NPS for SaaS: Push Retention and Engagement
User Engagement
Maria Correa
May 22, 2024
One of the well-recommended strategies is Implementing a Net Promoter Score (NPS) survey that can significantly aid in these areas by providing clear insights into customer satisfaction and loyalty. Below you will find an in-depth look at how NPS functions in the SaaS industry like the benefits it offers, how to effectively measure it, and strategies for leveraging NPS data to foster business growth. Take a seat, grab a coffee, and let’s start.
Understanding the Benefits of NPS for SaaS
If you never heard about NPS, we have another article explaining the 10 proven strategies to improve your NPS score.
If you already know it, Let’s continue here. NPS is a powerful tool to improve customer loyalty and can be seamlessly integrated into your business processes through online surveys. Here are some advantages of using NPS in your SaaS business:
Easy distribution and automation: NPS surveys are straightforward to distribute as online questionnaires. Tools like Told allow you to automate the survey process entirely, enabling the triggering of surveys on specific pages or setting up directly in emails.
Simple measurement and benchmarking: NPS is measured with a simple question and doesn’t require a team of trained researchers, making it ideal for even small SaaS teams. The data from NPS surveys are also easy to analyze and benchmark against industry standards. You can also read our blog: NPS Industry Benchmarks: Know Where You Stand.
Predicting churn and growth: Knowing the balance between detractors and promoters helps you predict customer churn and growth opportunities more accurately. This foresight is crucial for making informed strategic decisions.
Identifying product strengths and weaknesses: Regular NPS feedback highlights what customers appreciate about your product and areas where it falls short, providing direct pointers for product improvement and innovation.
What Constitutes a Good NPS Score in SaaS?
A good NPS score varies across industries, but for SaaS, a score between 0-30 is generally acceptable, 30-70 is considered great, and above 70 indicates outstanding customer satisfaction. We recommend you continuously monitor the NPS benchmarks for the SaaS industry to ensure your scores are competitive.
10 Steps to Implement Net Promoter Score (NPS) Effectively
To ensure your NPS survey is as effective as possible, follow these 10 strategic steps:
Choose the channel: Select the communication channels most frequented by your customers, such as email, in-app notifications, or your service website.
Customize the survey: Improve the standard NPS question to better fit your brand and customer interaction style.
Add more questions: After the initial NPS question, consider asking open or follow-up questions to gather more detailed feedback.
Timing is key: Send out NPS surveys at strategic times, such as after a customer service interaction, when canceling subcription or a significant purchase.
Frequency: Decide on a balanced frequency to regularly gather feedback without overwhelming your customers.
Test, test, test: Continuously test different aspects of your surveys, including phrasing and layout, to improve response rates.
The right moment: Ensure the NPS survey is integrated across various customer touchpoints for comprehensive feedback.
Use a user-friendly design: Opt for a simple and intuitive rating scale to encourage more customers to complete the survey.
Mobile-friendly: Make sure your NPS survey is mobile-friendly, considering the increasing use of mobile devices.
Analyze responses: Systematically analyze the responses to identify trends, and categorize feedback to facilitate targeted improvements.
Implementing these steps will help you optimize your NPS strategy, allowing you to effectively measure and enhance customer satisfaction and loyalty in the SaaS sector.
Implementing NPS with told.club
Email Surveys: Told simplifies the process of conducting NPS surveys via email. You can easily set up, deploy, and gather metrics by integrating Told with your email platform (such as Brevo, Mailchimp, or Customer.io), adding your NPS question, and embedding the provided code snippet into your email tool.
In-App Surveys: Told also supports in-app surveys, which can be triggered based on specific user actions, pages, or profiles. These surveys require no technical skills to set up and can be customized and launched directly within your website or app.
NPS Data for Business Growth
Keep your Promoters happy: Your promoters are your allies, they are willing to recommend your product or service. Actively engage them to maximize their impact and encourage them to leave online reviews, provide testimonials, or participate in referral programs. These actions enhance your digital marketing efforts and also amplify positive word-of-mouth.
Engage with Detractors: Understand the concerns of detractors to prevent potential churn. Address specific issues they've encountered and offer solutions or incentives to improve their experience. This proactive approach can convert dissatisfied customers into loyal users.
Conclusion
Implementing a robust NPS strategy helps in understanding and enhancing customer loyalty and also serves as a cornerstone for strategic decision-making and growth in the competitive SaaS market.
This strategy give us a numerical value representing customer loyalty, but also provides rich and actionable feedback that can drive improvement in a meaningful way. This is particularly crucial in the highly competitive Software as a Service (SaaS) market, where understanding customer needs and preferences can be the key to standing out among competitors.
