The Net Promoter Score (NPS) is a customer satisfaction metric that measures how likely customers are to recommend a company’s products or services to a friend or colleague. NPS is calculated by asking customers a single question: “How likely are you to recommend our product or service to a friend or colleague?” Customers are then scored on a scale of 0 to 10, with 0 being “not at all likely” and 10 being “extremely likely.”
NPS scores are divided into three categories:
Promoters: Customers who give a score of 9 or 10.
Passives: Customers who give a score of 7 or 8.
Detractors: Customers who give a score of 6 or lower.
The NPS score is calculated by subtracting the percentage of detractors from the percentage of promoters. For example, if a SaaS company has 60% promoters and 20% detractors, its NPS score would be 40.
NPS is a valuable metric for SaaS companies to use to measure customer satisfaction and identify areas where they can improve. By tracking their NPS score over time, SaaS companies can see how their customers’ satisfaction levels are changing and make adjustments to their business as needed.
Here are some tips for using NPS to improve customer experience in the SaaS industry:
Collect NPS feedback regularly: Don’t just collect NPS feedback once a year. Collect it regularly, such as after every purchase or customer interaction. This will help you to identify trends and patterns in customer satisfaction.
Segment your customers by NPS score: Segment your customers by NPS score to identify promoters, passives, and detractors. This will help you to target your marketing and sales efforts to the right customers.
Close the loop with detractors: When you receive negative NPS feedback, be sure to close the loop by responding to the feedback and taking action to address the customer’s concerns. This shows customers that you value their feedback and that you are committed to improving their experience.
Use NPS feedback to improve your product roadmap: Use NPS feedback to identify areas where you can improve your product roadmap. For example, if you are receiving negative feedback about a particular feature, you may want to prioritize fixing it or adding new features that customers are asking for.
By following these tips, SaaS companies can use NPS to improve customer satisfaction and grow their business.
Here are some examples of how SaaS companies can use NPS to improve their business:
A SaaS company can use NPS to track customer satisfaction with its new product release.
A SaaS company can use NPS to measure customer satisfaction with its customer support.
A SaaS company can use NPS to track customer satisfaction with its pricing.
A SaaS company can use NPS to measure customer satisfaction with its ease of use.
Spixel 