Why we have this Process
The Net Promotor Score (NPS) measures how likely it is that a customer will promote our product to a friend. This is measured through a simple survey question "How likely are you to recommend our product to your friends or colleagues" on a 0-10 scale plus a short open feedback question "What is your mean reason for giving this score?".
It is very important to us to monitor and improve our NPS score because:
- The NPS metric is a key predictor of company growth. On average, an industry’s Net Promoter leader outgrew its competitors by a factor greater than two times. (source)
- Promotors (score 9 and 10) are Likely to recommend an organization to at least 3.5 people (source)
- Promotors are 5 times more likely to purchase more goods or services
- It allows us to automatically contact unhappy customers before they leave. So called Detractors (score 0-6) have a 1.5x higher chance of leaving (source).
- It allows us to benchmark against competitors (see image in Appendix below).
- It gives us insight what customer segments are less happy (i.e. Canadians) by tracking score per 'trait'.
- The open question at the end of the survey provides valuable customer feedback and ideas.
Context and Scope
NPS surveying is an ongoing Product Management process that for the most part feeds into the Discovery processes. It provides the discovery processes with information on what customer segments are (dis)satisfied, the cause of it and feedback by changes in satisfaction after a new feature was released.
When should the process be performed?
Surveys are triggered (shown in-app or sent via email) on a schedule:
- The first survey should be triggered shortly after a new customer signed up and had some time to use the service (i.e. after 2 days). The more advanced version of this is: 1 hour after the user has achieved some value from your service (i.e. booked a room) or after 5 days after registering, whatever comes first
- The next surveys should be send every 3 - 6 months.
Who performs the process
Who performs the process: Product Manager (with help of a tool)
Who is monitors if process is done (correctly): Head of Product
- Configure the tool as shown below
- Configure zapier integration to send an email to customer support for very low scores
- Monitor weekly NPS email and comments. Add recurring feedback to the customer feedback wiki.
- Every quarter do a deep dive into the scores, drill down per segment (i.e. country, subscription type, etc) to discover patterns.
Tool we use & Configuration
We use Satismeter because:
- It gives is very high response rates (22%) because it first tries to show the survey in-app, and if the user doesn't login it sends the survey via email.
- Does not show the survey again to a user who already has filled it in the last 3 months.
- It allows us to segment the responses/customers by "traits"
- The Zapier integration allows us to send an email to support if a customer is unhappy (score <6 to customer)
- Allows sampling only x% of a certain user group (to save license costs / poll less users).
- Relatively cheap (49$/month) (no I'm not an affiliate).
We use this configuration:
- We have a separate Project for Buyers and Sellers on our platform, to keep scores apart more easily and because we track different traits for each (see next paragraph)
- We send the first survey after 5 days because the average customer has achieved some product benefit by then.
- We do a survey every 3 months, to keep tabs on our NPS development
- We only send an email reminder after 2 weeks, to give the user some time to login to the app and do the survey there (less spammy).
Traits (for Customer Segmentation)
- Browser Language
- Created At (signup date)
- User subscription type* (i.e. free/premium/business)
- User type* (i.e. personal/business)
- Device OS
- Device Type
- Feedback (the free text feedback)
How to present NPS scores to management?
First of all collect at least a month of data, as NPS scores fluctuate a lot in the first weeks. Then I would plan a first presentation of the score. In this presentation:
- Convince or remind management of the importance of NPS, using the first paragraph.
- Show industry averages (see image below)
- Present your score, show a bar graph per score (0-10), explain again how it is calculated.
- Quote some of the textual feedback you got.
- Tell them how you are going to use these insights to improve your roadmap and when the meeting about this is.
After this presentation I would include the whole C-suite in the tool so they get a weekly summary of the NPS score.
NPS and company growth: http://www.netpromotersystem.com/about/how-is-nps-related-to-growth.aspx
Appendix A : NPS scores by industry
Appendix B: Satismeter dashboard