What makes it such dangerous territory? The new customer group you need to attract as a young SaaS is of a different kind. They differ very much from your current customer base.
Early adopters have been driven by novelty and could turn a blind eye to potential glitches. The early majority that is ahead of you is more demanding. This target group expects both great functionalities and a great customer experience.
To attract and maintain this group, your product and services need to be designed exceptionally well. So that the customer experience you offer meets or, better still, surpasses the new target's expectations. That's why collecting customer feedback is not just an option for a SaaS. It's a must and a key growth driver.
Despite some skepticism the metric attracts, NPS is a popular KPI. As a software survey company, we can testify: NPS surveys are the surveys our clients frequently use. Continuously so.
NPS matters for all. But the metric is especially vital for SaaS startups. Why? There's a strong correlation between their pressure to grow and the need to ensure customer satisfaction is high.
The growth factor
Growth is a priority for SaaS, and a Net Promoter Score helps predict growth generated through referrals. Skeptics criticize it for collecting only declarations of recommendations. They say cannot entirely rely on the scores. To a point, they are right. NPS is not an ultimate predictor of growth as there are a lot of factors contributing to business growth. Yet, measuring NPS helps you form hypotheses on growth and estimate your business strength.
NPS helps keep customer satisfaction high
The Net Promoter Score is a loyalty metric. It is based on the presumption that customers ready to recommend are happy with your services and likely to stay. NPS surveys are easy to run and can be triggered at any point in customer journeys. They help ensure customer satisfaction levels are high on all user touchpoints.
This is important as sustainable growth is tied to customer happiness. To increase the customer lifetime value of users, SaaS companies need to create a positive product experience. They need to keep customer satisfaction high along all user journeys - not an easy feat when your team is small, and you need to grow fast to last.
Optimal feedback collection
Luckily, NPS surveys are short. They're quick to send and to answer. Also, the customers - familiar with NPS - are willing to leave their scores. The surveys are not only easy to launch, but they also generate high response rates, giving you volumes of customer input to analyze.
Feel free to check out the NPS survey template below:
Last but not least - there is a correlation between the NPS and customer churn. A low Net Promoter Score is a clear signal of dissatisfaction and a warning light the customer may drop out. Using dedicated NPS software lets you quickly engage with unhappy users, making amends and preventing churn.
But, if the survey is so simple, isn't a generic forms tool enough to measure an NPS?
Why Dedicated NPS Software Is a Must for SaaS
NPS surveys have such a simple structure that, in theory, you could do without a specialized tool. Almost any form builder is enough to create an NPS survey, generate a link, and send it out.
Yet, investing in proper Net Promoter Score software pays off, and it's the only logical option for a SaaS.
As said before, NPS - useful as it is to estimate the business strength - cannot be the only CX metric you rely on. To ensure the customer experience generates stable growth, you also need to keep track of customer experience metricslike CSAT or CES, LVT, CAC, and more.
You also need solid reporting and the ability to send surveys through various channels. (More about that - later on in the text.)
Dedicated NPS software gives you the functionalities that no generic form creator will. It helps you commit to systematically collecting user feedback.
And it does so in a time-saving way: It cuts down on the working hours needed to create a survey and handle its results.
There is even more:
The Pros of NPS Survey Tools
The benefits of using a good net promoter platform are many, but let's narrow the list down:
1. Net promoter score software offers you more than NPS
Because NPS solutions integrate with CRMs, they let you segment users and send surveys in a more strategic way:
The integrations allow you to capitalize on your current customer data, as they enable sending surveys based on custom attributes or historical survey responses. So, you glean actionable insights from the survey results.
NPS tools also help close the feedback loop. They come with automated responses features. You can set them to appease detractors, warm up the passives, or invite promoters to referral campaigns.
So, dedicated NPS tools help your business in a tangible way. They can help you strengthen or save customer relationships. And - if used properly - they can boost growth.
3. A specialized NPS solution helps collect and analyze feedback from multiple channels
More data is harder to analyze. Yet, features like Survicate's Feedback Hub and NPS calculator help analyze the feedback - speed up the process and save working time.
