Customer experience professionals live in a world overflowing with data. Sitting on that wealth of information is frustrating when you know it has incredible potential.

If you are tracking CX metrics, like NPS or CSAT, the numbers help you quantify customer loyalty and satisfaction. But it’s the customer comments that come with those surveys, all of that rich qualitative data, that give you invaluable context for why customers feel the way they do.

Until now, it’s been difficult to analyze qualitative data because it is so unstructured.

This is where tagging comes in.

Using software to analyze qualitative data

Modern customer feedback software comes with the ability to tag customer comments. Tagging feedback has two functional goals: Routing and Insight.

Routing:

Creating a tag for specific stakeholders, e.g. “product”, quickly sorts feedback to be routed to the correct teams for follow-up. Product teams can simply click a button to see verbatim comments regarding feature requests and support teams can be more proactive by checking for comments under a “bug” tag.

Insight:

Tagging comments by relation to product, website, or customer experience helps themes emerge. For example, you may see that most of your detractors are tagged with “shipping” or “price”. This will help you prioritize and address issues in real-time.

Tagging comments manually doesn’t scale, however.

If you are receiving less than 100 comments a month, manually tagging comments can work. But customer comments can pile up just like emails in your inbox. Constant monitoring results in little else getting done. When you find yourself drowning in responses, CX feedback can feel overwhelming — just like your inbox.

This is where using software to auto-tag customer comments saves the day.

Auto-tagging gives you real-time categorization of large quantities text feedback

Auto-tagging automatically sorts qualitative comments for you using AI-powered text analysis, and it happens in real-time. This helps you surface themes and see trends that the human brain has trouble processing on its own.

For example, you may find that pricing issues are mentioned in 80% of your detractor comments in the past couple months, or a new feature is mentioned in 65% of your promoter comments since it launched.

Auto-tagging serves as a dynamic tool to quickly sort massive amounts of feedback for routing to the appropriate teams for insight and immediate follow-up.

We’ve provided the first steps and some suggestions to start auto-tagging in real-time.

How to set up text-match Auto-tags

The time you save by setting up an auto-tagging system can be spent taking action based on the insight lifted out of your survey feedback.

If you aren’t using machine learning software, here are the steps to take in planning your text-match auto-tagging system and some suggestions to get you started.

First, Some Questions to Ask Yourself

When you start to tag your feedback, read every comment you receive in a period of time, perhaps a week or a month, and consider the following:

• What topics/features/issues stand out in your comments?

For example, you may see that many of your customers talk about your Support team’s response time, or the value your product/service has brought to them. These general themes will serve as jumping off points for brainstorming tags and keywords.

• Is there industry or business specific vocabulary or jargon that you might want to track?

For SaaS companies, you may want to include terms like “dashboard”, “widget”, or “in-app” as tags or as text-match keywords. Oftentimes, these terms will be abbreviated, like UI for “user interface”. 

You can even choose to create tags for team members to alert them whenever they are mentioned by name. This might be helpful for a customer support agent who wants to see what customers are saying about their interactions.

As you read through your sample of comments, make a note of the words and phrases you spot customers using. They may be using different terms than the language you and your colleagues use as professionals in your industry.

• Which teams will you be sending customer feedback to and what terms are relevant to them?

You want to be routing comments to the right teams. For example, a product development team will be interested in comments about user interface, integrations, or feature requests while your support or success team may be more concerned with bugs or implementation.

Nested Tags or Parent-Child Tags for Tag Hierarchy (SaaS example)

Once you’ve answered these questions, start grouping specific terms under broader terms. This is going to help you create hierarchy within your tags, also called nested tags.

Nested tags are labels associated by a hierarchy. The ‘sub-tag’ or ‘child tag’ is a tag that is more specific and can be categorized under a ‘parent tag’.

When any of the ‘child-tags’ are text-matched to a comment, feedback platforms will also tag that comment with the corresponding ‘parent tag’. Comments tagged with only the ‘parent tag’ do not include any of the words associated with any of the ‘child-tags’.

This allows you to pull comments that mention any of the specific integrations through the child-tags. At the same time, the broader “integrations” tag pulls comments that mention integrations in general, e.g. suggested integrations from our customers.

Choosing Text-Match Keywords or Keyphrases

For auto-tagging, it is important to choose the right words or phrases to match the tag to the comment. Text-match tags use an “exact match” rule for automation.

This is where having read through some of your current open-ended feedback is useful. You’ve seen the specific words that your customers tend to use when writing about different issues. It may also be helpful to use a thesaurus to come up with synonyms for the words or phrases you choose to match on.

Remember that text-match is very literal, so you will need to include variations on the words and phrases you choose. For example, an “implementation” tag should match on “implement”, “implemented”, “implementation”, and “setup”, as well as “set-up”.

Suggestions

We’ve compiled a list of auto-tags that are commonly used by SaaS businesses. You may be able to use some of these in other industries as well.

As you start to receive feedback you should refine your tags to be more specific to your business needs.

Here’s a list of common tags for SaaS companies to start with:

Human Review: Manually Tagging for Refinement

Monitor your feedback for a couple weeks after you set up your auto-tagging system. If a comment should be tagged, but isn’t, add more keywords to the text-match tag. Manually tag any comments that are difficult to text-match.

A good example would be a comment like “I tried to connect your software to my CRM but it didn’t work.” This comment is clearly related to integration, but text-matching wouldn’t catch this. After manually tagging this comment, you can then add “connect your software” as a keyphrase to the integration tag.

Human review becomes a tool for refining your existing auto-tags, instead of the main workhorse. As time passes, you’ll spend your time scanning for edge cases and new issues or topics that require a new auto-tag.

Do this check periodically to ensure your insight is accurate. Maintaining your valuable tagging system will save you time in the future.

Feedback Routing & Driving Action

Surveying customers is the first phase in your transformation into a more customer-centric company, but you will plateau if you sit on the feedback. Setting up an auto-tagging system means feedback is sent to relevant teams in your organization in real-time. Trends are lifted more easily from qualitative feedback, and your customer-centric organization will be empowered to actively pursue customer happiness.

When was the last time you completed the long survey you ask your customers to fill out? This is a painfully obvious (and obviously painful) exercise you can do to assess the customer experience of your surveys.  If the survey is long, you will probably find it a boring, tedious task to parse and answer the questions. Impatience grows as you face a seemingly endless list of attributes to assess. 

If this is what you are subjecting your customers to, know that you aren’t alone. Many companies are content with the status quo of traditional, bi-annual, 10+ question surveys, or they simply aren’t aware of alternatives.

But times have changed — and your customers aren’t having it.

Traditional, long surveys are a lose-lose situation

Not only do multi-question surveys have the potential to irritate customers, they have disadvantages for business as well.

 You are not hearing from enough customers.  Completion rates are abysmal. Studies show that the longer a survey is, the higher the chance of decreased, delayed, hasty or slapdash responses. So, the information you are getting from customers who are willing to run this gauntlet may not be thoughtful.  

Not hearing from customers often enough. Surveying once or twice a year means you can only react to feedback once or twice a year! In a quickly changing market, this is unacceptable. More agile competitors are going to leave you in the dust.

What can you do to solve this lose-lose situation? Modernize your feedback methodology with microsurveys.

What is a microsurvey?

Microsurveys take a well established, standardized question and use it as the first in a two-step survey. This first question can be used to measure Net Promoter Score, Customer Satisfaction Score, and Customer Effort Score, providing you with quantitative feedback. The second step then provides a way for respondents to give open-ended feedback explaining their score.

Here is an example using an NPS microsurvey shown to a customer who is logged into a SaaS application. A similar microsurvey can also be delivered via email, mobile, or SMS.

Your first reaction might be “How can I possibly get all the information I need with such a short, open-ended survey?  And, how can I make sense of all of the qualitative responses?

Let us walk you through how you can get what you need — and more.

