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How To Really Benefit from Running an NPS ProgramMay 2, 2018
Written and contributed by Michael Nadelman, Customer Success @ Qualaroo
Net Promoter Score is an excellent metric to determine how your customers or users really feel about your company. In fact, there’s a positive correlation between NPS and 20-60% of a company’s organic growth. However, if you choose to look closely at your score, you stand to gain more than a benchmark statistic. The reasoning behind each individual score that contributes to your overall NPS can help explain where you are succeeding, and where you can improve.
Building and launching your NPS program is 25% of the work but to really gain the greatest return on time and resource investment, responding to the feedback is key. With this in mind, here are 3 important steps to help guide your NPS campaign creation and maximize the potential benefit.
Define your NPS Goals
When answering this question, consider how you intend to use the data that you’ll collect.
Do you simply intend to use your NPS as a thermometer for customer satisfaction, or are you committing to retrieve actionable feedback that allows you to make impactful change?
Determining specific goals will help you dictate which strategies you implement. If you are dedicated to growing your company, consider using the feedback you gain to understand where things are going right, and where they aren’t. Once your NPS feedback has helped to identify your perceived strengths and weaknesses, you have a stronger sense of where change will have the most impact.
Determine your Cohorts
Determining who you intend to ask for feedback is crucial for preparing an effective strategy. Whether you are asking your entire user base, or segmenting your audience based on the services they use, you have to come to a decision about who is going to own this feedback.
Take a customer’s life cycle for example. One population’s life cycle might vary from another, and understanding this disparity will help you ask for feedback at the right time and avoid over surveying. While a 6-month NPS interval can work well for annual users, it might not be the best option for quarterly users. If a quarterly user leaves after three months, they will never have the chance to provide feedback–a user who leaves so soon can provide valuable insights into why, such as they were unhappy or their needs were not being met. Conth NPS interval might feel over-surveyed.
Take it a step further, personalize your surveys to your particular segments. While avoiding bias is key regarding Net Promoter Score, personalizing the follow-up message can increase your response rate and garner more focused responses. For example, your follow-up question might contain verbiage reflecting the particular service they’re using exclusively.
For more information on personalizing your message, check this post out
Close the Feedback Loop
Each response you gather is an opportunity to connect with your customers and ideally push them up the scale towards being a Promoter or if they’re already a Promoter, to be a key referrer. While reaching out to each customer who gives you feedback may be time consuming, it’s arguably the most important aspect of Net Promoter Score.
Conveying to a customer that you hear them and that you are using their feedback to improve their experience is one of the quickest ways to win them over. Furthermore, following up with your customers allows for them to go into further depth about their opinions and the change they would like to see.
Detractors. For every detractor received, you can have this response automatically routed to your customer success Slack channel for immediate response. Check out this article on how to set it up.
Passives. Passives don’t dislike you but they’re also not you’re biggests fans. Usually it has to do with a lack of service or feature. You can automatically funnel data to your product team for feature discovery.
Qualaroo’s Zapier integration can allow you to send your feedback to the appropriate team, ensuring that the loop is closed in a timely manner. If done correctly, closing the loop with your customers can turn Detractors and Passives into Promoters.
Promoters. This is a perfect opportunity to create referrals. Automatically send this data to your sales or marketing team to reach out for case studies, enter into a referral program or additional reviews on 3rd party sites.
By breaking up the Detractors, Passives and Detractors, you’re not only saving time and resources but you’re involving the entire organization to be a part of your NPS program. Having participation from every department increases your chances of success.
If done correctly, leveraging Net Promoter Score can help your company cultivate a competitive advantage. More importantly, it can create happier, more loyal clients. If your customers have done you a favor by telling you what they really think, make sure to return it! Implementing a strategic NPS program is the quickest route to uncovering the ‘why’ behind your users’ decisions.
You probably have a firm grasp on some of the universal metrics of SaaS success: ARR, growth rate, churn rate, CAC, LTV, etc. There is no doubt that these are critical, but in many ways these metrics do not tell the whole story of “success”. So what’s the leading indicator that can give you a fuller picture of success? Your customers’ satisfaction.
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