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The path to a 70 NPS score

Net Promoter Score (NPS) is a powerful tool for product managers to gauge customer satisfaction and loyalty. By asking a simple question—“On a scale from 0 to 10, how likely are you to recommend this product/company to a friend or colleague?”—you can uncover valuable insights.

Having deployed NPS in two of my companies, I quickly realized the significance of this 10-point rating system with an open text field. It goes beyond mere benchmarking; it shapes cultural change, improves experiences, and builds lasting customer relationships. These relationships, in turn, impact the business on a financial level.

Let me break it down for you:

  1. Promoters: These are your enthusiastic and loyal customers. They’re likely to be brand ambassadors, leaving positive reviews, engaging on social media, and recommending your product or service to others.

  2. Passives: Satisfied but not overly enthusiastic. They won’t actively promote your brand but won’t discourage others either.

  3. Detractors: Unhappy customers who may not buy from you again. Their loyalty is low, posing a risk of churn.

The NPS score is calculated by subtracting the percentage of detractors from the percentage of promoters. A perfect NPS of 100 is rare, but top-notch companies generally aim for scores above 70. When your NPS is high, you know you have a healthy relationship with customers likely to fuel word-of-mouth growth.

Remember, NPS isn’t just a number—it’s a strategic tool that drives positive change and connects your company with its customers. 🌟

Case in point - In a revealing incident at Radicle Health, a pivotal lesson unfolded regarding the power of attentive customer engagement. It all started when one of the CEOs, brimming with enthusiasm, advocated for the implementation of Gong within the sales team. However, unforeseen technical glitches marred the initial experience, leaving her thoroughly exasperated. In a moment of frustration, she didn't mince words, assigning Gong a dismal 0 on the Net Promoter Score (NPS) and venting her grievances in the comments section.

To the surprise and eventual delight of our CEO, her scathing feedback didn't fall on deaf ears. Almost immediately, she found herself in dialogue with Gong's Chief Product Officer (CPO), a move that might have been prompted by an automated response triggered by the low NPS score. This swift intervention paved the way for a constructive exchange, allowing her to articulate her pain points directly to a key decision-maker at Gong.

The outcome was nothing short of transformative. Empowered by the opportunity to voice her concerns to someone with the authority to effect change, our CEO underwent a remarkable shift in perspective. From a vocal detractor, she emerged as one of Gong's most ardent advocates, championing its merits with newfound zeal.

This anecdote serves as a poignant reminder of a fundamental truth: customers crave avenues for meaningful engagement with the higher echelons of organizations. All too often, grievances are relegated to the realm of support tickets, consigned to the purview of customer service teams without ever reaching the ears of decision-makers.

Indeed, the journey from dissatisfaction to advocacy is often catalyzed by the simple act of listening. By affording customers a platform to express their frustrations and concerns directly to those in positions of influence, organizations can foster a culture of transparency, empathy, and responsiveness.

In essence, the tale of our CEO's encounter with Gong underscores the imperative of proactive customer engagement. By prioritizing open channels of communication and demonstrating a genuine commitment to addressing customer feedback, businesses can not only mitigate dissatisfaction but also cultivate unwavering loyalty and advocacy.

Ultimately, in the realm of customer relations, every interaction represents an opportunity—a chance to not only rectify past missteps but also forge enduring bonds built on trust, understanding, and mutual respect.

"Customers care more about being heard than being right"

I couldn't find a single guide on the internet that taught you how to make the most of the NPS score and decided to make a no BS to the point guide. Here are some tips and tricks to move the needle in your favour

Understand Diminishing Returns

The frequency of reaching out to customers directly correlates with the likelihood of receiving complaints. While quarterly NPS collections might seem logical initially, transitioning to bi-annual collections can mitigate the phenomenon of diminishing returns. Through firsthand experience, I observed a significant improvement in comment quality with this adjustment. Remember, NPS scores are not just numbers; they serve as gateways to valuable insights embedded within customer comments.

Categorize NPS Comments into Themes

As NPS feedback floods in, categorizing comments into themes becomes imperative. This process sheds light on the underlying drivers behind fluctuations in your NPS. By identifying recurring themes such as design-related issues or system improvements, you gain clarity on areas requiring immediate attention. This categorization is instrumental in prioritizing future endeavors and enhancing overall product/service quality.

Set Up Conditional Responses

Modern tooling facilitates the segmentation of customers based on personas. Utilizing tools like Pendo, you can tailor responses according to the profile of the respondent. For detractors, automated email chains can solicit additional feedback, while personalized outreach with a calendly link, perhaps from the Head of Product, can be reserved for key decision-makers. Investing time in direct communication with customers can alleviate churn-related concerns and foster long-term loyalty.

Do Not Focus Solely on Promoters

While achieving high NPS scores is undoubtedly gratifying, fixating solely on promoters can be detrimental (pride is a cardinal sin after all!). Detractors and passives often serve as early indicators of underlying issues. By channeling efforts towards converting detractors into passives or promoters, you unearth opportunities for innovation and refinement. Understanding the catalysts for conversion unlocks invaluable insights into enhancing your product/service offering.

It's All About Timing

Timing plays a pivotal role in eliciting constructive feedback from users. Through meticulous experimentation, I discovered that users are most receptive to providing detailed feedback right before lunchtime. Leveraging this insight, scheduling NPS surveys during this window yielded a substantial increase in response rates. By optimizing survey timing, you maximize the likelihood of receiving actionable insights from your audience.

Churn Indicator

In the realm of private equity, where revenue preservation reigns supreme, churn prevention assumes paramount importance. Implementing a renewal tracker, integrating NPS scores alongside qualitative and quantitative data, equips CX teams with invaluable resources during renewal negotiations. Augmenting this tracker with RFM scores provides a comprehensive overview of account health, facilitating proactive strategies for retention and growth.

In conclusion, mastering the art of NPS optimization entails a combination of strategic planning, attentive listening, and agile adaptation. By implementing the aforementioned strategies, businesses can harness the full potential of the NPS score, driving sustained growth and fostering enduring customer relationships. Remember, in the pursuit of excellence, there's no room for complacency or shortcuts—only a relentless commitment to customer-centricity and continuous improvement.


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