Advantages of always-on microsurveys 

Microsurvey design looks at feedback collection from the customer’s point of view — it should be easy, fast, and relevant. The results are a significantly improved customer experience. Microsurveys provide three key benefits to you:

• Real-time trends
• High response rates
• Better insights

Real time so you never miss a trend:

With support of a customer experience software platform, it becomes easy to survey customers throughout the customer journey.  You can forgo your annual survey campaign and get a on-going pulse of real-time feedback on journey points.  Shortening your surveys allows you to ask customers for feedback more often. By asking the right question at the right time, you increase the chance that an individual will respond to your surveys. Deploying microsurveys across the entire customer journey will bring you both a bird’s eye view of the health of your account and detailed, actionable insights at each touchpoint.

High response rates means you hear from more customers:

Response rates can be as high as 60% for microsurveys, and typically exceed 25%. These numbers can seem miraculous compared to the significantly lower rates that long-form surveys attain. By asking a single question in the right channel at the right time, customer are more willing to give feedback.

Better insights:

Microsurvey responses will reflect what is important and relevant to your customers. Because you are no longer leading the respondent, you will learn things you wouldn’t otherwise learn. The qualitative feedback you receive is rich with context and potential to drive your business priorities.

Now, all of this may sound good but there are still barriers to making the switch, right?

Reasons why you are still using long form surveys

I can’t aggregate survey results when feedback is open-ended!

The advantage of endless Likert scale questions is that responses on a wide range of topics and attributes can be tallied and metricized.   This makes things easier for you on the back end. However, every time a customer must chose a response from a range of values, you are putting the onus of quantification on him or her. You risk asking them to evaluate something they do not know or care about.  Response quality, completion rates, and customer experience all suffer.

A modern approach is to save your scale questions for established CX metric questions like Net Promoter Score, “How likely are you to recommend [business] to friends and colleagues?”, and take the support of machine learning technology to quantify opened survey responses.   

Today, you can take the burden of quantification off of customers and place it squarely on machine learning software. In the past, getting insights from large quantities of qualitative data has been hard, if not impossible. Technology is now available to auto-categorize all of that rich, qualitative feedback. Auto-tagging and sentiment analysis have come a long way!

For example, this dashboard screenshot shows an analysis of auto-categorized NPS feedback. Auto-tagging reveals themes in qualitative comments so you can know what promoters, passives and detractors are talking about in real time.  

I need to ask a series of questions to get important information from our customers.

Every question you add is less likely to be answered with your respondent’s full attention and engagement. Asking a single scale question and an open ended question captures high quality data that is both qualitative and quantitative.

It feels counterintuitive to open up feedback to be a free-for-all; however, customers want to tell you what’s on their mind at the time you survey them. Asking exclusively about what is important to you is frustrating for the customer. Like the saying goes, you can lead a horse to water, but you can’t make it drink.

Getting the information you want is less obtrusive if you send customers a short survey at the right time. For example, you can send an microsurvey asking about how easy a transaction was to complete or how easy a feature was to use. Customers no longer have to reach into the depths of their memory to retrieve their impressions because they just completed the task you are asking about.

Asking for feedback at touch points over time, in the right context, creates a story of your customers’ journey and allows you to see trends, just like how thousands of photos can be combined to create beautiful stop-motion animation.

Beware of using incentives to make up for poor response rates, you will find a higher percentage of “satisficers”, or respondents who select answer options quickly and thoughtlessly to get to the incentive you promised them for “completing” their survey.

Of course, there is a time and place for long surveys.

There is nothing wrong with using a lengthy survey when you really need to — and there will be times when an in-depth questionnaire is appropriate. Here are two examples:

Annual “Brand” survey. Our customers use microsurveys to keep a finger on the pulse of their entire customer base throughout the year for customer journey feedback. Some also use an annual brand survey that supplements by asking many in-depth questions. Even though response rates for this survey may be low, they know they will hear from their most engaged customers on a variety of topics. And, with their microsurvey program,  they still get feedback from everyone else.

User interviews. Product teams may conduct focus groups or interviews to get more sophisticated feedback on feature use, build out an understanding of use cases, and create detailed personas. Microsurveys such as NPS help narrow down who should be included in these focus groups and who would be open to being interviewed.

How to start? Shift your Net Promoter Score program to microsurveys.

If you want to try real-time microsurveys as a baby step towards modernizing your feedback program, use always-on NPS microsurveys as one component of your feedback strategy. You’ll still send out your long, in-depth survey to decision makers like you always have, but now with an early warning system to help you proactively keep your most important accounts.

Entelo was able to double their survey response rate with this method, using NPS microsurveys for a better understanding of customer health. The real-time feedback also meant fewer surprises and easier prioritization when it came to addressing customers’ problems.

Gathering Net Promoter Score feedback isn’t just about receiving critique and feature requests. An important growth component of an NPS customer feedback program is identifying your promoters, then engaging and activating them for upsell, referral or advocacy. But there is another benefit to identifying promoters — the feelings you get from their verbatim comments–gratification, inspiration, motivation, and satisfaction!

Promoters that are finding value in your brand can give some incredibly uplifting compliments that boost morale and provide a sense of pride for employees.

We’ve gathered some example comments from SaaS companies that use Wootric software to measure Net Promoter Score, analyze trends, and close the loop with their customers. Each company provided a screenshot of a favorite promoter comment from their InMoment dashboard.

Imagine how the team at presentation software Slidebean felt when this NPS survey response appeared:

The stellar customer service at point-of-sale software Revel Systems is what got this promoter excited:

The team at video coaching platform Sibme was stoked when they read this:

This NPS response gives mortgage software company Maxwell props for their customer-centric culture:

This kind of feedback contributes to feelings of accomplishment and meaning for employees, leading to more engagement and a happier work environment. Research done for the UK government showed that companies with a highly engaged workforce see a 19.2 % growth in operating income over a 12-month period. Additionally, companies with an engaged workforce grow profits up to 3X faster than their competitors.

With this comment, the whole team at e-signature software Signable can see the value they are creating for their customers:

Make sharing customer comments part of your NPS program

To get the most out of your NPS program, share your NPS along with select verbatim feedback across your entire organization. This provides context to your metric. Sharing customer requests and frustrations is a great way to create urgency around service and product improvement. It makes the problem less abstract and gives employees an emotional connection to the work that needs to be done.

In the same way that you would share constructive critique, make it a habit to share promoter comments. This provides you and your employees with the opportunity to celebrate the things you’re doing right and makes it real. When specific teams or individuals get mentioned, reach out to them and share. It is a great way to let them know they did an awesome job! It’s always great to feel appreciated and acknowledged.

Make sharing promoter comments easy by:

1. Sharing it on a Slack channel – with Wootric’s free integration with Slack, you’ve got an easy way to spread the joy from reading promoter comments. Tag folks who were involved with different steps that culminated in the customer’s compliment and give them a pat on the back!
2. Gathering the superstar comments to share at an all-hands meeting or Board meetings, along with your NPS score. This not only gives people the numbers they want to see, but also provides the story behind the number.
3. Featuring promoter comments in your newsletter – whether it’s an employee newsletter or a customer newsletter.  Sharing positivity from customers makes everyone feel listened to and appreciated.

Having comments feed into Slack here at Wootric has helped us to monitor customer sentiment in real-time and keep everyone in the company close to our customers’ experience. Any issues are dealt with quickly, and promoter comments like these get everyone excited.

Promoter comments are a win for everyone

The Net Promoter Score system is a proven way to drive growth, and it is a delight when you get comments like the ones above. It is a positive feedback loop that creates more value and positive experiences for customers and a supportive, enjoyable work environment that encourages engagement for employees.

And to our own customers, know that we truly appreciate the time and thought that goes into every survey response you give us! We are listening. 

You’ve decided to implement an NPS program to increase customer loyalty, but now you’ve got to wade through the pool of NPS software service providers to find the best value and match for your company. All of them allow you to ask that all important question, “On a scale of 0 -10, how likely are you to recommend this product?”, but the similarities end there.

Round Up a List of Prospects

Ask around about the NPS software other companies are using. Resources like Quora can give you ideas to add to you list and oftentimes, you can read reviews of companies. If you come across a survey that you like, reach out to the company to ask who they use. This list of prospects can be as long or short as you want, but we recommend you keep this list to around 5 companies.

