NPS

Hey there! We’ve all been there. You spend time and energy getting customers through the door, only to watch them slip away faster than you can keep up. It’s frustrating, right? That’s exactly what Lisa, a CRM expert, tackled in a recent meetup. She talked about the Net Promoter Score (NPS) and how it can give you the feedback you need to figure out why your customers leave—and, more importantly, how to find out how to keep them around.

In this article, I’m going to break down Lisa’s advice so you can take that NPS data you’ve been collecting and actually do something with it. Sounds good?

What is NPS? And Why Does It Matter?

Alright, first things first: let’s talk about what Net Promoter Score (NPS) actually is. NPS measures how likely your customers are to recommend you to others. The idea is simple: the more people who would recommend your product, the more loyal your customer base.

It’s all based on one, standardised, question: “How likely are you to recommend us to a friend or colleague?” Your customers answer on a scale of 0 to 10:

• Promoters (9-10): These are the people who love what you’re doing. They’re the ones who will stick with you and tell everyone they know about your service.

• Passives (7-8): They’re satisfied, but not overly excited. They might switch to a competitor if something better comes along.

• Detractors (0-6): These folks aren’t happy. They might even steer others away from your service.

Here’s the catch: while that NPS score gives you a sense of customer loyalty, it doesn’t give you the full picture. As Lisa said, “A number alone doesn’t tell you what’s really going on. It doesn’t answer the question: WHY?” You need to dive into the comments to understand what’s driving those scores.

How to Turn NPS Data into Useful Feedback

Now that you’ve got your NPS score, what do you do with it? Lisa shared some practical tips on how to get more value from the feedback your customers are giving you.

1. Extract Themes and Affinities

Start by grouping customer comments by similarities. Group them and apply headlines to the new clusters. Then start grouping the headlines to a framework of motivations, frustrations, goals and technical issues. This process is called affinity mapping, and it helps you spot patterns and extract qualitative insights to your customers' comments.

2. Categorization and Sentiment Analysis

Some people might give you a high score but still mention something they’re not happy with. By applying categories to those comments (positive or negative, type of service mentioned etc.) and linking them to specific phase of your customer lifecycle (like onboarding, first purchase), you’ll get a much clearer view of what’s driving customer satisfaction—or dissatisfaction. Most important: Monitor the NPS constantly and throughout the whole customer lifetime and not only after a certain touchpoint like service requests.

Let’s say someone gives you a 9. Great! But in their comment, they mention that your product is a bit too pricey. That’s valuable information. Even though they love your service, you now know there’s something that could be tweaked to keep them around for the long haul.

Use Different Touchpoints to Collect Feedback

While email is the go-to way for collecting NPS data, it’s not the only option. Lisa suggested using other touch points throughout the whole customer lifetime, like after first purchase, after returning a product, after a certain usage time of the product or after a certain time of inactivity. By getting feedback at different stages of the customer journey, you’ll have a more complete understanding of how people's loyalty and happiness develops over time.

Putting NPS Insights into Action

Once you’ve got your NPS data, it’s time to do something with it. Lisa shared a few practical ways to put those insights to work.

1. Make NPS a Company Wide KPI

Lisa’s first tip? Make NPS a key metric in your business. Not only on one team like customer service, but for every team. Track it regularly, and use it to see how your customers are feeling over time. The more you pay attention to it, the better you’ll be at spotting issues before they become big problems.

2. Use NPS to Improve Your Product, Service, Marketing and CRM

NPS isn’t just about customer service. It’s a tool for your product and CRM teams, too. If you’re seeing recurring issues in the feedback, that’s a signal to make some changes. By addressing the complaints that come up often, you can make meaningful improvements that keep customers happy. Plus, you can use NPS to track if the solution corresponds with customers needs.

3. Turn Promoters into Advocates

One of the ways to use NPS is to focus on your Promoters—those who scored you a 9 or 10. These are your happiest customers, so why not ask them to leave a review or refer a friend? Lisa shared a story about how one business used NPS to get more positive Google reviews, simply by reaching out to their Promoters. The result? A big bump in reviews and an overall better rating.

Audience Q&A: Practical Tips from Lisa

Lisa answered a few questions from the audience, and here are some of her best tips:

Question: How do I know if my NPS data is reliable if I’m only collecting it through email?

Lisa’s Response: Start with email, but try to expand into other channels like in-app surveys or post-purchase feedback. The more touch points you use, the more accurate your data will be.

Question: Can I automate the way I categorise NPS comments?

Lisa’s Response: Automating feedback categorisation is tricky. You can start by manually tagging comments to get a feel for the main themes, and over time, train tools to help automate the process. But you’ll still need some human oversight to ensure accuracy.

Key Takeaways

• NPS is more than just a number: It’s a tool to gather meaningful feedback from your customers.

• Pay attention to the comments: That’s where you’ll find the real insights.

• Use NPS to make improvements: Whether it’s your product, your CRM, or your customer service, NPS can help guide you.

About the Speaker

Lisa Hütteroth is a CRM expert, located in Berlin, with over 10 years of experience. She’s worked in a variety of industries, from insurtech to online dating, and is passionate about helping businesses improve customer retention. When she’s not working, Lisa enjoys barbecuing and geeking out over science fiction. You can connect with her on LinkedIn to discuss on CRM and customer feedback strategies.

About the Meetup

Organised by Audrey Mann and Jessica Jantzen, the INSIDE CRM Meetup is a platform for CRM professionals to share insights, strategies, and success stories. It brings together experts from various industries to discuss the latest trends and innovations in customer relationship management.

Disclaimer: This article has been generated with ChatGPT based on an audio transcript and presentation slides from the INSIDE CRM Meetup. The content has been reviewed by the presenter to ensure accuracy and relevance.