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How to Avoid NPS Bias in SaaS Companies

September 11, 2024
5
min read
Kasia Perzynska
Table of contents
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If you are a SaaS business, you know that the Net Promoter Score (NPS) measures customer loyalty and satisfaction.

While this metric is incredibly useful, it has its challenges. Many businesses need to be made aware of NPS bias, which can lead to incorrect results and poor decisions.

To help remedy this issue, we have compiled information on how NPS bias affects your company and tips for avoiding it in our latest blog post.

If you'd like to start measuring your NPS right away, use this handy template below:

What is NPS Bias?

You might ask, "What do we mean by NPS bias?" Bias is when an NPS survey question is not worded correctly and thus steers responses in one direction. The question may be misguided, or the available answers may not clarify sufficiently. Even the method of selecting respondents and the poll's timing could also induce biases within an NPS assessment.

NPS Bias Examples

For example, if you distribute an NPS survey to your customers and ask,

"On a scale of 0-10, how likely are you to recommend our product to a friend?"

this may seem like a simple query. However, it is important to recognize that there are several potential sources of bias in asking such a question.
To begin with, the word "recommend" may prod respondents to give a favorable rating since recommending something is usually associated with positivity. Additionally, using a numerical scale might lead them to rate more intensely (for instance, 9 or 10 rather than 7 or 8) due to incorrectly perceiving it as binary.

Why NPS Bias Matters for SaaS Companies

If your NPS survey results are distorted by bias, it can harm SaaS companies. Things could quickly go awry when you act upon inaccurate data and make decisions based on them.

For instance, if the survey response rate is falsely increased due to a variety of factors such as respondent fatigue or selection bias, you might misjudge customer satisfaction levels. This, in turn, leads to potential underinvestment into customer support services and product development initiatives that would ultimately benefit both the company and its consumers.

On the contrary, if your NPS score is skewed due to bias, you could become overwhelmed and initiate drastic changes to your product or service that are not essential. Unknowingly, you may disregard negative feedback, considering it is simply a result of biased participants.

Bias in NPS can be detrimental if unchecked, obstructing your ability to gain an accurate comprehension of customers and make sound data-driven decisions that will benefit your business in the long run.

How to Avoid NPS Bias in SaaS Companies

Are you looking to prevent NPS bias in your SaaS firm? Here are some suggestions that can set you on the right path:

  1. Choose your respondents carefully: If you are not careful, your NPS survey results can be significantly biased. For instance, if you only invite customers who have recently bought from you to take the survey, their responses may not accurately reflect the opinions of all your customers. To prevent this from happening and obtain more truthful insights about customer experiences, consider conducting a random sampling among all your clients or segmenting them based on various characteristics such as length of patronage.
  2. Use neutral language: Crafting the NPS question unbiasedly is paramount for receiving accurate feedback. Utilize language which does not sway respondents in one direction or another, like instead of asking, "How likely are you to recommend our product?" pose a query such as "Would you suggest our product to someone close to you?". This removes any hinting and tends towards more honest responses.
  3. Offer open-ended feedback options: To understand better what your customers want and need, ask for more than just a numerical score. Providing an open-ended feedback option allows respondents to express their thoughts in greater detail, and you'll also be able to pinpoint precisely which areas could use some improvement!
  4. Avoid leading answer options: When designing answer options for your NPS question, ensure they are pristine and impartial. Including answers that can potentially manipulate the respondent's selection is inadvisable; a good example is "I would recommend this product" alongside "I would probably recommend this product." Although these two choices may appear similar, they could inadvertently encourage people to choose one over another - even if their sentiment isn't accurately represented.
  5. Consider the timing of your survey: To ensure your NPS survey is accurate and unbiased, consider randomly sending it out or waiting for a certain period of product usage. This method allows for more genuine customer feedback about their overall experience with your product. That way, you won't get artificially high ratings based solely on positive experiences (such as completing successful support tickets).
  6. Analyze your results with a critical eye: Even when you have taken the necessary precautions to ensure an unbiased NPS survey, reviewing your results with a critical eye is still essential. Search for irregularities or patterns that may reveal any possible biases, and consider conducting follow-up interviews or surveys to validate your findings.

Send your NPS survey with Survicate

By selecting the right respondents, utilizing impartial phrases and questions, offering open-ended feedback choices, abstaining from influencing answer selections, and timing your survey accordingly, SaaS businesses can avoid potential biases in their Net Promoter Score analysis. This will empower them to make knowledgeable decisions that will bolster customer loyalty and satisfaction – ultimately leading to an upsurge in business success.

The easiest and quickest way for SaaS businesses to send NPS surveys to their customers is to use the NPS template offered by Survicate. Our tool can be used not only to collect responses but also to analyze them, meaning you won't have to invest more than a few minutes.

Elevate your customer feedback game with Survicate. Sign up for a free account and gain access to essential features during our 10-day trial. And don't forget to review our pricing to find the perfect subscription for your needs.

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