So you’ve been reading up on Net Promoter Score. Your colleagues in the SaaS world tell you that it’s the best way to take your customers’ pulse. You’ve seen a few case studies claiming it’s the only number you need to measure.
It’s true that Net Promoter Score is a great way to engage with your customers and solicit tons of feedback. But it’s also true that there are quite a few nuances that result in successful surveys.
As a SaaS company with a number of SaaS customers, we have a unique perspective on NPS in the software world. To make the most of your time and energy, we’ve put together this list of things SaaS businesses should know before they dive into the NPS world.
Have questions? Feel free to drop them in the comments. You can also check out our demo account to get a feel for the platform.
1. Create user segments for business critical insight.
Don’t let your NPS data turn into a dusty pile of unused information. It’s a no brainer to segment based on their feedback (Promoters, Passives, Detractors.) But the real power comes from additional segmentation by metrics that are important to your business. For example, if you have tiered pricing plans, segment your users based on those plans. One of our SaaS customers has two unique user types, and discovered that while his overall NPS was strong, there was a big discrepancy in score and sentiment between these two distinct user types. This valuable insight helped him focus his energy on the right users.
By slicing and dicing the data, you’ll be able to identify opportunities for better marketing and potentially predict (and prevent) churn. The New York Times is using similar data to target subscribers who are at a high risk of leaving. The MIT Technology Review is right when they say, “The success of many companies increasingly depends on how wisely they can mine data about their customers’ behavior and respond accordingly.”
2. Ask targeted follow-up questions.
In addition to asking for a numerical rating, you can (and should!) also ask for more information. Simplicity is at the core of NPS philosophy so plan your follow-ups accordingly. Prepare a single automated follow-up question for each group.
Here are some suggestions:
- Promoters: What’s your favorite part about our product/service?
- Passives: What would make you love us?
- Detractors: What could we do to improve your experience?
The follow-up question needs to extract feedback that you can use to turn detractors and passives into promoters, and promoters into referrers.
3. Complement hard data with anecdotal findings.
You’re investing in NPS for more than a score.
At the end of your first survey, you’ll have a single number you can point to but you’ll also have a ton of anecdotal data to internalize. How do you balance the quantitative data and the qualitative data?
Here are my thoughts (which originally appeared on the Preact blog):
Actions together with emotions are a powerful combo. That gut ‘voice of customer’ reaction complements all the behavioral tracking. And — perhaps more importantly — a ton of insight comes from the open feedback provided along with the NPS score.The qualitative feedback enhances and perhaps may even help explain in-product activity (if not uncovering new sources of satisfaction/dissatisfaction not visible behind the scenes.)
You cannot possibly automate the entire process and still glean all the valuable nuggets of information buried in customer comments and follow-up emails. SaaS companies love optimization but don’t get carried away. One of the biggest advantages of NPS is unlocking the customer’s voice.
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