NPS: Measuring Merchant and Customer Satisfaction

At Koalafi, we're thrilled to share that our merchant Net Promoter Scores (NPS) ranks in the top 99th percentile among consumer finance companies tracked in Delighted, and our customer NPS ranks in the top 82nd percentile¹.

We regularly measure our merchant and customer net promoter scores, which we use as an indicator of how satisfied our merchant partners and customers are with Koalafi. We see merchant and customer satisfaction as a non-negotiable if we want our merchants and customers to truly feel we are invested in their success.

But what exactly is NPS, and why do we place such importance on it?

Net Promoter Score, or NPS, is a widely used metric that measures the likelihood of customers to recommend a company's products or services to others. It's calculated based on responses to a single question: "On a scale of 0-10, how likely are you to recommend Koalafi to a friend or colleague?" This simple yet powerful metric provides valuable insights into customer satisfaction and loyalty. At Koalafi, we track NPS regularly because it helps us identify areas where we excel and areas where we can improve.

So, what are our customers and merchants saying? Let's dive into the key themes from our promoters.

From our customer promoters:

• Make important purchases possible: Our customers appreciate how our financing plans made important purchases, like safe tires so they can get back on the road or new furniture for their kids' room after a divorce, possible.

• Offer fair terms: Our customers mentioned how we were upfront about pricing, so there were no surprises. Many customers also appreciated that the early purchase period gave them payment flexibility at a very affordable price.

• Report to a major credit bureau: Many non-prime customers want to improve their financial situation. They appreciate that by reporting to TransUnion, we give customers the opportunity to improve their credit scores.

From our merchant promoters:

• Collaborative partner: Merchants recognize us for the care and attention of our support teams and for bringing new solutions to the table to help our partners overcome challenges.

• Increase sales: Merchants mention our high approval rates and approval amounts help them increase conversion rates and average ticket sizes, resulting in more sales and new customer relationships.

• Take care of their customers: Merchants frequently cite ease of use, transparency of costs, and convenient customer support as ways we support their customers.

While we take pride in the feedback from our promoters, we also recognize that there's always room for improvement. We closely monitor feedback from our detractors to identify pain points and ensure that we continue to meet our merchants' and customers' evolving needs.

At Koalafi, our values, including “focus on what’s most important” and “ask how this can be better,” are at the core of everything we do. Tracking NPS is just one way we live those values and hold ourselves accountable to delivering our mission to offer inclusive financial products that help merchants and customers succeed.

¹As of May 2024, based on Delighted industry benchmark reports. Consumer finance companies include Industry includes HSBC, U.S. Bank, Discover, Wells Fargo, Citigroup, American Express, Chase, Barclaycard, Bank of America, Capital One, and USAA. Software companies include Adobe, Microsoft, Google, Intuit, Sony, McAfee, Activision, Apple, Symantec, and Blackboard.