What is your goal?

It is vital for you to establish the goals you want to achieve through implementing an NPS program. Are you looking to move your company towards a customer-centric culture? Are you trying to improve your retention rates? Are you looking for growth?

Maybe you’ve used an NPS platform before and now you’re looking for something that’s faster, better, stronger! You’re probably looking for a platform that’s more efficient, easier to use, offers a more modern approach (like in-app messaging), or is more aligned with your stage of growth.

Whatever your goals are, have them handy as you answer these next three questions and have the peripheral conversations for each, guiding you toward the NPS software with a Cinderella fit for your company.

Get all 8 questions and a handy vendor evaluation spreadsheet with our free e-book!

Questions

1. What is the best way to survey your customers?

You probably communicate with your customers in a number of ways – on your website, through your web or mobile app, via email, social media accounts and possibly even through text. Each segment of your customer base will prefer one or two of these methods over the others, and very rarely will they use all of them.

Some conversations to have around this question include: Who are your stakeholders? Who are the decision-makers, and are they the same people using your product on a daily basis? Depending on your answers, you will want to choose different channels to send your NPS survey.

2. Which channel do you want to start with?

Everyday, we have people come to us asking about email NPS surveys, unaware that there are other option available to them. If you’ve answered the first question, then you now know that email isn’t always going to be the best fit. Follow-up the conversations you had with the previous question by weighing the pros and cons of each channel. Keep your short and long term goals in mind, as well as the customer segments you wish to reach out to.

There’s no shame in starting small – it’s not easy to take on a huge customer feedback program if you’re just starting out. Choose a channel, pick a customer base and start getting feedback. You’ll eventually find that different customer segments or journey points benefit from different channels, and your NPS program will evolve accordingly.

Expect your Net Promoter Score program to mature over time and select a vendor able to support the increasing sophistication you’ll likely need.

3. When will you survey your customers?

When it comes to deploying your NPS surveys, there are two primary approaches:

Relationship Monitoring

This approach sends NPS surveys at regular intervals overtime to assess your customer’s overall loyalty to your brand — rather than just their satisfaction with their last interaction.

Checking in at Journey Points

In this case, often called “transactional NPS”, surveys are sent after a customer has an interaction or completes a transaction with your company. This approach works well when you’ve mapped out your customer journey and can find logical points at which to check in with your customers via a survey.

NPS software platforms that can integrate with Mixpanel, Intercom, Salesforce, Zendesk and other systems of record work especially well for this type of timing.

Once you know the approach you need, dig in and see if vendors can deploy surveys the way you prefer. Each vendor has different capabilities. For example, if you are sending email surveys, do you want to do so from your own platform like Marketo or MailChimp? Or do you prefer to upload a list of customers and have the vendor’s software send the surveys?

More to Consider

These three questions will get you started on your decision process. For a deeper look into the questions to answer that will narrow down your list to your perfect NPS software, download our free e-book, We’ve also included a link to a handy vendor evaluation spreadsheet to keep track of everything in this process. Once you’ve established your company’s needs and had the conversations to narrow down your list, request a product demo from two or three vendors who make the cut. You can tell a lot about a company through their demo, including how customer-centric they really are and how they will treat you in the future.

Congratulations! Another customer is starting their journey with your company.

They’ll go through the various stages in the sales funnel, across departments from marketing to sales to product to customer success and customer service. All of these departments will be using your company’s system of record, perhaps Salesforce, as the one common source of truth. They’ll document each interaction with this customer, each touch point, and then pass the customer along to continue the journey.

The Three Touchpoints and Their Matching CX Surveys

Among the touchpoints in your customer’s journey, there are three vital ones that warrant focus: Onboarding completion, support interactions, and renewal. 

Gathering CX feedback at the right time gives you a pulse on customer happiness along the journey. You can act on this insight and boost your ability to retain customers.

Benefits of Collecting Customer Experience Feedback in Salesforce

Your CRM is the best system to trigger journey point surveys because it knows where your customer is at. When feedback resides in CRM records, it is easy for Sales, Support and Customer Success to follow up and take action. It can also be a morale boost when customers sing praises after an interaction.

Most importantly, having feedback recorded in your CRM after these three touch points creates a holistic, birds-eye, trifecta view of the customer experience that is measurable and tracked over time. This is vital business intelligence that will better prepare Success for QBRs and prepare Sales for renewal conversations. 

An Account Level Report Provides the Trifecta View

Use an account level report to get a holistic view of your customers’ journey, with each survey score reflecting different parts of the entire journey. Account level NPS, for example, is valuable intel for the Sales team. See how better training for Support can boost CSAT scores, or watch your churn numbers go down as Success team members reach out to customers with poor NPS before the renewal is up. Wootric offers account level survey data in Salesforce, by month and quarter.

The Trifecta View can reveal your strengths and weaknesses, as they exist, across the entire customer journey. Drilling into each journey point’s feedback can guide decisions to improve the weak spots, smoothing out the entire customer experience from a roller coaster to a gentle upward journey into Customer Nirvana.

Here, we’ll show you how the Wootric-Salesforce two-way integration can help you trigger a feedback survey using workflows. Responses loop back into your contact and account records to create this view of your customer experience.

#1 Onboarding Completion: Customer Effort Score Survey (CES)

Post-onboarding is a prime time to get customer feedback on that process. This is the critical first phase of the SaaS relationship. The customer’s emotions and first impressions of your company are fresh in their minds.

You can get valuable insight into how easy the process of onboarding is by triggering a Customer Effort Score survey (CES). You may learn about how helpful documentation and Customer Success team members were in teaching your users how to use your product, or you may expose aspects of your product with a high learning curve.

Overall, you will learn what makes the process of learning your product as easy as possible, getting your relationship with the customer started on the right foot.

To automatically gather feedback on the onboarding process, Wootric’s Salesforce integration enables companies to set up a workflow to trigger a CES survey 90 days (or any time period) after an Opportunity is closed.

#2 Support Interaction: Customer Satisfaction Survey (CSAT)

Now that you’ve made your first impressions, and your customers have gotten to know your company and product a bit better, there are bound to be times when they will need your Support team. After the case has been addressed, triggering a Customer Satisfaction (CSAT) survey will get you important feedback about their interactions with Support.

Having CSAT feedback can inform the training and organization of your Support teams and help you better understand your customer’s expectations of interactions with the Support team. It can help you identify any gaps in your support coverage. CSAT feedback at this journey point may even reveal potential new services and offerings when there are multiple similar feature or service requests. It may also reveal bugs that were undetected.

When CSAT scores are recorded in Salesforce, it pairs with other meaningful factors, like account age or company size, to create more context for you as you analyze this journey point. 

Wootric’s Salesforce integration enables companies to automatically gather feedback on Support interactions by setting up a workflow to trigger a CSAT survey after a Case is closed.

Bonus: You might choose to trigger a new case to open for Support or Success when a poor CSAT score comes in, or assign a task of follow up to specific individuals. This will show your customers that you are actively listening to their feedback and value it, making it more likely for them to continue giving it to you. It can also clear up any potential miscommunication that may have occurred during the original interaction.

#3 Renewal Conversation: Net Promoter Score Survey (NPS)

As the year passes and your customer has more experience working with your company and product, inevitably, the time for the renewal conversation comes. You’ve got an idea of how things are going, based on the CSAT scores coming in, but that mostly tells you how satisfied they are with the Support team, rather than your company overall. Arm yourself with more relevant feedback before you talk renewal by triggering an NPS survey 90 days in advance of the renewal date.

Leverage workflow rules by having poor NPS scores trigger a task assigned for a CSM to reach out and talk to detractors to try to prevent them from churning. The feedback from your customers can be brought up during the renewal conversation to show them you take their feedback to heart. Bringing up the comments they’ve left you my open up opportunities to show product or service improvement, provide additional training and for upselling or cross-selling. It may also prevent customers who churn from being resentful of your company. If you’ve listened to them and tried to work with them, most customers will appreciate that effort, even if they choose not to renew.