4. Keep track of all customer journeys
To deliver a great customer experience that will satisfy a larger group, overseeing a singular touchpoint is not enough.
You need to look at the customer experience along the entire journey and all the journeys customers take.
According to McKinsey, companies with coherent customer journeys have much better business results. They enjoy increased retention and sales.
With multi-channel, it's much harder to create high customer satisfaction than with single-channel. Because it's not only individual touchpoints that make customers' experience. CX is the sum of all the experiences customers have had with a brand.
As a SaaS, you reach customers through different channels. You know how challenging it is to maintain the same quality across them all.
Most likely, you are understaffed and you need to act fast. If that's the case, you're the one who badly needs NPS software. It would help your team measure customer satisfaction regularly and without slowing down.
5. NPS tools are cost-saving
Buying a Net Promoter Score software, you won't splurge. Depending on the service provider and the pricing tier, the cost of a professional package is 100 - 200 USD. It's spending that startups can afford.
And the investment definitely pays off:
Your team cuts down on working hours necessary to create surveys and analyze the results.
Thanks to the integrations with Slack, Google Spreadsheets, Airtable, or Mixpanel the feedback collection becomes a natural part of your team's workflow. They can handle user feedback without extra adjustments to their processes.
The integrations with Intercomand Hubspot CRM or marketing automation tools like ActiveCampaign or GetResponse let you leverage existing customer communication channels. They enable you to choose the channel that is optimal for your customers and one that is bound to yield the best results.
Good NPS software offers white-labeling and personalizationfeatures. By using them, you to make the surveys feel on-brand and natural for your customers. You should eb able to customize your NPS survey to fit your exact needs. And you collect feedback without distorting the customer experience.
If you take into account how vital a coherent customer experience is, you'll realize customization is more than a whim.
Take a look at the data below, and you'll see our point:
A consistent multi-channel customer experience increases both customer satisfaction and willingness to recommend. As a result, high customer satisfaction, reflected in the CSAT and NPS metrics, translates into higher revenue growth.
Here is how customer satisfaction correlates with the bottom line:
Undoubtedly, keeping track of the customer experience and ensuring it's consistent all along the way pays off.
Types of follow-up questions answered and the answer given
User roles, department, and company types
The date a survey was submitted.
Analyzing such segments lets you better understand your customer base. As a result, you're able to draw more actionable insights to improve your software. And you can perfect your feedback collection strategies to yield better results in the future.
4. Notifications and access to feedback in real-time
Customized notification and real-time access to customer feedback are helpful if you try to sort out high user churn.
NPS platforms that offer those features will ensure you're notified in time. You can decide to be notified when any feedback flows in, when the feedback from detractors appears, or when you've got responses containing high scores.
This ties to what we've said about a consistent customer experience.
Your customers expect their experience with you to be coherent regardless of how many channels they use to get in touch. To be sure you meet this expectation, you should be able to measure customer satisfaction in a discrete, on-brand way. And you need to do so across for your customer channels and journeys. You're looking for a tool that would make it possible.
6. In-app surveys
Last but not least - good customer feedback solutions offer you the ability to send an NPS survey in your app. Being able to trigger an NPS survey in your app make is invaluable if your goal is to reduce churn. But, asking for feedback in the app has many other benefits.
It lets you:
Understand better user adoption of certain app features
Identify user pain points
Plan product road map
Optimize your pricing strategy.
If you worry that in-app surveys will damage user experience, don't. If customized and on-brand, they may enhance it and increase user engagement.
They can also boost customer loyalty. By asking for their opinions, you invite your users to co-create the product and take part in building the brand. As a result, users who have a say on the shape of the brand feel more connected to it and are less likely to walk away.
3 Best NPS Platforms Available for SaaS Companies [Comparison]
NET PROMOTER, NPS, AND THE NPS-RELATED EMOTICONS ARE REGISTERED U.S. TRADEMARKS, AND NET PROMOTER SCORE AND NET PROMOTER SYSTEM ARE SERVICE MARKS, OF BAIN & COMPANY, INC., SATMETRIX SYSTEMS, INC. AND FRED REICHHELD.