Imagine you have 100 of your customers sitting directly in front of you. At the moment, 100% of their attention is focused squarely on you.
You start by asking them if they’d be willing to providing you with a few minutes of their time for some quick feedback.
20 customers walk out, leaving 80 customers willing to participate.
The first question you ask them is, “on a scale of 0 to 10, how likely are you to recommend my company to your friends or colleagues?”
30 customers walk out, leaving 50 who answered your first question.
The second question you ask them is, “What’s the biggest reason for the score you chose?”
15 customers walk out, leaving 35 who answered your second question.
At this point, you’ve gotten a 50% response rate on your first question, and 70% response rate on your second question.
We’re now at least a minute into their time and you decide to ask another question.
This time however, 18 customers walk out, leaving only 17 who are willing to answer your third question.
You push again and ask yet another question. Now 9 more customers walk out, leaving only 8 customers who are willing to answer your question.
We’re now only 4 questions deep and we’ve lost 92% of our customers willing to answer questions.
Now, if your customers were truly sitting across from you in person, it’s unlikely that any of them would actually walk out of the room. However, in the online world, this scenario above is pretty close to the reality of customer surveys.
The fact is, for every additional question you ask beyond the second question, you’ll see a significant decrease in overall response and completion rates. Especially if it is not targeted or meaningful to that specific customer/user.
While it’s tempting to ask your customers as many questions as you can conceive of, most companies don’t consider the implications.
In the all too realistic scenario above, we were only at 4 questions and had already lost all but 8 willing customers. Imagine if the survey were 12 or even 15 questions. We have customers and prospects tell us tales like this every single week (and we’ve seen it in our own tests).
Your response would be next to nil. You could promise gift cards and iPads galore to try and get more customers through a survey, but if you think this data will be accurate and not rushed, you’re in for a big surprise.
This is precisely what drove the team over at Greetabl to Promoter.io.
Started in 2012, Greetabl is a fast-growing upstart based in St. Louis, Missouri, offering customers a unique alternative to the standard greeting card.
What began as a creative wedding gift idea made from single-serving cereal box, has now turned into a venture-backed enterprise serving 1000’s of repeat customers across the United States and Canada.
Their product is quite slick. You start by choosing one of 30 unique printing patterns, along with one of 40 possible gift options. You’re then prompted to personalize your greeting by adding your message and photos. After that, you’re all set.
Greetabl prints your design on demand, folds it into a box, inserts your gift inside and away it goes. 6 days after you place your order, your recipient receives their special greeting.
Check it out …
Just based on their current NPS score alone (between 70 to 78), you can tell that their offering has been well received.
But, that hasn’t always been the case.
Not long ago, they had an NPS score of 59, which still was great, but not at the world class level they are at today.
While their lower score had some to do with unmet customer needs, a large part had to do with the way in which they were surveying their customers.
Before the Greetabl team began working with Promoter, they had been sending each customer a 12 to 15 question survey, with NPS embedded somewhere within.
Companies that follow this long-form survey alongside NPS approach will always run the risk of receiving inaccurate data. Not just due to the significant decrease in response rate, but also because of survey fatigue.
As I mentioned at the start of this post, after two questions, survey participation drops significantly. Those that stick around become impatient and put less thought into their answers.
This is particularly damaging when it comes to capturing meaningful and thoughtful verbatim feedback to the second question, which is critical to driving value at the end of the day.
After Greetabl switched to measuring NPS the correct way, they immediately doubled their response rate.
Not only that, but the quality and quantity of feedback increased and become much more actionable because it was highly focused.
The big misconception with NPS is that by not asking additional and specific questions, you’ll miss out on key discoveries from your customers.
The reality is, when implemented correctly, a Net Promoter survey will draw out the most important and actionable insights that have the greatest impact on the health of your company.An NPS survey will draw out the most important customer insights that have the greatest impact. Click To Tweet
Greetabl noticed this as well, noting that the answers they did receive from their previous survey was hard to act on.
The way they take action on their results today has completely changed.
Each Friday they print out all of the feedback they received that week and read them together as a team. They discuss each response and decide as a unit what actions to take.
Every customer that provides feedback is responded to personally and, depending upon their status (promoter, passive or detractor) there is usually additional dialog. The Greetabl team treats every response as the start of a relationship, not the end of one.
In order for the team to ensure they are properly prioritizing their action items, each piece of feedback is tagged according to category (price, delivery, etc.) and customer sentiment. They then use that data to analyze their most relevant trends (positive and negative) to act upon.
One of their top positive trends has been “recipient engagement”. In other words, the reactions their customer have received from the recipients of the greeting.
In this instance, they were able to update their marketing to reflect some of the terms of gratitude their customers were mentioning within their feedback. (i.e. bestie, love, etc.). In turn, this helped Greetabl really hone in their message to speak in terms their core customer could relate to.
Negative feedback has been just as important to their growth as well.
While their 6-day delivery isn’t a terribly long time to wait for a custom-made product, it has still been a point of contention among customers. Through their analysis, Greetabl could see that speed of delivery was their top negative trend and needed to be addressed.
What they discovered however was that much of the unhappiness was due to a simple misunderstanding. Customers were confusing a 2-day fulfillment message to mean that the package would arrive in 2 days.
Greetabl was able to quickly resolve much of the confusion by simply updating their messaging to set up the proper delivery expectations up front.
At the end of the day, Greetabl’s model relies heavily on repeat purchases and word-of-mouth expansion. Relationships with their customers is the key to their growth.
Since they started measuring their NPS with Promoter.io, they’ve not only doubled their customer engagement, but they’ve also seen an overall increase in recurring purchases and new customers via referrals – which is the best (and most profitable) kind of growth.
Greetabl is a concrete example of the positive impact measuring NPS the correct way can have on your business.