It’s no secret it costs five times more to attract a new customer than to keep an existing one. This is because returning customers buy more over time so operating costs shrink; whereas finding new customers is laborious and expensive. That said, why are only 18% of companies focusing on retention? Seems crazy, right? With Net Promoter Score® (NPS), companies can measure customer loyalty and find ways to turn customers into champions. This is an obvious way to drive more revenue and improve your bottomline.
NPS involves one simple question: How likely are you to recommend us to a friend or colleague?
The standard NPS question
It’s calculated by subtracting your percentage of detractors from your percentage of promoters, so your final score can range anywhere from -100 to 100. For example, if your percentage of detractors is 20% and your percentage of promoters is 80% then your NPS score is 60. Or, if your percentage of detractors is 100% and your percentage of promoters is 0%, then your NPS score is -100. This is obviously the worst case scenario.
For context, an “excellent score” for the high tech industry is 59, and anything above 70 is considered world class.
On the rating system, people who select 9 or 10 on the survey are considered promoters, as shown in green. People who select 7 or 8 are passives, as shown in yellow, and people who select 6 or below are detractors as shown in red.
So now that you know how to calculate NPS, the real question is….why should you care about measuring it?
Measuring NPS allows you to identify your detractors. These customers are highly likely to churn, and are more likely to talk about a bad customer experience. In the digital age just a single bad experience can go viral online, influencing existing customers and prospective buyers.
A recent study by American Express shows how detractors put your brand at risk:
NPS can also identify your promoters. These customers are your biggest spenders and referrers. It’s highly recommended you put programs in place to nurture them and make them advocates for your brand.
A study by the Temkin Group shows just how valuable promoters are to your brand:
Measuring NPS also enables you to convert your detractors into promoters. In fact, just a modest improvement in NPS can yield 25% more revenue. But to make a truly significant impact to your NPS score, you should take action in real-time with Salesforce, which we’ll discuss shortly.
At GetFeedback, we’ve implemented our own NPS program. Of course, we’ve made some mistakes along the way but we’ve also learned a lot so we’d like to share our framework with you. These insights aim to give you a strong foundation when getting started or help you refine your existing program. That said, there are three key pillars to a successful NPS program: Design, Distribution, and Action.
Pillar 1: Design
It’s important to build beautiful, branded surveys that are optimized for every device since over half of your survey takers are on mobile. An easy to take survey doesn’t just yield higher response rates but also higher quality feedback data.
You also want to design questions that will provide actionable feedback.
We recommend starting with an NPS question so you put your most important metric first.
Then include a structured question as it offers deeper insight and helps you report on themes contributing to negative or positive scores.
Also include an open text field to garner more qualitative feedback. Then use text analytics to understand sentiment, identify keywords, and spot trends.
Close with a custom thank you page. This is a great marketing real estate to promote relevant content, like customer stories, or ask promoters for reviews.
Our NPS survey is optimized for analytics and action
We also recommend using logic in your surveys take people down different paths based on their answers. If someone is identified as a detractor, you can use the thank you page to provide helpful articles and resources rather than marketing content. This way they know you’re listening to their feedback.
Pillar 2: Distribution
The annual batch and blast approach makes it too difficult to connect with relevant customers. Instead, we recommend using an always-on timeline so you have a constant pulse on customer health.
At GetFeedback, our customers receive an NPS survey quarterly, starting 90 days after they sign up with us. We also use NPS surveys before our annual renewals so we can leverage those data points in the renewals process.
We have an “always-on” NPS program that complements the customer journey
This process is much more manageable for our team. Rather than receiving NPS scores and comments from hundreds of customers once per quarter or once per year, they receive just a few each day.
Using Salesforce Process Builder, we’re able to automate this process with rules. We can schedule surveys at the right time so customers don’t get survey fatigue, which gives us complete control over the customer experience and helps us scale our distribution. Plus, it’s a huge time savings for our team.
Pillar 3: Action
There’s no point in measuring NPS, or any feedback for that matter, if you don’t act on the results. Since emotion is the highest contributor to NPS, a quick response can delight your customers and turn them into promoters.
We set rules so our Customer Success team is notified anytime someone gives us a 8 or below. A Customer Success Manager is then tasked with understanding the customer issue and follows up with that customer within 48 hours to course correct.
Customer Success Managers receive notifications when customers identify as passives or detractors
We also map NPS data to the contact and account level in Salesforce. Rather than burying this data in a third-party platform, it’s readily available for our Customer Success team so they can use it to shape customer conversations.
We map NPS to multiple objects in Salesforce so it’s always top of mind
Analytics dashboards are also leveraged as they make it easy to spot trends and identify issues within our organization. We also use NPS data to inform key aspects of our business, like product roadmap and pricing strategy.
NPS isn’t just a customer metric, it’s a company metric. So, we circulate our NPS scores and comments internally because we believe everyone is accountable for a great customer experience.
NPS dashboards elevate the voice of the customer to the entire company
Since implementing our NPS program, we’ve seen overall account health improve by 10%. We have a better handle on what our customers are experiencing and we’re empowered to make choices that drive meaningful change within our organization. That being said, we know there’s always room to improve. We’re excited to continue to learn from our customers and optimize our NPS program. If you’re interested in learning more about NPS in Salesforce, give us a shout!