Effective NPS Implementation: A Guide for SaaS Companies

Imagine your product as a high-performance vehicle preparing for a race. Your skilled team of mechanics will rely on diagnostic data to evaluate the engine's performance and make improvements that will increase your chances of being the first to cross the finish line. A Net Promoter Score (NPS) acts as this diagnostic tool, establishing NPS benchmarks, providing real-time feedback to optimize efficiency and fine-tune your product, prioritizing enhancements, and ensuring a smooth journey for your passengers (aka users). In a competition where many are driving towards winning customers over, user loyalty is the fuel that gives your product an advantage over others. In this guide, we help you understand NPS, benchmarks, what is an "NPS detractor" and "NPS promoter, to elevate customer satisfaction, guiding you to uncover actionable insights, prioritize improvements, and foster a customer-centric culture that resonates with your audience.

Understanding NPS: What is it and how does it work?

The first step in effectively implementing NPS as a customer success metric is understanding the concept behind it. Developed by Fred Reichheld, Net Promoter Score (NPS) is based on a simple survey question: "How likely is it that you would recommend our company/product/service to a friend or colleague?" It is a metric used to measure customer loyalty and satisfaction with a product, service, or company. Respondents provide a rating on a scale from 0 to 10, with 0 being "Not at all likely" and 10 being "Extremely likely." Based on their responses, customers are categorized into three groups: NPS Promoters (score 9-10), Passives (score 7-8), and NPS Detractors (score 0-6).

Why should SaaS teams implement NPS?

Word-of-mouth is every business's best ally. You are more likely to visit a restaurant that has been positively reviewed by others who have tried it than simply looking at carefully fabricated photos on social media. Buying software is no different. NPS consolidates the opinions and reviews of a product's customers, becoming a trusted indicator of customer satisfaction.Besides word-of-mouth marketing, NPS is crucial for SaaS companies for several compelling reasons:

• Measuring customer loyalty: By asking the simple question of how likely users are to recommend your product can gauge the level of satisfaction and loyalty among your user base.
• Identifying areas for improvement: NPS Detractors' comments can identify specific pain points, enabling SaaS companies to address issues and enhance the user experience.
• User retention: Satisfied customers are more likely to stick around. By identifying and addressing concerns raised by detractors, SaaS companies can reduce churn and improve customer retention rates.
• Enhanced product development: NPS feedback provides valuable insights into what customers value and what they find lacking in a product. This information is instrumental in guiding product development efforts, ensuring that new features align with customer needs and expectations.
• Competitive advantage: SaaS companies with high NPS scores can use this as a competitive advantage. A positive NPS reflects a strong relationship with customers, which can differentiate a company in a competitive market.
• Customer-centric culture: Embracing NPS encourages a customer-centric culture within the organization. When every team member understands the importance of customer satisfaction, it fosters a collective effort to meet and exceed customer expectations.
• Data-driven decision-making: NPS provides quantitative data that can be analyzed over time. This data-driven approach allows SaaS companies to make informed decisions based on real customer feedback rather than assumptions.
• Continuous improvement: Regularly implementing NPS allows for continuous improvement. SaaS companies can iterate on their products and services based on ongoing feedback, ensuring that they stay responsive to changing customer needs.
• Enhanced customer communication: Following up with NPS detractors and engaging with NPS promoters creates opportunities for meaningful customer communication. This not only resolves issues promptly but also strengthens the relationship between the company and its users.

In summary, understanding the importance of net promoter score, NPS promoters and NPS detractors is a strategic imperative for SaaS companies, as it empowers them to measure, adapt, and excel in providing exceptional customer experiences.

10 steps to implement Net Promoter Score (NPS)

New metrics introduce new responsibilities and processes to your product evaluation process. Whether it's improving customer satisfaction, identifying enhancement opportunities, or gauging overall loyalty, defining clear objectives will guide how you approach users with the NPS question. Once you've established a goal for measuring NPS, you can start implementing it by following these steps:

Step 1: Choose the right channel.

