5 Benefits of NPS Program You May Be Missing Out On

4 min readFeb 16, 2017

Setting up a robust NPS process can help with product management, customer communications, reducing churn, and even finding investment!

In this post, we dive into five benefits of NPS that you might not be taking advantage of.

Find Product Market Fit

Product Market fit is what happens when you’re selling a product market demands. How do you know when you’ve found it? A good NPS score is the perfect indicator.

Why do your Promoters love you? If it’s because your product makes their life better, you’re on your way to product market fit. Double down on what’s already working well in order to attract even more of your perfect customers.

Read more about analyzing your NPS scores in this blog post.

Personalize Relationships with Your Customers

You can’t treat every customer the same. Measuring NPS will help tailor your marketing and communications to each user, so you can be sure they land on the mark.

Your Promoters: Those that answered 9 or 10 on their last NPS survey; are usually willing to help you out. Why not get even better acquainted with these power users?

Your customers who’ve responded with a 6 or lower; give them a little extra love:

- a priority queue for support tickets,

- proactive calls offering additional coaching,

- a free trial of some new features.

They are at the highest risk of churn, so time spent nurturing them will pay off in your MRR figures.

Predict Future Growth

Each response on an NPS survey indicates a risk of churn or expansion in the future:

- higher risk of canceling or downgrading: score 4 or lower,

- lower risk: 8.

If we assign a risk percentage to each number, we can actually predict the impact on future growth and churn.

Experience shows that about 50% of detractors will churn in the next 90 days, and 40% of passives will churn in the next 180 days.

The good news is that you’re now able to target those customers based specifically on their risk of churning.

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Bonus: You can also track how many customers your Promoters refer. By moving more customers into the 9–10 range, you’ll see a bump in referrals!

Reduce Churn

Detractors are closer to Promoters than they are to Passives. Surprising? Because Detractors have feelings towards your brand, they are more invested in making it work. Fixing their concerns will earn their loyalty.

You also have the silent majority — 60% –of customers who haven’t replied to a survey. But they likely have similar concerns to those customers who have responded.

Analyzing the bigger picture will show you where small changes can bring the most significant results:

- a persistent bug that is dragging down your score,

- a missing feature would convert some of those passives to promoters.

Besides responding on an individual level, analyzing your overall results will help you bring down churn holistically and dramatically.

Get Better Investment Deals

Some investors place such high importance on NPS that they will even provide a better investment deal for companies with a proven good NPS score. Jason Lemkin, the investor at SaaStr, recently tweeted that he would invest at the same rate in companies with good NPS score (well over 40) compared to companies with a higher MRR.

Focusing on acquiring the right customers means that your current MRR is at a lesser risk of churn. Phillip Klien, General Manager of Uber agrees. “Many private equity firms & venture capitalists will insist on performing a Net Promoter Score survey with your customers before they invest in your business.” he explains, stating that Sequoia Capital, a leading SaaS investor has all of their investments use NPS to gauge potential growth.

For example, Zoom, a SaaStr investment currently has an NPS of 68, which is extraordinarily high.

Unexpected Benefits of Striving for Good NPS Score

Embracing an NPS program across the organization will help focus every employee on the end goal — a product that customers love to use and talk about.

When you start creating a common goal, you’ll see benefits pop up in all sorts of unexpected places. From the way engineering conversations happen to having more aligned hiring priorities, being an NPS driven company will change the way you work.




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