By creating a Salesforce workflow based on the Opportunity or Account object, Wootric customers can trigger an NPS survey in advance of account renewal date.

Get Creative

Wootric integrates with Salesforce to enable you to ask the right questions to get the information you need, at just the right time. Our surveys can be triggered on any object in Salesforce, including Activities. That’s a lot of options.

Your company may have other customer journey points that warrant feedback. You may want to ask a slightly different question than the examples we’ve chosen, depending on your circumstances. You can tailor your Salesforce workflow rules to integrate with Wootric surveys in the way that best serves your needs.

More than two-thirds of the Fortune 1000 list currently use Net Promoter Score, a customer loyalty metric introduced by Fred Reichheld in a 2003 Harvard Business Review article, “The One Number You Need to Grow.” One number. And to get to that one number, you only have to ask one question: “On a scale of 0 to 10, how likely are you to recommend this [product/brand/company/service]?” Anyone who scores 0-6 is considered a Detractor. Passives rate 7 and 8. Promoters are those who score 9s and 10s – extremely likely to recommend.

The Net Promoter Score is calculated by subtracting Detractors from Promoters. Scores can range anywhere from -100 to 100. It couldn’t be simpler, or more powerful. Since 2003, the popularity of that one number has grown exponentially, spawning specialty apps to track it and spurring researchers to study it. The most recent study by Temkin Group of 10,000 U.S. consumers showed a direct connection between NPS and customer loyalty across 20 industries. In 291 companies, NPS was highly correlated to the likelihood of repeat purchases from existing customers. In fact, promoters across those 20 industries were 92% more likely to make more purchases than detractors (not surprising), were 9 times more likely to try new offerings, and 5 times more likely to repurchase. Promoters were also 7 times more likely than Detractors to forgive companies if they made a mistake. Loyalty is lucrative. The ability to measure and improve it is imperative. And that’s where NPS comes into play.

Calculating Loyalty Used to be Hard

The CEOs in the room knew all about the power of loyalty. They had already transformed their companies into industry leaders, largely by building intensely loyal relationships with customers and employees. – “The One Number You Need to Grow,” Frederick F. Reichheld Reichheld’s NPS origin story begins in a boardroom with chief executives from brands like Chick-fil-A and Vanguard. They’d gathered to discuss what they were doing to increase customer loyalty, and when the CEO of Enterprise Rent-a-Car spoke, everyone listened. He’d found a way to quantify loyalty that didn’t use traditional, complex and faulty customer surveys. His solution was a poll with just two questions:

• How would you rate the quality of your rental experience?
• How likely are you to rent from us again?

The simplicity of this approach allowed for faster results – nearly real-time feedback – that could then be relayed to the company’s far-flung branches. But Enterprise did something else as well: They only counted the customers who gave their experience the highest possible rating. Why ignore the less happy customers? Because concentrating on the happiest customers let the company focus on a main driver of growth – the customers who returned to rent again and recommended Enterprise to their friends. Today’s NPS hasn’t ventured far from Enterprise’s system, and it is still has two-parts:

• “On a scale of 0 to 10, how likely are you to recommend this [product/brand/company/service]?”
• “Why did you give us that score?”

How SaaS companies use Net Promoter Score in practice

NPS has risen in popular estimation from ‘a nice number to know’ to the most important number you can track for growth for a reason. But to understand that reason, you have to see how real companies are using this information. Receipt Bank is an award-winning bookkeeping platform that saves accountants, bookkeepers, and small businesses valuable time and money, and all of their business is subscription-based. While every business can benefit from NPS, growth of subscription-based businesses are inherently tied to customer loyalty – customers have to choose, over and over again, to come back. Receipt Bank had a challenge though. They recognized the value of measuring user NPS, and so were sending monthly emails to survey sample groups across their user base. However, this method was time-consuming to set up, and resulted in their NPS score only being updated on a monthly basis. With new initiatives being constantly released across Receipt Bank to improve the customer experience, monthly sampling just didn’t provide the quality of insight needed. In addition to the delay, users were reluctant to respond when presented with another email task to complete. Conversion rates were low. With the happiness of users on the line, Receipt Bank needed a fast, efficient way to gauge how well their product performed. To overcome these challenges, ReceiptBank tested triggering their NPS surveys in-app — while users were logged in and using their product. Their hunch was right, and their survey response rate jumped ten fold in the first 48 hours.

Quick path to high response rates & real-time NPS

Segment offered an ideal implementation solution: It is a central data and analytics platform that allows Receipt Bank to turn on tools for their teams as needed. Every team has its own data needs and its own list of preferred tools. In addition to tools that let ReceiptBank report on marketing campaigns, message their customers, A/B test, and find fresh user insights, they used Segment to integrate Wootric, a customer feedback management platform that delivers the NPS questionnaire in-app, to measure user experience. “Because of Segment, Wootric was simple to install and within a few hours, we had live NPS data like we’ve never had before,” says Steve Lucas, ‎Customer Experience Manager at Receipt Bank.

Delivering the NPS question in-app, while customers are using the product, continues to result in higher response rates. Not only that, but in-app surveying allows for a more representative sample of their active users, providing more powerful insights into their customers’ happiness. “We’ve seen a much higher response (10x) using in-app messaging to obtain our NPS data. Having a real-time NPS pulse has really helped us support our users better and resolve root causes to improve the CX for our whole customer base,” says Steve.

Improved Net Promoter Score = higher loyalty

“The combination of closing the feedback loop effectively and identifying common experience shortcomings has allowed us to improve our NPS score by at least 40% in just 6 months,” Steve reports. Once a company establishes its baseline score, it can then pursue A/B testing and other means to continually improve it. Receipt Bank, like most companies, combines the basic NPS question with a qualitative, or open-ended, follow-up question that asks users to explain their answer. Armed with these insights, companies can test improvement ideas to see what works best for their best customers. NPS is also a valuable addition to Customer Success programs. Wootric reports that Customer Success teams use their constant stream of customer health data to save accounts at the first signs of trouble, identify promoters ready for upsells, and celebrate clients’ successes – reinforcing their positive perceptions of the product. NPS works on multiple levels to alert you to trends in your user base, and reinforce your users’ positive perspectives of your company. It’s no wonder that promoters are more likely to become repeat buyers, upgrade their accounts, try new offerings, and recommend your company.

Taking action by Net Promoter Score segment

Now that you know who is a Promoter, Passive or Detractor, what can you do about it? Promoters offer the most immediate wins. Clearly, they’re already finding success with your product, so the question becomes: Could they be even more successful with an upgrade, expansion, or additional feature? But don’t just focus on selling, even though Promoters may be ready to buy. Show your appreciation. Make them love you even more. These are your best customers! And, most importantly, empower them to become vocal advocates of your brand. Don’t be afraid to immediately ask them to leave reviews for you, Tweet about you, or participate in your latest Instagram hashtagathon. Encourage them to join an “inside circle” of community members in a private Facebook group or section of your site. Making your best customers feel appreciated is the best thing you can do to attract more of them. Passives are tough cases. They’re just not that impressed, and your job is to figure out why. Hint: They’re not achieving the success they’d hoped for with your product, in all likelihood. Why is that? It’s worth your time to find out. Detractors do not like your company and/or your product. And for some of them, it can’t be helped – but don’t worry. They’re probably not your ideal customers. Some of them shouldn’t even be using your product in the first place, like a guy who wants to heat a frozen pizza quickly so he buys a toaster (instead of a toaster oven). But others have legitimate grievances, and they are worth winning back. First, determine whether or not they are your ideal customers (did they want the toaster oven?). If they’re not, point them in the direction of a product – even a competitor’s product – that will get them the results they want. They’ll be so impressed. Non-ideal clients waste time and resources, are never happy, are always willing to jump ship for cheaper competitors anyway, and are more likely to be detractors than promoters. By sifting them out, you can put your focus on target clients who will love you, promote you, and not drive your customer service department crazy in the process. Everybody wins! However, if detractors are your ideal customers, find out why they aren’t willing to recommend you. Did they have a bad experience? Are they not achieving their desired outcomes? All segments, however, benefit from receiving responses to the feedback they so generously give you. So remember to acknowledge their effort with something as simple as a quick, personal thank you.