Choosing the right channel to approach users directly impacts the response rate and the quality of feedback. To define the right channel for delivering NPS surveys, SaaS teams should understand customer behavior and analyze where your customers are most active and engaged. Here's a breakdown of possible survey channels and their advantages:

• In-app surveys: In-app surveys are convenient and can capture feedback at the moment of interaction. They provide a seamless experience and are less likely to be ignored.
• Email surveys: Email surveys are versatile and can be scheduled strategically. They are effective for reaching a broader audience, especially if your SaaS product has a wide user base.
• Website pop-ups or banners: If your users frequently visit your website, consider using pop-ups or banners to prompt the NPS question. However, be cautious to maintain the user experience, and ensure appropriate timing.
• Post-interaction surveys: Consider asking the NPS question immediately after a positive interaction, such as completing a successful task or receiving support. This ensures that the feedback is linked to a specific experience, providing valuable context.
• Multichannel approach: Use a combination of channels to maximize reach. Combine in-app surveys, email campaigns, and website pop-ups strategically. This approach allows you to capture feedback from users who prefer different communication channels.

Ultimately, the key to choosing the right NPS channel is to understand your user base, their preferences, and the nature of their interactions with your SaaS product.

Step 2: Customize the question.

NPS questions can be customized to better fit the context. Fred Reinchfeld, the father of NPS, will not come back to haunt you if you tweak the NPS question to better fit the context you're introducing it to. For example, you can explicitly mention the object of your evaluation.

• "Please rate your experience with our customer service."
• "How likely are you to recommend this feature to a coworker?"
• "How satisfied are you with the new UI of our platform?"

Step 3: Consider additional questions.

"Since I already have you here, do you mind if I ask a few more questions?" Once you have users engaged with your NPS survey, use this as an opportunity to ask additional questions, as they can evolve your NPS survey into a conversation that provides further insight into your user base. Additional questions allow you to understand the context of users' responses, identify more areas for improvement, and tailor your communication strategies according to user preferences. Examples of additional questions you can ask in your NPS survey include:

• Open-ended questions: Including open-ended questions, such as "What is the primary reason for your score?" can yield qualitative insights that go beyond numerical ratings. Users might provide detailed feedback that can uncover hidden issues or positive experiences.
• Demographic information: Gathering demographic information helps SaaS teams understand the diverse perspectives of their user base. This can be particularly useful for tailoring features or communication strategies to different user segments.
• Feedback on specific initiatives: If your SaaS company is implementing specific initiatives or changes, additional questions can gauge user perceptions of these efforts. This feedback helps evaluate the effectiveness of ongoing projects and informs future decision-making.
• Understanding user roles: Including questions about users' roles or industries can provide insights into how different user segments perceive the product. This understanding is valuable for adapting the SaaS solution to meet the specific needs of various user groups.

In summary, incorporating additional questions into the NPS survey allows SaaS teams to gather richer and more actionable insights.

Step 4: Timing is crucial.

Timing is a critical factor in NPS surveys as it directly influences the accuracy, relevance, and usefulness of the feedback received. By strategically aligning the survey with key moments in the customer journey, you can maximize the value of NPS data and even increase response rates.The benefits of strategically timing NPS surveys include:

• Capturing real-time feedback: Presenting the NPS question immediately after a customer interaction, whether positive or negative, ensures that responses are closely tied to recent experiences.
• Avoiding bias: Presenting the NPS question promptly minimizes memory bias and ensures a more genuine response.
• Linking feedback to specific interactions: For example, after a successful purchase, positive support experience, or product usage, the survey can capture feedback related to that particular touchpoint, providing context to the score.
• Preventing survey fatigue: If customers are bombarded with surveys too frequently, they may become less willing to participate.
• Optimizing positive moments: Presenting the NPS survey at positive moments allows SaaS teams to capture and leverage positive sentiment.
• Avoiding interruption during negative experiences: Presenting the NPS survey immediately after a negative interaction may bias the results and create more friction for frustrated users.
• Aligning with the customer journey: Understanding when users are most engaged with the product allows SaaS teams to capture feedback at points that matter most to customers.
• Enhancing response rates: Presenting the NPS survey at a time when customers are actively engaged and satisfied increases the likelihood of their participation. Higher response rates contribute to a more representative sample of user sentiment.
• Tracking changes over time: By consistently timing NPS surveys, SaaS teams can track changes in user sentiment over time, providing insights into the effectiveness of efforts to improve the customer experience and allowing for trend analysis.
• Ensuring relevance: If the feedback is collected too late, the insights may no longer be actionable. Timely feedback allows for prompt action and continuous improvement.

Step 5: Frequency of survey.

