore, says that he personally responds to every piece of negative feedback.
But that means nothing if you’re not doing it fast. At Zoom, the company’s internal chat technology allows frontline employees to reach out to technicians to receive immediate support, which they can deliver to employees.
Happy Employees
According to Comparably, Zoom was the global company with the happiest employees in 2020. Employees at the brand say they are satisfied with the compensation, they feel invested in the company goal, and they would recommend the company to a friend.
This should be a lesson: to ensure optimal customer experience, brands should focus on their employee experience too.
Improve Your NPS to Drive Business Growth
At CustomerGauge, we can help you drive your NPS score—and grow your revenue along with it. Book a demo to find out more.
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