NPS is a journey, not a destination

NPS is an ongoing effort that never really ends, and never should. Keeping your finger on the pulse of how your customers feel about you will become central to how you conduct your business – if you let it.

As the co-pilots of Wootric’s product team, we’re excited to share all the progress we have made in the past twelve months, and also give you all a peek into what’s on the immediate horizon for Wootric.

Expanding our offering while boosting customer happiness

At Wootric we prioritize people, product, and process–in that specific order. At the end of day it’s people who build products and support our customers; process is there for people to be productive, not to get in their way. We are very pleased to see that in this competitive job market we have not only retained all our team members but have also grown the team to deepen our machine learning and big data prowess.

As you can imagine, we work hard to “walk the talk” of boosting customer happiness.  I’m happy to report that Wootric’s Net Promoter Score has improved 7 points year over year. We are especially proud of this trend as we have grown (rapidly) and the capabilities of our platform have developed exponentially. As we drive innovation in customer feedback management, our own customers — like Docusign, Mixpanel and Hootsuite — are seeing the value of our platform and the way we prioritize their success.

Ensuring our customers have the insights they need to improve customer experience

Now let’s talk about product. One sentence that would describe our evolution this past year? We have evolved from an Net Promoter Score survey tool to a platform that effortlessly turns all of your customer conversations into insights. In a world where customer experience is the new battlefield for competitive advantage, this empowers you, as a business, to shift from product-led growth to the holy grail of customer-led growth.

Here are new features to back up this evolution claim:

• New survey types: Customer Satisfaction Survey (CSAT) and Customer Effort Score (CES) Survey, in addition to NPS
• New survey channels: Email and SMS, in addition to in-app web and mobile
• New Integrations: Salesforce, Mixpanel, Intercom, Slack, Zendesk, Webhooks
• Email Templates: Mailchimp, Intercom, Marketo, Hubspot, Salesforce Pardot, PersistIQ, Zoho, Amity
• Survey respondent profiles
• API your way to almost everything
• Big Data warehousing through partnerships with Stitch Data and XPlenty
• Accessibility improvement.  Wootric surveys, now compliant with Section 508 standards, can be filled out by the visually impaired — highly valued in education and government services.

Among these features, if we were to pick the two that most impact our customers’ growth, they would be (a) launching our Salesforce Managed Package on the AppExchange and (b) the integration with Intercom. Both Salesforce and Intercom are two-way integrations in which Wootric enriches your CRM and Customer Support software with customer feedback and at the same time allows you to trigger surveys to customers based on events in Salesforce and Intercom. This has a huge impact on renewal and upsells because your sales and success teams have more context into what your customers think of your product and services.

It’s been a fun challenge to keep a balance between new feature development and upgrading our infrastructure to handle our growth.  Our already ‘big data’ platform has exploded this year, with 300% growth in survey responses, and over 800% growth in REST API calls.  (To reiterate: API all the things!)  Our tech stack now includes Elastic Search, PostgreSQL, Redis, and several Amazon (AWS) and Google Cloud (GCP) services.  Our infrastructure and devops are ready to handle the growth we foresee in next 12 months.

But that’s all in the past!

Our current focus is to add more intelligence to our service.

We are working on being smarter about who to survey and when to survey so that you can converse with more of your customers. And, once we have your customers’ feedback, we will provide better and more automated insights through the use of artificial intelligence.

AI-powered insights trained by millions of survey responses

Because the survey data we receive is unstructured text, it’s a great use case for the meeting ground between machine learning and Natural Language Processing (NLP). Besides leveraging the Google Cloud Platform, we are creating our own industry-specific machine learning algorithms that analyze open-ended human-generated feedback.  CX Insight™, our text and sentiment analysis product–trained by millions of survey responses–focuses first on SaaS, e-commerce, and media use cases. As with all things Wootric, this has been a customer-led effort. Our customers expect that AI-powered insights will provide them with a game-changing ability to improve customer experience.

Wootric is at the forefront of a revolution in customer experience intelligence and we look forward to sharing this journey with you.  Thank you.

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If you are like most B2B SaaS company leaders, you send your buyers an Net Promoter Score survey out to gauge loyalty and solicit feedback. If you are focused on retention, you need to know the answer to the NPS question: How likely are you to recommend my product or service?   However, you may be hesitant to ask the same question of the hundreds of end users of your product. 

The fact is end users are your customers, too.  After purchase it is your end users that must become the champions of your product. If they are unhappy they will tell your decision makers or, worse, let their feelings be known on social media.

Knowing what end users think of your product is invaluable, essential intelligence for your QBR. 

Whether you are in Sales or Customer Success, here is how end-user feedback plays into your Quarterly Business Review with your key stakeholder. He or she may not know how happy or unhappy their people are with your product. But you do!  

Scenario 1: End users are happy.  Imagine being able to tell a VP of Product or CMO that end-users gave your product a 52 NPS, and rattling off some of the great verbatim feedback you’ve received from promoters.  You’ve harnessed that brand advocacy. Now picture a competitor cold-calling your client. Is that VP even going to take the call and “explore other options”? No way. Not a good use of her time. 

Scenario 2: End users aren’t so happy.  That’s still good intel. You can be proactive. Let the decision maker hear it from you (they may already have heard from their people anyway): “Your team is achieving  [a success goal], but they have definitely experienced frustration with this new feature of ours. We know it didn’t meet expectations, but I want to assure you that the fix is on our roadmap for Q2 and you will be the first to be upgraded…”  

Either way, you are a proactive, knowledgeable and trustworthy partner to your stakeholders.

End-user NPS feedback will shape your product roadmap

Hearing directly, day in and day out, from end users provides a pulse of sentiment and qualitative feedback that Product teams need.  There is nothing like hearing about a new feature directly from a user.  And, users will identify a bug before the company can — you have an quality control army to support you. Some SaaS companies, like Magoosh, use in-app Net Promoter Score survey feedback to A/B test product versions for customer happiness. The product team at Hootsuite adds a feature to each quarterly roadmap that is derived from end user NPS feedback.

The Best Way to Survey End Users

Lengthy email surveys are not appropriate for end users. You need to know if users like your product, if they’d recommend your product, if it actually helps them in the way they need. You don’t need a lengthy survey to get actionable feedback from them. Plus, even if you do have their email contact information, that isn’t a channel they expect to hear from you in. If you send users a survey via email, they might not recognize who it is coming from.

Use in-app NPS surveys to get the information you need from users of your SaaS product. Surveys inside your SaaS application will give you the contextual feedback you need in real-time.  And the best part is that a well-designed in-app survey is unobtrusive.  It won’t interrupt the work that users are doing in your product. When a user opts to respond, it will only take them seconds to do so.

Resistance to asking end users for feedback 

Leading edge, customer-centric SaaS companies like New Relic, DocuSign and Consumer Reports have made the leap to asking end users for Net Promoter Score (NPS) feedback. You may be struggling with the same concerns they had to overcome.  Let’s run them down:

2. I don’t have a relationship with end users.

B2B SaaS companies often do not interact with the end-users of their product. Historically, even getting to the end user was nearly impossible. You may have communicated with one or several stakeholder decision makers that have signed off on the subscription purchase, but not had a single email address for the people actually using the product every day.

This is where in-app surveys truly shine. Users have an existing relationship with you through your product, and are more likely to give feedback when asked within the product experience.

2. The volume of responses is scary.

The idea of going from 2 or 3 survey responses per account to hundreds can sound overwhelming. With modern Voice of the Customer software platforms though, feedback is aggregated and analyzed for you–often using machine learning.

Sending surveys is automated as well.  You don’t have to create survey “campaigns.” You can drip Net Promoter Score surveys and get constantly updated, real-time feedback. That way you’ll never miss a trend. Alternatively, you can trigger Customer Satisfaction or Customer Effort Score surveys at key points in the customer journey.