The frequency of NPS data collection should be tailored to the specific characteristics of your SaaS product, user behavior, and business goals. Regularly reassess and adjust the frequency based on feedback trends and your team's capacity to implement improvements effectively.Here are some tips to help you define the frequency of NPS surveys:

• Consider customer lifecycle: For example, if your product is subscription-based, consider collecting NPS data at key milestones such as onboarding, after feature releases, or at subscription renewal points.
• Balance frequency and survey fatigue: Assess how often users are willing to participate without feeling overwhelmed. Consider factors such as the complexity of your product and the nature of user interactions.
• Regular check-ins for continuous improvement: Quarterly or biannual surveys can provide a cadence for tracking changes over time, making it easier to identify trends and measure the impact of improvements.
• Seasonal considerations: Factor in any seasonality or business cycles that might influence user experiences. For example, if your SaaS product experiences peak usage during certain times of the year, consider aligning NPS surveys with these periods.
• Product release or feature updates: Gauge user reactions to new functionalities and enhancements. More frequent surveys during these periods can capture feedback when it's most relevant.
• Experiment with test periods: Test different cadences to assess the impact on response rates and data quality and adjust the frequency based on the outcomes of these experiments.
• Leverage automated survey tools: Automation can streamline the survey process, making it easier to implement surveys at regular intervals without manual effort.

Overall, SaaS teams should look out for patterns in user activity and align NPS surveys with these patterns for optimal response rates and valuable insights.

Step 6: Test and iterate.

A strategy cannot be proven effective until it's put to the test. In other words, you won't know what the best NPS strategy for your product is until you try it. By systematically testing and iterating on NPS surveys, SaaS teams can refine their approach to maximize engagement.Start with pilot testing on a small subset of users before deploying the NPS survey widely. This allows you to identify any issues with the survey design, wording, or delivery process. Conduct A/B tests that compare the performance of different survey variations to identify which elements contribute to higher response rates and more meaningful feedback.Many aspects of your NPS survey can be tested, such as:

• Test different timings for survey deployment to assess how timing influences response rates and the quality of feedback.
• Vary the channel to analyze which yields the highest response rates and most valuable insights.
• Customize survey questions to assess whether they provide more relevant and actionable feedback
• Optimize survey length to find the right balance between response rates and the depth of insights.
• Test survey variations on different user segments to define the best way to approach target audiences.

NPS survey testing is an iterative process. To facilitate iteration, actively collect feedback on the survey itself. Ask users for suggestions on how to improve the survey experience and use this feedback to iterate on the survey structure, wording, or design. Regularly review the results, iterate on your survey strategy based on the feedback received, and stay attuned to changes in user behavior and preferences over time.

Step 7: Implement across touchpoints.

Implementing NPS surveys across different touchpoints is a strategic approach for SaaS teams to gain a nuanced understanding of customer satisfaction and experiences throughout the entire user journey. It also helps to set NPS benchmarks and subsequently, goals for the success teams.

• Gain holistic insight into the customer journey
• Identify the strengths and weaknesses of each touchpoint based on scores
• Pinpoint specific areas for improvement as different touchpoints represent different aspects of the customer experience
• Tailor user communication strategies according to your goals and the context of the survey (product-based or service-based)
• Increase user engagement by meeting users where they're most active
• Create targeted strategies for different user segments based on preferences and customer profiles

Step 8: Use a user-friendly scale.

Creating user-friendly scales for Net Promoter Score (NPS) surveys is essential to ensure that respondents easily understand and accurately express their sentiments. Tailoring the scale to match the tone and branding of your SaaS product can enhance its user-friendliness. It's crucial to keep the scale simple, clear, and aligned with the preferences of your target audience.Here are examples of user-friendly scales for NPS surveys:

Traditional 0-10 Scale.

"On a scale of 0 to 10, how likely are you to recommend our [product/service/company] to a friend or colleague?"

• 0: Not at all likely
• 5: Neutral
• 10: Extremely likely

Smiley faces scale.

Use visual cues like smiley faces to represent the scale.

• 😢 (Sad) for 0
• 😐 (Neutral) for 5
• 😊 (Happy) for 10

Color-coded scale.

Assign different colors to each point on the scale, making it visually intuitive.

Worded descriptors.

Provide worded descriptors for each point on the scale to clarify the meaning.

Heart rating scale.

Use hearts to represent the scale.

• 💔 for 0
• 💛 for 5
• ❤️ for 10

Thumbs Up/Down Scale.

Incorporate thumbs up and thumbs down icons.

• 👎 for 0
• 🤷 for 5
• 👍 for 10

Star rating scale.

Utilize a star rating system.

Slider scale.

Allow respondents to slide a visual slider along a scale.

Progress bar scale.

Use a progress bar to visually represent the scale.

Step 9: Optimize for mobile.

