Are you looking for ways how to help product management, customer communications, reducing churn, and even finding investment? Setting up a robust NPS process can do that for you! In this post, we dive into five benefits of NPS that you might not be taking advantage of.

2. Introduction: 5 Benefits
Setting up a robust NPS process can help with:
- product management,
- customer communications,
- reducing churn,
- and even finding investment!
In this post, we dive into five benefits of NPS that you might
not be taking advantage of.

3. Find Product Market Fit
How do you know when you’ve found it? A good NPS score is
the perfect indicator!
Why do your Promoters love you? If it’s because your product
makes their life better, you’re on your way to product market
fit.
Double down on what’s already working well in order to
attract even more of your perfect customers.
Read more about analyzing your NPS scores in this blog post.

4. Personalize Relationships with Your
Customers
You can’t treat every customer the same. Measuring NPS
will help tailor your marketing and communications to each
user, so you can be sure they land on the mark.

5. Personalize Relationships with Your
Customers
Your Promoters: Those that answered 9 or 10 on their last
NPS survey; are usually willing to help you out. Why not get
even better acquainted with these power users?
Your customers who’ve responded with a 6 or lower; give
them a little extra love:
- a priority queue for support tickets,
- proactive calls offering additional coaching,
- a free trial of some new features.
They are at the highest risk of churn, so time spent
nurturing them will pay off in your MRR figures.

6. Predict Future Growth
Each response on an NPS survey indicates a risk of churn or
expansion in the future:
- higher risk of canceling or downgrading: score 4 or lower,
- lower risk: 8.
If we assign a risk percentage to each number, we can
actually predict the impact on future growth and churn.

7. Predict Future Growth
Experience shows that about 50% of detractors will churn
in the next 90 days, and 40% of passives will churn in the
next 180 days.
The good news is that you’re now able to target those
customers based specifically on their risk of churning.
Ben Dansie on Twitter
Bonus: You can also track how many customers your
Promoters refer. By moving more customers into the 9-10
range, you’ll see a bump in referrals!

8. Reduce Churn
Detractors are closer to Promoters than they are to Passives.
Surprising? Because Detractors have feelings towards your
brand, they are more invested in making it work. Fixing their
concerns will earn their loyalty.
You also have the silent majority – 60% –of customers who
haven’t replied to a survey. But they likely have similar
concerns to those customers who have responded.

9. Reduce Churn
Analyzing the bigger picture will show you where small
changes can bring the most significant results:
- a persistent bug that is dragging down your score,
- a missing feature would convert some of those passives to
promoters.
Besides responding on an individual level, analyzing your
overall results will help you bring down churn holistically and
dramatically.

10. Get Better Investment Deals
Some investors place such high importance on NPS that they
will even provide a better investment deal for companies with
a proven good NPS score. Jason Lemkin, the investor at
SaaStr, recently tweeted that he would invest at the same rate
in companies with good NPS score (well over 40) compared
to companies with a higher MRR.

11. Get Better Investment Deals
Focusing on acquiring the right customers means that your
current MRR is at a lesser risk of churn.
Phillip Klien, General Manager of Uber agrees: “Many
private equity firms & venture capitalists will insist on
performing a Net Promoter Score survey with your customers
before they invest in your business.” he explains, stating that
Sequoia Capital, a leading SaaS investor has all of their
investments use NPS to gauge potential growth.
For example, Zoom, a SaaStr investment currently has an NPS
of 68, which is extraordinarily high.

12. Unexpected Benefits of Striving for
Good NPS Score
Embracing an NPS program across the organization will help
focus every employee on the end goal – a product that
customers love to use and talk about.
When you start creating a common goal, you’ll see benefits
pop up in all sorts of unexpected places. From the way
engineering conversations happen to having more aligned
hiring priorities, being an NPS driven company will change the
way you work.

13. Give us a shout!
Explore the most advanced world of customer satisfaction
survey tools. 💡
Give us a shout; we’d love to chat about your needs! 👋
Read more here.

14. We pick companies because of their products,
but we often leave them because of
theirs service failures.
Matthew Dixon, Nick Toman, Rick Delisi
THE EFFORTLESS EXPERIENCE
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Katarína Kasalová
katarina@nicereply.com
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