3. I don’t know how to respond to end-user feedback.

Depending on the feedback, you can respond in a couple of very productive ways:

• You can send set up an auto-message to thank users for responding to the survey. This can be customized based on whether the user was happy or had a complaint.
• Promoters, or highly satisfied customers, can be referred to Customer Success or Marketing for testimonials or case studies.  Route unhappy end user responses to Customer Support for follow up.
• If responding to each user isn’t feasible, one simple way to close the loop is to create a blog article that talks about the feedback you’ve received and what you plan to do about it.

4. Am I going to mess up my corporate KPI by surveying end users?

Segmentation can help here. Parse your metrics by buyer, admin and user, for example, to maintain continuity with previous buyer-only NPS data. If you believe that end-user feedback has value — there is a way!

5. Yikes. Am I REALLY ready to hear feedback about my product? 

This may be the single greatest fear we encounter! It takes a brave business to ask for real, unvarnished feedback from end users. And it takes a smart business to know how to use that feedback to build better products and improve user experiences. It’s not for the faint of heart. But it is essential for businesses hoping to grow, gain referrals, and lead their industries. A modern Net Promoter Score software platform can help make this organized and manageable.

Modern CXM software will help you get it right.

End user feedback will tell you your strengths and weaknesses, which are both valuable information. Understanding what end users love can strengthen your relationships with the decision makers. Knowing where end users get into trouble puts you ahead of negative feedback at reviews, ensuring you’re prepared with a game plan to remedy the issue and keep the account.

What we call Customer Experience (CX) is the total effect of each interaction between brand and customer over the course of the entire relationship (and it’s really all about how they feel). Positive feelings = effective CX, whether the interaction happens in a SaaS product, on a social media page, a website, over the phone, in person, or driving on the freeway.

This isn’t the same as User Experience – not at all.

Whereas UX is commonly concerned with evaluation of your product or website – a very limited scope – CX encompasses the entire experience of each customer from end-to-end, including touch points on your website, off your website, offline, on mobile, and person-to-person contact. You need both.

Fortunately, UX can be relatively easy to optimize.

Optimizing CX, on the other hand, can seem like an impossibly large task.

But keep in mind: CX is the sum total of specific, concrete, controllable occurrences. You know exactly when and how your customers interact with your brand, right? (No? You should – if it happens online, it’s all trackable). Your task then becomes understanding which CX metrics to track and how to use those metrics to create unbeatable – unforgettable – customer experiences for all.

Why is CXM so important?

Customer Experience Management (CXM or CEM) is a burgeoning field because CX heavily influences the likelihood of three very important actions:

• Repeat purchases
• Referrals
• Complaints

Repeat purchases and referrals are growth engines, decreasing the cost of acquiring new customers, decreasing churn, and increasing lifetime value.

Complaints – especially public ones on review sites – are damaging, influencing untold numbers of prospects to look elsewhere for solutions.

CX can also act as a powerful differentiator in a sea of similar products and services. It’s a key to not only increasing revenue, but also gaining lasting competitive advantage. Studies have shown that 86% of customers are willing to pay more for better CX.

And, in a study published in the Harvard Business Review, researchers found that “Customers who had the best past experiences spend 140% more compared to those who had the poorest past experience.”

It should be a ‘no-brainer,’ but you know how the saying goes: What gets measured gets managed.

First, a summary of the CX measurements we will cover.

The Most Important CX Metrics to Track

• • 1. Net Promoter Score

    2. Customer Satisfaction

    3. Customer Effort Score

    4. First Response Time

    5. Problem Resolution Time

    6. Contact Volume by Channel

    7. Social Listening Stats

    8. Referral & Review Rates

Now, let’s dig into each one.

8 CX Metrics: Definitions (and What to Do with Them)

• • 1. Net Promoter Score (NPS)

       Net Promoter Score is a simple survey that asks users to rate, on a scale from 1-10, how likely they are to refer the product/service to a friend or colleague. Those who score 9 and 10 are your promoters – they are delighted with your work and are more likely to buy more and bring their friends. People who score below a 6 are detractors. They are not having a good experience, not at all, and are very likely to tell other people about it!

       NPS is a classic “brand metric” but product teams, like those at IBM, are using NPS to improve customer experience.

       

    • How to use NPS for CX: We’ve written a whole book on this topic, but here is a new, innovative approach: Use an NPS threshold as a go/no-go milestone before launching a new product or feature out of beta.IBM is developing a new Slack-like communication product for their customers’ teams. Using IBM’s Watson machine learning and NLP (Natural Language Processing) capabilities, this SaaS product can summarize channel conversations for those who don’t have time to wade through all the team chatter. The AI also aims to summon and post in-channel all relevant information about sales opportunities that are discussed by the team. When asked when the product will be on the market, Inhi Cho Suh, General Manager, Collaboration Solutions at IBM, proudly says, “There is no launch date.” She is measuring Net Promoter Score in this new SaaS application to capture real-time feedback, and says the product will only be released when it earns a satisfactory NPS from beta users. 

• • 2. Customer Satisfaction (CSAT)

       A CSAT survey asks a customer how satisfied they are with a recent interaction – often a purchase or customer service call – on a rating scale.

       

    • How to use CSAT for CX: This is an incredibly valuable metric to track when you’re trying to optimize for CX, because this metric will show you which specific interactions are most in need of improvement. It is most often used after an interaction with Customer Support. Use it as a compass to point you in the direction of where your attentions are most needed. Depending on your survey program, you can deliver these surveys in-app, and choose various survey formats – even an emoticon scale. Using CSAT at journey points is a new way of leveraging this time-honored metric.  For more information on CSAT, check out our previous post.

    3. Customer Effort Score (CES)

       A CES survey asks the customer “How much effort did you have to expend to handle your request?” and is, perhaps, the most telling metric of how positive your customer’s experience has been. The harder it was for them to get an answer, the worse their experience, and the lower your CX. Some say “effortlessness” is the most relevant attribute of customer satisfaction. “If I had to choose only one KPI, I would use Customer Effort Score (CES). While the relative importance of effort as a driver of satisfaction differs depending on your company’s business model — e.g., selling shoes online vs. providing legal advice — it is a measure of one thing that all customers have in common: using your products and services should be as easy as possible. Nobody wants to expend more effort if given the choice.” – Mark Mollet, Customer Experience Manager at Helpling (source).

    • How to use CES for CX: Typically, you’ll deploy a CES survey after a customer support interaction. But, more and more SaaS companies are using these to gauge the effort required during the onboarding process (the point at which users are most likely to churn). The results of the survey will tell you how easy your onboarding process is, and you should see your numbers improve as you work to simplify the process.

    4. First Response Time

       This is the amount of time it takes a company to respond to a customer query. Customers expect very fast response times, and when brands don’t meet their high expectations, they become frustrated and CX drops. How fast is fast? Studies show that 53% of customers find 3 minutes to be a reasonable response time while waiting for a support agent – by telephone. Email is a bit longer at 24 to 48 hours, but the best companies, like Buffer, work on replying within one hour. And then there’s Live Chat – which requires a nearly instant response.

    • How to use First Response Time for CX: The faster the responses, the happier the customers – that’s a correlation that nearly always holds true. But, of course, if it were easy, everyone would do it! So how can we make faster response times easier? One way is by creating a Slack community for customers. ProdPad’s Director of Customer Success observed that email and Twitter weren’t creating the levels of customer engagement they were hoping for (which they knew because they were tracking those metrics). So they created a Slack community specifically for their customers to get instant, direct help, both from the brand and from other customers. Customers don’t even have to participate to get value – they can learn from everyone else. The results speak for themselves: 99% of their churn is from customers who are not part of the Slack community.

    5. Problem Resolution Time

       How fast can you solve a customer’s problem? Or, let’s put it another way: How many people does the customer speak with before the issue is solved? As a customer, there are few experiences more frustrating than speaking to someone who is incapable of solving your problem, then being bounced around to several other people who also are not equipped (not knowledgeable, not permitted, not empowered enough) to offer a solution. This is what Problem Resolution Time measures. You can get the answer with a simple survey, sent after a customer support interaction is completed, asking how long it took to solve the problem.

