By David Rode
It has become all too common for B2B SaaS companies to survey their customers once a year through a moment-in-time customer relationship survey, with at least one section addressing the ultimate question of Net Promoter Score (NPS).
Assuming the results are positive, the company then proudly presents their board with the survey results compared to industry benchmarks and proceeds with the board meeting. “Let’s move on to how many new customers you acquired” is likely the next agenda item.
Relationship surveys, however, should be designed to gauge loyalty and solicit direct feedback from customers who not only bought your solution, but from customers who use your solution as well. Your customers who bought your product and solution did so for a reason – because they believed it would add business value to their organization. Your customers who actually use your product and solution every day can help to prove (or disprove) that business value.
If you are focused on customer retention, then you need to know the answer to the question of NPS for your company: “How likely are you to recommend my product or service?”
But there are two very common pitfalls around this answer that are luring boards and their portfolio companies into a false sense of security.
Pitfall #1: NPS reports aren’t showing the full picture
NPS reported to the board is often only made up of responses from a few key stakeholders across the portfolio company (likely the person that writes the checks, the business sponsor of the solution, or the administrative “champion”), and is not necessarily representative of the company’s overall end-user population.
Many SaaS companies are hesitant to ask the NPS question of their hundreds of end-users, so instead they end up only taking feedback from a few key stakeholders – a.k.a. the folks they’ve endeared themselves to since the start of the sales pursuit.
“We love these guys!”
That’s great, but the fact is that end-users are your customers too.
After key stakeholders purchase your solution, it is the people that use your product that must be satisfied and, ultimately, advocate for your product.
If an abundance of end-users using your product are detractors or passives, then you will inevitably experience a groundswell of negative sentiment that will bubble up to those key stakeholders that have come to be like family. These end-users do not care of about schmoozing or company swag or fancy steak. All they want is a better quality of life from using your product. If you aren’t getting their feedback, you are sticking your head in the sand.
Don’t be like this guy.
Pitfall #2: NPS isn’t being measured regularly
Only getting feedback from an annual customer relationship survey to determine your NPS is like going to the doctor once a year, but then blowing off any recommended health adjustments and not checking your vitals until your next physical. You could be dead by then. I’m not joking.
The same applies for B2B SaaS companies. Checking the pulse of your customers once a year (or not at all) is a bad habit… and …read more
Read more here:: B2CMarketingInsider