If a significant portion of your user base interacts with your SaaS product on mobile devices. To ensure that the NPS survey is optimized for mobile, the layout should be user-friendly on smaller screens to encourage participation.When building your surveys, test the layout, readability, and overall user experience on both desktop and mobile.

Step 10: Analyze and categorize responses.

Analyzing and categorizing NPS responses is essential for SaaS teams as it serves as a roadmap for understanding customer sentiment and driving strategic improvements. Like a chef who asks his guests for feedback to enhance the flavors of his signature dish, analyzing NPS responses can foster a customer-centric approach to product development and service delivery.

Calculate NPS.

Begin by categorizing responses into the three main NPS segments:

• NPS Promoters (9-10): Loyal customers likely to recommend.
• Passives (7-8): Satisfied but not enthusiastic customers.
• NPS Detractors (0-6): Dissatisfied customers who may harm your reputation.

The overall NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters, resulting in a score that can range from -100 to 100. A positive NPS indicates a higher proportion of NPS promoters, suggesting strong customer loyalty, while a negative NPS may indicate areas for improvement and potential customer dissatisfaction.

Follow up with NPS detractors.

Contact NPS detractors to understand concerns and work towards resolution, thus improving customer satisfaction and demonstrating a commitment to feedback. Leveraging automation can help you categorize responses based on sentiment and key themes, and manage follow-ups. With Beamer, for example, you can use Zapier of custom webhooks to reach out to customers who leave low NPS scores to understand and remedy their frustrations.You can also create variations of your NPS survey and use segmentation to refine your analysis. For example, within NPS Detractors, follow the main survey question with open-ended questions that allow them to add context to their score.

Promote positive feedback.

Leverage positive feedback from NPS Promoters as testimonials or in marketing materials to enhance your company's reputation and attract new customers.Beyond quantitative analysis, extract qualitative insights from individual responses to highlight positive experiences. Identify specific customer quotes that encapsulate the sentiment and reasons behind their scores. These quotes can be powerful for conveying your customers' voice.

Monitor trends.

Look for trends and patterns in the responses and implement NPS regularly to track changes over time. Trends provide insights into the effectiveness of your efforts and help you make informed decisions from recurring themes, issues, or positive feedback that emerge across different responses. This helps in understanding the primary drivers behind the NPS scores.Benchmarking NPS response categories against industry standards will also help you gain a broader perspective on the competitive landscape and identify areas for differentiation.

Iterate and improve.

NPS analysis is an iterative process. Regularly review and update your categorization strategy based on evolving user feedback, changes in the product or service, and shifts in customer expectations.Use the insights gained from NPS analysis to also iterate on the survey design, question wording, and overall NPS implementation strategy. Continuously refine your approach based on feedback and evolving user needs, as improving NPS survey experience can positively impact the score.

Communicate Results.

Share NPS results and insights with relevant teams within your organization to foster collaboration and transparency. Sharing categorized insights with product development, customer support, and marketing teams to ensure a unified approach to addressing feedback promotes a customer-centric culture and encourages everyone to contribute to enhancing customer satisfaction.

How can Beamer help you implement an NPS system?

Beamer is your ally in the NPS journey, offering a suite of features designed to streamline the user feedback process and enhance user engagement. Here's how Beamer can empower your NPS implementation process:Seamless survey deployment: Beamer provides a user-friendly platform for deploying NPS surveys effortlessly. Whether you choose in-app surveys, email, website pop-ups, or other channels, Beamer ensures a seamless experience for users.Customized NPS questions: Tailor the NPS question to fit the context of your users' experience. Beamer allows you to customize questions based on different product features, services, or specific touchpoints, ensuring relevance and gathering more insightful feedback.Multichannel consistency: Beamer enables you to deploy NPS surveys across various touchpoints consistently, ensuring a unified and familiar experience for users, whether they interact with your product on the website, in-app, or via email.Analytics and categorization: Beamer includes analytics tools that assist in categorizing, analyzing NPS responses and establishing benchmarks. SaaS teams can gain valuable insights into user sentiment, identify trends, and prioritize areas for improvement based on the robust analytics provided by Beamer.Beamer is a strategic partner for SaaS teams embarking on the NPS journey. From deploying surveys to analyzing feedback and fostering a culture of continuous improvement, Beamer equips your team to unlock the full potential of NPS.Sign up for a free account to start scoring high with Beamer.Learn more about NPS detractors here. Read "How to use customer feedback in product development" to elevate your product roadmap and stay ahead of the competition.