|Marketing||– 15 min read –||June 18, 2018|
How To Fit NPS Into Your SaaS Customer Lifecycle
SaaS businesses, specifically, can leverage the features offered by such NPS services, to fully automate the process of customer feedback collection, and in turn, reveal important insights of further use for improving their product, increasing customer retention and reducing churn.
In this article, we're going to explore how NPS can be implemented in a typical SaaS business customer lifecycle and the deriving benefits.
What is Net Promoter Score?
Net Promoter Score is a customer satisfaction metric that asks respondents to give a score on a scale of 0 to 10, segmenting them into three groups based on their rating. The NPS question is usually followed up with an open-ended query on the reason behind the given score.
Ideas on additional product features will also follow since there is no other adviser better than your client. NPS is one of the most useful startup metrics you can track and improve by taking action. To enforce the above mentioned let's go into more detail and dwell on the undoubtful advantages that might compel you to implement NPS in your SaaS company.
NPS surveys based on customer lifecycle stage
The customer lifecycle offers a clear understanding of when you need to survey your customers. Send NPS surveys after important events in the customer lifecycle, and gather different but equally essential feedback.
Highly important is the timing of the survey. Send a survey neither too early nor too late. Trial customers don't have a fully formed opinion in the first few days. In addition, they are clearly not interested in your product if they decided not to pay for a subscription. So make sure to ask for feedback when appropriate.
Close the loop with trial customers, and offer them a solution when possible. Sometimes, they are simply not aware that your product offers a particular feature they wanted or don't know how to use your product. Onboarding issues are solved with an honest and helpful reply, redirecting them to your help center or setting up a demo call.
Sending NPS surveys once in 3 to 6 months is especially advisable if improvements of your SaaS product rarely occur. The interaction needs to be maintained throughout the customer journey. Set up time-based recurring campaigns to check if your clients' satisfaction has changed throughout the product development process and realign your priorities accordingly. The received feedback will also give you an idea of where you stand in the crowd of competitors.
To get an additional boost in responses, send a new survey to customers who haven't opened it the first time or left a score but haven't offered any qualitative feedback. Some NPS services will allow you to use a different survey template for the second attempt.
Choose the right channel for your business, the widespread but still the more personal email or the intrusive in-app to connect with customers and learn if your product offering meets their needs and how you can better shape their experience. Experiment with the two to see which one fits better your purposes.
Major product update campaign
Once again NPS becomes handy. Run a campaign after a major product update to find out how your customers feel about it and how useful it turned to be. There is no business asset more reliable than customer insight, especially when it elicits improvement feedback. In this respect, NPS puts considerable confidence behind your product decisions. Judging by the gauged sentiment after the update announcement you can get a feeling of its impact on customer satisfaction.
Once you adapt your SaaS product based on the received inputs, make sure to follow up with the people generating the ideas. Let them know that their suggestions were taken into account and their insights are highly valued.
Long-term subscription expiry campaign
This is the moment when subscription renewal campaigns come up front. Sending out NPS surveys 30 days before a yearly subscription renewal date will help you understand how clients feel about your product and, in case they are not fully pleased with it, what can be done to earn their trust for another year.
Brands that value their clients are always rewarded with loyalty. Increase your chances to be chosen over your competitors by going an extra mile to build a long-lasting bond with your customers.
If the survey is sent immediately after a specific interaction, you are most likely to get a consistent understanding of what exactly caused a positive or negative change in sentiment and thus how to use the opportunity to nourish it or fix the unpleasant experience as soon as possible.
The efficiency of transactional campaigns is undoubted, but overwhelming clients with bulks of surveys is not a wise idea as well. So how do we get to determine which touch points in your business are a priority and deserve most of your time and effort? By correlating the received feedback with your customer journey you can determine which touch points need more attention. Look into the failing ones and start improving them in order to ensure a most pleasant customer experience during the entire journey.
You will be surprised of the unlocked loads of actionable insight allowing you to quantify and prioritize the causes of churn or discover drawbacks in the product or business processes you have never even thought of. In this order of ideas, the exit survey is extremely useful for increasing retention by spotting disturbing aspects of your service.
Most of the exit surveys take the form of series of multiple choice questions. As a departing client, you will definitely not be interested in spending significant time on complex questionnaires, limiting your opinion with predefined choices.
NPS surveys are different. They are short and easy, asking one single question which can be answered in a matter of seconds, allowing customers to express themselves freely. This openness invites for likewise answers from departing clients who provide a level of detail that traditional exit surveys can't meet. As you encourage them to talk and show your care and willingness to improve your SaaS product, departing customers might consider returning in the future. By giving them the chance to speak up you would also prevent unhappy customers from sharing negative reviews about their interaction with you.
Be sensitive to customer needs and respectful to their time. Understand what they try to accomplish and anticipate the solutions they want to find in your product. Request feedback at each stage of their lifecycle and they will help you build a customer experience that speaks for itself.
Start surveying your customers and improve retention
All in all, NPS surveys have been proven to improve retention and reduce churn, and as a SaaS business, this should be among your leading goals. Start surveying your customers right away and notice the improvements immediately.