Robert Statsky

NPS Strategy

So what are your thoughts on NPS?

There is so much content on this topic. I won’t go into detail on how to action a strategy around it. I’ll leave that for Chat GPT at the bottom. You can follow that if you’re looking to start from scratch or if you’ve never heard the term before.

That said, I like NPS or at least the idea of NPS. I think its a great tool in your tool box and its an industry standard. I think its a great temperature check, and a great way to get a sense of what is going on. It’s standardized the question is all encompassing at this point in time, and its a good way to standardize how you get feedback from your customers without having to put much thought into how to design a survey.

Here’s what I don’t like about it

  • It’s too simplistic in what it is asking.
  • Many people only fill it out when they are angry
  • I don’t trust benchmarks. I have been involved with multiple organizations that ONLY survey happy customers (customers that haven’t complained, have high healthscores, high usages, no support tickets, etc.)
  • It doesn’t tell you everything, especially if you don’t get an additional comment with it.
  • It does not always correlate to higher or lower churn.

So should I collect it or not?

Yes, you should collect NPS and engage with people who are leaving you responses there. It is important to do so, but do not make it your entire strategy for customer feedback, voice of customer programs, or your be-all end-all on the overall sentiment of your customer base.

As always, here is what Chat GPT had to say:

Developing a comprehensive strategy for collecting, analyzing, and actioning Net Promoter Score (NPS) is crucial for understanding customer satisfaction and driving improvements. Here’s a detailed strategy:

1. Establish Clear Objectives:

  • Define the objectives behind collecting NPS. This could include measuring customer satisfaction, identifying areas for improvement, and understanding customer loyalty. Ensure alignment with broader business goals.

2. Design a Thoughtful NPS Survey:

  • Develop a concise and well-crafted NPS survey that includes the standard NPS question (“How likely are you to recommend us to a friend or colleague?”) along with additional questions to gather qualitative feedback. Keep the survey short to encourage participation.

3. Determine Survey Timing:

  • Strategically time NPS surveys to capture feedback at key touchpoints in the customer journey. This might include post-onboarding, after major feature releases, or during renewal periods. Avoid survey fatigue by spacing out requests.

4. Collect Feedback Across Channels:

  • Utilize multiple channels for NPS collection, including email, in-app messages, or customer portals. Consider diverse touchpoints to capture feedback from various customer segments and interactions.

5. Implement a Closed-Loop Feedback Process:

  • Establish a closed-loop feedback process to respond to customers who provide low NPS scores. Quickly address their concerns, gather additional details, and take proactive steps to resolve issues. This demonstrates a commitment to customer satisfaction.

6. Segment and Analyze Data:

  • Segment NPS data based on customer characteristics (e.g., customer type, industry) to identify patterns. Analyze trends over time to understand changes in customer sentiment. Look for correlations with specific interactions or product features.

7. Integrate NPS with Customer Data:

  • Integrate NPS data with other customer data sources, such as usage analytics, support tickets, and customer success interactions. This holistic view provides a comprehensive understanding of customer sentiment and behavior.

8. Identify Key Drivers:

  • Determine the key drivers influencing NPS scores. Use advanced analytics to identify correlations between specific aspects of the customer experience (e.g., product features, support interactions) and overall satisfaction.

9. Collaborate Across Departments:

  • Foster collaboration between Customer Success, Product, Sales, and Support teams. Share NPS insights across departments to collectively address issues and drive improvements. Cross-functional alignment is crucial for success.

10. Set Actionable Targets:

  • Define actionable targets based on NPS benchmarks and industry standards. Establish realistic goals for improvement and monitor progress regularly. Celebrate achievements and continuously raise the bar for customer satisfaction.

11. Implement Customer Success Initiatives:

  • Use NPS insights to inform and prioritize Customer Success initiatives. Identify areas for enhancement in onboarding, training, support, and product development. Align these initiatives with customer needs and expectations.

12. Customer Advocacy Programs:

  • Leverage high NPS scores to identify potential advocates. Encourage satisfied customers to participate in case studies, testimonials, or referral programs. Harnessing positive feedback can contribute to brand credibility and attract new customers.

13. Measure Impact on Retention and Growth:

  • Assess the impact of NPS improvements on customer retention and expansion revenue. Track the correlation between rising NPS scores and increased customer lifetime value. Use this data to demonstrate the business impact of customer satisfaction.

14. Continuous Improvement:

  • Iterate and refine the NPS strategy based on ongoing feedback and results. Regularly revisit survey questions, distribution methods, and the overall approach to ensure relevance and effectiveness.

By implementing this strategy, you can effectively collect, analyze, and action NPS data to enhance customer satisfaction, loyalty, and overall business success.

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