**Dear SaaStr: How Do I Do an NPS Survey Right?**
The main challenge with NPS Surveys is not their effectiveness—they work. The problem is the lack of appropriate actions taken afterwards and timing issues.
To effectively gather and use NPS (Net Promoter Score), focus on execution, automation, and actionability. Here’s how:
1. **Set Up the NPS Survey Correctly. KISS.**
Use the classic NPS question: “On a scale of 0-10, how likely are you to recommend [your product] to a friend or colleague?” Add an open-ended question like, “What’s the primary reason for your score?” This provides both quantitative and qualitative data. Keep it simple and avoid overwhelming users with too many questions.
2. **Segment Your Audience. Too Many Don’t Really Do This.**
Don’t send the survey to everyone. Segment your customers by lifecycle stage or product usage to understand different segments’ satisfaction levels and struggles.
3. **Automate the Process**
Use NPS tools or in-app solutions to automate NPS collection. Integrate with your CRM to track scores by account and segment, ensuring consistency and scalability.
4. **Time It Right. Don’t Send It During Renewal Season or After a Trouble Ticket.**
Timing is crucial. Send surveys after key milestones, such as 30 days post-onboarding or after a major feature launch. Avoid periods like renewals or times following customer frustrations.
5. **Analyze the Data. You Have to Tie It To Outcomes.**
Categorize results by promoters (9-10), passives (7-8), and detractors (0-6). Identify patterns in feedback and actionable insights from recurring themes or mentioned features.
6. **Tie NPS to Financial Metrics**
Track how NPS relates to churn, upsells, and revenue expansion. Understanding the correlation helps quantify the impact of NPS improvements on financial outcomes.
7. **Act on the Feedback. And Set a Real Goal.**
Avoid the pitfall of inaction. Share results across departments and make NPS improvement a company-wide objective. Set clear improvement goals, like increasing NPS from 30 to 40 by year-end.
8. **Close the Loop with Customers**
Follow up, especially with detractors, to understand and address their issues. Engage promoters by thanking them and requesting referrals or testimonials.
9. **Make It a Continuous Process**
Regularly measure NPS, quarterly or biannually, and monitor trends. This ensures ongoing customer satisfaction efforts are effective.
NPS is simple but powerful when implemented properly. It aligns the whole company on customer happiness, leading to more referrals, reduced churn, and increased revenue. Start using it if you haven’t already—it works.