What is NPS Score and why should I care
September 2, 2017
September 2, 2017
The largest cost to any business is attracting customers. This cost comes in many ways including marketing, sales, and development of new features. After effort from all teams, you are able to land a trial user into your platform. Now it is up to your sales and support teams to convert this lead into a paying customer which again are added costs that go into your overall cost of acquisition calculation. After working across the teams you all high five when the customer signs up on a job well done.
Unfortunately this is not the end of the road. Churn is one of the largest issues for many SaaS companies especially those that target low cost solutions and depending on the industry. Knowing the satisfaction of your customers on a normal basis is critical to the success of not only your customers, but your company as a whole. This is where NPS Score comes in.
NPS which stands for Net Promoter Score allows you to engage your customers on a normal basis with a simple survey question: How likely are you to refer our company to a friend. Based on this survey which allows them to select between a score of 0 and 10, you can tell if the customer falls into one of three buckets.
Promoters: Which will give you a score of 9 or 10.
Neutral: Which will give you a score of 7 or 8.
Detractors: Which will give you a score between 0 and 6.
Based on the results, you can also give them the ability to provide specific feedback along with the survey to get more insight about their score. What the results of this survey does for you is allow you to turn your promoters into champions and work with them on case studies or reviews. It allows your customer success teams to engage your detractors and neutral customers to avoid Churn and increase the overall health of your customer base.
Additionally, the feedback they provide you gives you additional customer driven requests on what challenges they are facing in the software to add updates to your road map to improve customer satisfaction.