    • How to use Problem Resolution Time for CX: This metric serves to alert you to problems that affect the efficacy of your customer support program. You’ll probably need to do additional digging to get to the root of the problem (insufficient training? Are agents not empowered to handle issues without managerial oversight? Is it difficult to transfer customers to the appropriate person quickly?). You may not be able to find a quick fix, but once you solve these issues, your CX will improve drastically.

    6. Contact Volume by Channel

       Paying attention to volumes of calls and the number of inquiries you receive may not seem like the key to increasing customer happiness, but Buffer says it is. (Note: A high volume of service tickets isn’t necessarily a bad sign – it means customers want to be successful with your product. It’s the quiet customers you should worry about!)

    • How to use Contact Volume by Channel for CX: Buffer checks for spikes that indicate rushes in support traffic at certain times of day, which they then use to allocate service employees and resources so they are ready to meet demand. Of course, they always have a “buffer” to handle sudden support demands also. Not only does Buffer look for patterns in volume – they also track which channels their customers use most (emails, chat), and which questions are most frequently asked. That way, they know how cost effective it is to create a self-serve knowledge base, or find other methods to quickly and efficiently answer questions.

    7. Social Listening Stats

       Listening to the conversations happening about you via mention.com, or some other tool, and jumping into the conversation can create a community-like, welcoming customer experience that reaches very early in the sales funnel, all the way down to the Customer Success stage. Buffer is really good at this.
       

    • How to use Social Listening for CX: By monitoring your mentions in real-time, and allotting the human-power to respond in real-time, you’re creating an additional touchpoint with your brand – and another opportunity for positive, interactive, engaging experiences. The best part is: You’re doing it in public. Some potential metrics to use to help with social listening include how many people are talking about you, how many comments hashtag your brand, support reach-outs, Twitter chat participation, and of course, mentions.

    8. Referral & Review Rates

       Perhaps the most accurate measure of customer experience is the oldest: word-of-mouth recommendations (aka. referrals and reviews). NPS measures the willingness to refer, but only tracking actual referrals and reviews will give you the genuine numbers.

    • How to use Referral & Review Rates for CX: Tracking referrals and reviews requires a combination of social listening and a trackable customer advocacy program (which works hand-in-hand with tracking NPS to identify promoters early and encourage them to act). Referrals and reviews not only measure how successful your customer experience efforts are, they can also encourage a sense of personalization and interactivity – but only if you respond and reward these highly valuable behaviors!

Customer Experience is truly the key to retention and growth at its most fundamental levels. When customers love your products, enjoy working with you, feel good about asking questions (and getting prompt answers), and come out of each interaction feeling good about you and themselves, growth and profit are natural byproducts.

However, as natural as this is, when you need to create these positive experiences at scale, you have to track your successes and failures, understand which metrics have the most impact, and come up with creative ways to make your target customers smile at each touchpoint. It’s a tall order, true. But doable.

Net Promoter Score is the go-to CX metric for companies that want to measure and improve customer loyalty, a harbinger of growth. Thousands of companies use NPS, from the start-ups of  Silicon Valley to the Fortune 500.  One reason for this popularity is that Net Promoter Score programs have evolved in response to technology and the changing landscape of customer expectations. 

The core tenets of Net Promoter Score have stayed the same since NPS was created in 2003 by Bain & Company. “How likely are you to recommend this product or service to colleagues?” is the NPS survey question, and it is followed by an ask for open-ended feedback. Customers respond on a scale of 0-10 and are bucketed into promoters, passives and detractors based on their response. The formula for calculating the NPS metric is straightforward.

However, the world of customer experience management, or CXM, has changed dramatically. A few macro things have happened.

1. Social media has empowered our customers with a voice — the conversation is no longer expected to be only one way, and negative word of mouth can be amplified quickly. Every voice counts.

2. We as businesses have to work harder than ever to retain customers — customer experience is increasingly a differentiator and a battleground with more competition and low switching costs.

3. Companies have many more touchpoints to engage with customers than it did back in 2003.We now have sophisticated mobile devices, web platforms, customer facing point of sale systems. Meanwhile, our customer’s email boxes are overstressed with newsletters and promotions all vying for their attention.

When I ran NPS campaigns back in 2003, I was sending long form surveys to my customers in quarterly batches. Emails with links to long form surveys were considered the ‘innovative’ way to get feedback. Response rates were dismal. Sadly, I still receive some of those today!

This, of course, still is a valid way to collect NPS feedback — you will get some of your customers to go through the effort — but it doesn’t take advantage of any of the macro trends I mentioned above. And honestly, customers are getting smarter and less patient with spammy surveys.

How Net Promoter Score has evolved

Modern NPS leverages technology, closes the loop with customers and engages the whole company.  Here is what you should expect:

• Timely, ongoing feedback. You can keep a real-time pulse on your business. This alone is magical. Reading, sharing and responding to customer feedback as it happens — talk about raising the profile of the customer’s voice inside a company!
• Modern NPS survey is short and to the point — just the NPS rating and open-ended feedback. A 10 or even 5 question survey? No way.  Survey fatigue is a real issue. Keep it short and you will get many more customers to tell you what’s most important to them.
  
• Reaching customers where they want to give feedback, in a low-friction and lightweight way. For example, in-app surveys that take seconds to complete may a better experience for SaaS customers than dealing with another email survey in a crowded in-box. E-commerce companies may use a combination of in-app, email, or SMS to reach their customers depending on where they are in their journey.

• High response rates — your expectations should jump up from single digits to 30-40%. Customers are willing to give you feedback cycle after cycle because it’s easy. 

• Leverages intelligent NPS software. Software that is designed to get your business to action faster. It’s giving you analytics. It’s helping you comb through open-ended text and sentiment. And it’s making the process of closing the loop with customers easy and turnkey.

• Customer feedback is shared internally. It doesn’t get buried in spreadsheets and left unaddressed. It is shared in Slack, it is routed automatically to departments to take action in their systems of record such as Intercom, ZenDesk or Salesforce.

Net Promoter Score has come a long way, and the end result is better outcomes for companies and their customers.

Customer success teams measure and track many key metrics. From SaaS platform usage to NPS, they are always analyzing data to maintain a pulse of customer health and happiness. Many of these stats will also go into an overall account metric known as Customer Health Score.

Wootric recently hosted the San Francisco Customer Success Meetup and the focus of the evening was Customer Health Score (CHS). Three experts shared their techniques for constructing and measuring this metric.  Loni Brown from Entelo, Jeff Johnson from Splunk, and Jon Turri from Raise.me offered several tips and insights to setting up a Customer Health Score program and the intricacies involved.

What is Customer Health Score (CHS)?

Customer Health Score is a metric designed to predict a customer’s likelihood to stay a customer  – or churn. Loni started by providing her explanation of what CHS is, “a metric that provides insight into what is happening in your customer accounts early enough that you can be proactive.” Formulations of CHS can be simple, but are often complex.

That description works well, but there isn’t an industry standard for Customer Health Score, which may be confusing and overwhelming for some customer success teams. The panel agreed that variables and the weighting formula for CHS vary based on the company and industry. It depends on what is indicative of success for your customers.

What Goes Into a Customer Health Score?

Each of the panelists has had to identify and gather the metrics available to them, then single out the most indicative numbers to create a formula for their score. This means the first iterations are often messy and need regular adjustment until the method produces results that are consistent with how CSMs see their accounts.

When creating your score, it’s good to isolate 4-6 indicators for CHS. Loni mentioned that the Entelo CHS score card includes eight different numbers, though she allowed that her formula is very comprehensive. Among other things, the Entelo CHS includes Net Promoter Score (NPS), the number of support tickets per user, usage of the tools on her platform, and success milestones. Entelo is a recruiting platform so in their case, success milestones include personnel hires their clients have been with the help of Entelo.

Jeff added, “Support cases are important, but they don’t always mean something is wrong” so you’ll want to keep that in mind if you add them to your formula.

The panelists discussed the subjective components of their CSH formula, suggesting that only 1-2 of your included metrics should be subjective, but that they can be quite important. For instance, Jon adds “Relationship strength is the highest weighted metric for us.”

