265: How To Use Nps Surveys To Grow Your Company
In this episode, Steli and Hiten talk about NPS surveys, the importance of carrying them out and how they can be beneficial to your startup as a whole.
NPS stands for Net Promoter Score and is a customer satisfaction score created by Bain and Company. When carried out properly, NPS surveys give you an idea of how your customers feel about your company.
They have become very popular with startups in the last few years. However, due to the nature of the surveys, they also have some criticisms. For example, some critics point out that results are arbitrary and “made up”.
Tune-in to find out more about NPS surveys, at what stage to conduct them in your startup, the importance of tracking your business’s progress through customer ratings, and much more.
Time Stamped Show Notes:
00:00 About today’s topic.
00:35 What NPS is all about.
01:08 Some criticisms of NPS surveys.
01:45 Some benefits of carrying out NPS surveys.
02:47 The current state of NPS surveys in the startup world.
04:00 A mistake Steli made at Close.io.
04:30 How Close.io surveys their customers.
05:30 Why we’re talking about NPS surveys today.
07:28 A major reason why companies are not consistent with NPS surveys.
08:12 What “Allergies to processes” means.
09:05 Another major benefit of carrying out NPS surveys
09:20 Some tools you can use to carry out NPS surveys.
10:22 Some things to keep in mind when carrying out NPS surveys.
3 Key Points:
Surveying customers is not a bad thing. Annoying them with lots of surveys is a bad thing.
If you’re not doing it on a regular basis you’re missing out on a key part of your learning process.
NPS surveys help you figure out if improvements you’re making at your startup are good for your customers.
Steli Efti: All right everybody, Hello, this is Steli Efti.
Hiten Shah: And this is Hiten Shah. And today, we're gonna talk about NPS surveys. See, we like talking about more than just sales and marketing.
Steli Efti: We just want to bullshit and chat about business and life, and hopefully while we're doing that, provide a lot of value to people.
Hiten Shah: The world's best business podcast. Shit.
Steli Efti: Oh, shit.
Hiten Shah: For people trying to get shit done.
Steli Efti: Done, yeah. We don't want to give you feedback that's bullshit.
Hiten Shah: Yeah we want you to do your best. Which is short for Net Promoter Score and we talked about it in a prior episode, about early access and competitor research. It's something, I think ... NPS, Net Promoter Score is a customer satisfaction score. It's a methodology created by Bain and company. It's actually a registered trademark, but there are a lot of tools that let you do it. It's a simple zero to ten question, which, the question is basically how likely are you to recommend this product, and it's very popular. Lots of companies have adopted it and more recently, in the last few years, startups have really become drawn to it. There's also some controversy around it because some people say it's just arbitrary and made up, because based on the response from zero to ten that someone gives, they are bucketing it into one of three groups. They are either promoters, detractors, or do you remember the last one, Steli? promoters, detractors, or ...
Steli Efti: Passive! Passive.
Hiten Shah: Yeah.
Steli Efti: Passive. Yes. And you, it's just based on their score. Nines and tens are promoters, and the rest is split up between detractors and passive. And so it's become super popular but it's arbitra...