At this year’s SaaStr conference (the largest annual SaaS-focused conference of its kind), Net Promoter (NPS) was once again a top over-arching theme throughout the event.
In spite of the fact that there wasn’t any one single talk dedicated exclusively to the topic (we’ll be sure there is next year), it came as no surprise that it was brought up as often as it was.
Over the past few years, we’ve seen an increasing number of SaaS companies embrace Net Promoter as one of the core key metrics they measure their success upon.
In fact, it’s not unusual now to see a company’s NPS score alongside other KPI’s (key performance indicators) such as ARPU, LTV, MRR, ARR, etc.
Why the increased interest amongst SaaS companies?
Simply put … reducing customer churn and increasing net revenue on a monthly basis (organically) are top priorities for all SaaS companies. It just so happens that these are also two of the core tenets of NPS. It’s a match made in heaven.
You don’t have to look very far to see the impact and significant importance SaaS leaders have put on the NPS methodology:
Bill Macaitis, former CMO of Slack has stated that [at Slack], “Net Promoter Score provides a north star for everyone in the company to understand.”
He believes that Slack’s success is due in large part to the company’s focus on a superior customer experience. One where, “every single person at the company influences the perception and experience the brand delivers.”
Ultimately, that experience leads to growth through customer loyalty, evangelism and word of mouth referrals — all of which is tracked and driven through NPS, which he also considers their leading indicator of long-term growth.
Famed SaaS investor, Jason Lemkin, has also stated publicly (on more than one occasion) his affinity towards measuring NPS as a core metric:
“I was wrong. Track NPS as a core, monthly metric. Share it with everyone. And importantly — use it for a cross-functional discussion across Sales, Support, Customer Success, Marketing, Engineering, and Product. It’s the one metric all of them directly impact, and all of them are equally responsible for.”
Then there are the endless number of stories shared by SaaS companies everywhere, such as how Baremetrics increased their customer loyalty by 125%, or how Hiveage used NPS to capture more organic growth.
What do all of these people and companies have in common?
They make NPS a priority. More importantly though, they implement and leverage their NPS program the right way.
You can do the same.
We’re giving away all of our best practices, strategies and tactics for implementing, measuring and acting on NPS successfully for SaaS companies – from beginning to end. Over the past few years, some of the top companies in SaaS including MailChimp, Intercom, Adroll, ConvertKit and more have turned to Promoter.io for our guidance and expertise.
All of those lessons and guidelines are now available to you for free in the book below. Download and give it a read today!