Net Promoter Score (NPS) for SaaS/Web application

Published by Nilesh Chintawar on

What is NPS?

Net Promoter Score, a concept developed by Bain and Company, now it has become standard to measure customer loyalty. To measure customer sentiments, over the period, NPS has replaced customer surveys and long feedback forms. NPS gives a realistic picture of customer sentiments. For example, a customer may have given negative feedback on an instance, but that does not mean he or she does not value your product or services.

NPS helps the way to capture the real sentiment of a customer, whether he is a promoter or a detractor.

NPS Survey 

It consists of two questions:

Based on the score given in the first question, users are classified as:

  • Promoters- Users with a high score and have positive feedback.
  • Passive- Users with intermediate scores and have neutral feedback.
  • Detractors- Users with a low score and have negative feedback.
How is the NPS score calculated?

Net Promoter Score is calculated with a simple formula:

NPS score = %of promoters – %of detractors

Fibotalk provides a one-stop solution as it offers NPS as a feature that can be configured very easily.

Why choose NPS?

NPS not only helps to understand customer sentiments and their feedback but helps you analyze and predict churn, retention, and revenue.

Some of the few reasons to implement NPS are listed below.

Competitive Market: In Saas, business competition is ever-growing day by day. With new products launching at a pace and thriving by getting a slice of the same pie. As a result more and more options are available to customers.

Increasing CAC: Fierce competition has increased the cost of customer acquisition.  Therefor customer retention is very crucial for success.

Statistics says new customer acquisition cost is 2 times more than retaining a customer.

CX a new paradigm: Customer sentiment will let you know their views about your product. Take the right action at the right time, resolve issues, take your product in the right direction.

NPS is not a one-time activity

NPS is a continuous process to measure important product KPIs, which are dynamic in nature. We classify the user in three categories passive, promoter, and detractors. In their lifecycle, users may move from one category to another. This makes it imperative to track NPS continuously.

It also gives insights to predict customer churn well in advance, helping to take all measures to retain the user.

Categorize users and build your strategy
  • Understand the reasons for detracting users.
  • Assign the best of resources to move them up to promoters.
  • Learn from promoters what is working for them and try to replicate with others.
  • Understand the persona of each category and customize campaigns and communication.
  • Get user expectations from the product.
  • Each user category needs specific communication for effective retention, build campaigns based on target users.

Persistent but small improvement makes one winner.

One may be at the top, but in a fast progressing tech environment, it is easy to catch you technically.

Understanding the customer, their goals, and their relationship gives you a huge competitive advantage. Tools like NPS help track these parameters regularly.

NPS is not only numbers, but feedback given along with it can also give a good insight into real sentiments. For example, what problems detractors are facing, or what is making promoters loyal. These insights help to make that little tweaks in product features, customer support communication.

Distribution of NPS

We know the importance of NPS, but it is not straightforward to get a response from the customers. How to reach out to the customer to get the maximum output?

In the Saas product, there are mainly two methods to collect NPS

  • Email: Send an email with a link to the NPS survey.
  • In-app messaging: Push message to the user when he is using the application.

Even though both methods are contextual, In-app messaging is more engaging, has better reach, and more contextual. For Saas, in-app messaging is the most suitable, can be delivered based on the defined event, timing, usage pattern, or customer profile.

There are no hard and fast rules, but there are some best practices to implement in-app messaging NPS surveys. Define some important events of customer success. For example, they activated some features or crossed certain thresholds like product usage in the last 2 quarters.

Not too early nor too late: NPS Survey to be conducted at the right stage of the user journey. Do not be too early and let your new customer explore the product and get the expected results. Feedback sought at this stage won’t be relevant. The best time to get feedback is when a user has achieved some specific milestone or activated new features.

NPS is a continuous process, but don’t overdo: User profiles may change as the product evolves. They may move from promoter to passive or detractors to passive. It is important to track user sentiments periodically. In the absence of tracking, you may miss engaging the customer at the right sentiments.

Fibotalk has designed the NPS module keeping the following in mind 

1 Saas business KPI

2 Challenges in a delivery mechanism

3 Tracking product usage 

4 Engaging customer to give NPS on specific events

5 And most important easy integration with the product, 


Leave a Reply

Your email address will not be published. Required fields are marked *