After initially setting up your Customer Health Score formula, it’s important to give it 6-10 months without changes, or you won’t be able to track it accurately over time.

Tracking Customer Health Scores

A favorite tool for tracking CHS is Gainsight, used by 2 of the panelists. It imports metrics you’ve indicated as important and allows you to weight each parameter, culminating in a unique formula for your each customer’s CHS.

In Gainsight, you’ll see accounts that are Green, indicating good health. They could be an opportunity for an upsell or additional revenue. Yellow, which are accounts that might be experiencing a problem. Red accounts are in poor health and are at risk of churning.

Loni uses Wootric to track Net Promoter Score. She imports this NPS data into Gainsight via Salesforce for the benefit of her success team and her CHS calculation. (Having her NPS data in Salesforce benefits the sales team, too. For instance, if a client could be a potential advocate, exporting that to account and contact records in Salesforce makes it easily accessible to the client’s sales manager.)

A good indicator that your formula is working is to check positive and negative accounts and be sure the metric matches what is happening with the client. For instance, if a customer hasn’t taken training, submits multiple support tickets, and hasn’t been successful with your product it makes sense they would be in poor standing.

Optimizing your CHS can be great for revenue opportunities. Loni stated “Sales can come to me and say ‘we are trying to make quota, do you have any accounts for us?’ and I can print out of a list of green accounts and hand them over knowing they are good prospects for upsells.”

When our host was asked by an audience member what impact panelists had seen on churn and expansion revenue, Jeff answered, “You’ll see an immediate impact when taking immediate action.”

Set Up Customer Health Alerts

Once you’ve chosen the metrics for your score, you’ll want to add alerts to your system that notify you if and when something happens. Jeff says “If anything should be a fire alarm, build it into your logic in Gainsight. Think about what those fire alarms are.”

Jon cautioned, “The CHS Scorecard won’t give you everything….you have to have an escalation process in place.”

For example, if your NPS for a particular account goes from promoter to detractor you’ll want to have a CSM address the account. This means the overall scorecard could be showing a positive account when there is a problem, so it’s still important to look at every metric on a client’s card to make sure it is in good standing.

Taking Action on Customer Health Scores

The next step after setting up your CHS alerts is to create playbooks to work from when there is an alert or an account drops from green to yellow or red. This gives CSMs valuable information to work through any problems and put the account in good standing when possible.

Jeff suggested that you focus efforts on getting yellow accounts to green. A healthy account is six times more likely to rebuy or upsell than one that is “okay, ” he says. The effort you put into getting an unhealthy red account to an “okay” yellow account may not be worth it.

As the company grows, your CHS program should as well. At Raise.me there are thousands of customers/students who use the program. Because of this Jon has learned to use segmentation. He tracks a CHS for new customers going through onboarding and a CHS for long term customers.

In one last bit of advice, Loni’s recommends to “Make sure the team and company are bought into the score or people won’t act on behalf of it.”

Thanks to our panelists, it’s clear how valuable and productive Customer Health Score can be for Customer Success teams. It can take effort to determine the right metric for your company, but the result can be an excellent program that decreases churn.

As a Product Manager, you develop user flows to chart how customers move from signup to successfully using your SaaS product. Your colleagues in Customer Success are doing the same thing — mapping a flow of customer milestones to success.

But “success” can mean different things to PMs and CSMs. And, while both teams employ user flows (or customer journeys), what they put on them are very different, reflecting their very different goals.

You are responsible for making the product functionally work, with enough awesome UX so it’s relatively intuitive for the customer to use. For your team, “success” often means that the product works. It does what it says it will do, and does it well.

Customer Success is responsible for helping customers use the product to achieve their desired outcome. Most of the time, that desired outcome isn’t in the product – it’s outside of it. For example, if I purchase a budgeting app, my desired outcome is to save enough money to sun myself on a Caribbean beach, with a good-looking server to bring me fruity drinks with umbrellas in them. The Customer Success manager’s job is to get me there.

You might say it’s a conflict between focusing on the world inside the product and the wide, wide world outside of it.

And that conflict can bring about a deep divide between Product and Customer Success.

Yet, we’re all working towards the same goal: Creating a product people love, need and want more of.

What if you were to bring both user flows together, so the functionality inside the product meets the desired outcomes outside of the product?

The Customer Success Perspective

This is a basic Customer Success User Flow, riffing off of Lincoln Murphy’s mockup. This type of user flow shows how customers get to each successive Milestone – or the parts of the product that will take them to the next step towards reaching their Desired Outcome.

But this chart doesn’t show the most important part for the CSM: The success gaps between signup and that Desired Outcome.

It’s in these spaces that Customer Success does most of its work.

Success gaps are what stand between product functionality and success milestones or desired outcomes. My budgeting app might help me save money, but will it help me have an amazing Caribbean vacation? Of course not – the product isn’t designed for that.

But Customer Success content is designed for that. In e-books, blog posts, or social media ‘quick tips,’ Customer Success can tell me everything I need to know to successfully budget for my dream Caribbean getaway. This content can tell me things like “Don’t forget to include hotel taxes and airline fees in your budget,” or “When budgeting for vacation, experts suggest planning on spending $140 a day for food for two.”

Let’s take another example: Hubspot.

HubSpot’s product is an impressively integrated website, social media management, marketing, CRM and Sales platform. Their customer’s desired outcome is to build a successful online business. So, HubSpot’s Customer Success team created a Sales blog for salespeople, a Marketing blog for marketers, and the Hubspot Academy with certification courses in inbound marketing, email marketing, inbound sales, content marketing, sales software, marketing software, design for web and marketing agencies, contextual marketing, and HubSpot design.

They’ve created everything you could possibly need to succeed, in the real world, using their product.

HubSpot is an extreme example – most businesses don’t have the resources for anything so comprehensive. But the principle behind it is something we can all employ.

Give your customers the tools and information they need to do what they need to do.

And this is where Product comes in.

The Product Management Perspective

When you think of user flows, it is typically about what you want users to do next in the product – the functional completion of getting from A-Z.

In your user flows, you’ll see interactions within the product, with options for different paths users can take within the product.

And, once again, success gaps are between every single action.

This is often where you will insert in-app tutorials to cover the usability success gaps, but it’s not the PM’s job alone to think outside the product. That’s what Customer Success is for.

This is what I’ve been recommending to my clients

My clients often have user flows, ready-made, from their Product teams. They may or may not have user flows from their Customer Success teams – and if they don’t, I tell them to create one.

You have to, have to, HAVE TO know where your success gaps are!

Lately, however, I’ve recommended a new way to create user flows: By bringing Product Management and Customer Success to co-create a user flow together.

A user flow that shows what functionally needs to happen…

• Onboarding/Acquisition/Retention stages
• Success Milestones
• Where to move from Freemium to Paid subscription
• When to ask for Advocacy
• When to Upsell
• Markers indicating success gaps
• Where customers will find their first value, next values, and desired outcomes

It’s a user flow that brings together success inside the product with success outside of the product. And, it opens the door to getting Product’s ideas on ways to close the success gaps from within the product, and Customer Success’s ideas on how to improve UX.

What does this look like?

Something like this:

Clearly, this is a greatly simplified version of a user flow. But do you see the two sides coming together? Do you see the potential within those success gaps for Product + Success brainstorming?

And, most importantly, do you see how this user flow can actually get the user – from a Product and CS perspective – to their Desired Outcome?

Think of it this way: Every success gap presents an opportunity for Customer Success and Product to design a solution to bridge it. Sometimes that solution will be entirely on CS’s shoulders, like creating informative content, how-to’s, or videos. Other times, that solution will require your expertise to create an in-app pop-up tip, milestone celebration, or alert – and, when the success gap is a little too wide for a quick fix, a new feature or expansion.

By mapping both perspectives at the same time, you’re building the customer’s success into your process from the beginning.

The bottom line is…

If you and your Product team are only talking about the functional completion of the product, then it’s time to add a few more chairs to the conference room table – and invite Customer Success in.  Your product will be stickier when the functionality inside the product helps customers achieve their desired outcomes outside of the product.