[webinar] survey and net promoter score best practices

©2015 Gainsight. All Rights Reserved. ©2015 Gainsight. All Rights Reserved.

Survey Best Practices & NPS

Tracy Zundel, Customer Success Director July 9, 2015

©2015 Gainsight. All Rights Reserved.

Agenda

•  Net Promoter Score: What & Why? •  Survey Best Practices:

² Planning ² Designing ² Communication Strategy ² Analyzing Feedback ² Taking Action

•  Managing Surveys in Gainsight


What is Net Promoter Score (NPS)?

•  Customer loyalty metric developed in 2003 based on the concept that a company’s customers can be categorized into three categories: Promoters, Passives & Detractors

•  Objective: Obtain a clear & easily interpretable score which can be compared over time and between different customer segments

•  Participants are asked “How likely is it that you would recommend [our company] to a friend or colleague?”

•  The question is answered on an 11-point rating scale, ranging from 0 (“Not at all likely”) to 10 (“Extremely likely”)!

“The Net Promoter methodology is so simple you can explain it with a drawing on a napkin.”

- http://www.satmetrix.com/nps-score-model/


How is NPS Calculated?

•  Promoters (9 or 10) = Loyal Advocates

•  Passives (7 or 8) = Satisfied but not enthusiastic •  Detractors (0 to 6) = Dissatisfied RISK


Why do we care? Gainsight Q2 2015

*Resource: “Economics of Net Promoters, 2015” !https://experiencematters.wordpress.com/category/roi-of-customer-experience/!!

•  NPS not only reflects customer satisfaction, it has proven to be an indicator of potential business growth

•  *Research shows that in comparison to detractors, promoters are significantly more likely to: ü  Be repeat buyers ü  Try new offerings ü  Forgive when a company makes a mistake ü  Actually recommend a company to someone else

•  People tend to be more likely to tell a negative story than a positive one, so understanding and mobilizing Promoters is critical to your success!


Why do we care?


Survey Best Practices: Planning Identify who to survey q  If not surveying all customers, apply segmentation to your sampling strategy

to balance representation (i.e. products, regions) q  Cull out customers that will receive a transactional survey in the same time

frame q  Be sure to include decision makers and key stakeholders with purchase

influence q  Don’t cherry pick or avoid surveying unhappy customers

Ø  Input from any customer is valuable Ø  Create processes that prevent “gaming the system” which will skew the results,

especially if compensation is tied to NPS q  Think carefully before offering incentives

Ø  Consider a donation to a non-profit for each response


Survey Best Practices: Planning

q  Establish a survey cycle for regular management reporting, monitoring of trends

q  Issue Relationship Surveys no more than twice a year Ø  Gainsight surveys our customers every 6 months from

their contract date Ø  Allow ample time to identify potential challenges with

renewals q  Use your Customer Journey Map to identify touch points

where ongoing Transactional Surveys will be most informative "

q  Coordinate your survey plan across departments to create a comprehensive strategy and avoid a fractured process Ø  Maintain a survey & communication calendar


Survey Best Practices: Survey Design

q  The overall message should indicate it’s all about the customer (remember “WIIFM”)

q  Carefully consider what to ask, beyond the NPS question Ø  What is the purpose of each question? Will the

feedback be actionable? q  Consistency will enable you to measure trends and map

them to your company’s initiatives (NPS benefit) q  To ensure quality data, ask questions that are clear and

do not require any interpretation q  NPS question can be used in combination with other

CSAT questions on any survey


Survey Best Practices: Survey Design q  Consider having different questions for customer

segments and/or roles Ø  Use linked questions thoughtfully (answer to one

question triggers another) q  Matrix questions can help you understand the

customers’ view of your product or features q  Drop-down choices make for easier analysis"q  To increase response rate and reduce

abandonment"Ø  Resist the urge to ask too many questions! Six

questions or less typically results in a higher response rate

Ø  Focus on topics customers care about"Ø  Make the survey easy to access and submit"


Survey Best Practices: Communication Strategy q  Establish a communication strategy designed to elicit

the best possible response rate Ø  “Heads up” message from the CSM asking for

participation in the upcoming survey Ø  Compelling invitation text with explanation of how

feedback will be used Ø  Reminder after initial invitation, including close date

q  Use a simple subject line – no excessive capitalization or exclamation Ø  Convey to customers that it’s all about them!

q  Include the estimated time to complete the survey q  If desired responses are not received, you can consider

collecting feedback via phone Ø  Note: this can lead to skewed results

Use Gainsight CoPilot for one-to-many communications


Survey Best Practices: Analyze Results

q  Analyze responses across segments and based on criteria significant to you Ø  Customer lifecycle stage, user role, frequency of use, ARR, account tier,

product(s) used q  Review and categorize all comments q  Look for meaningful patterns, commonalities q  Identify who your Detractors and Promoters are and determine why

Ø  Don’t focus only on Detractors!


Survey Best Practices: Take Action

q  Discuss key takeaways with internal teams and leaders Ø  Confirm executive and cross-departmental buy-in

q  Collaborate across your organization to determine how to make most impactful changes

q  Commit to an immediate action plan Ø  Identify owners of each piece Ø  Consider “voice according to value:”

Should your highest revenue customers’ input carry more weight?


Survey Best Practices: Take Action Close the loop: a critical step! q  Acknowledge each response

Ø  A phone call or email will be a welcome surprise Ø  Empower CSMs to respond and act appropriately Ø  Address specific questions asked in the Comments Ø  Embrace the opportunity to engage with your customer

q  Communicate your insights and action plan to customers •  Messaging from a senior executive can be very powerful

q  Keep in mind Ø  Passives present an important opportunity Ø  You can mobilize Promoters to make them active advocates


Survey Best Practices: Look Forward Continually improve and evolve your survey program q  Don’t just survey and move on q  Schedule ongoing meetings to discuss progress on action plans q  Continually strive to increase response rate - consider options such as

Ø  Fewer or simpler questions Ø  Improving communication strategy Ø  Validating contacts

q  Don’t get hung up on the score!! ²  A ”good” NPS score is one that is trending positively and compares favorably

with your competitors


Survey Best Practices: Summary ü  Coordinate survey requirements across departments ü  Identify which users to survey ü  Establish frequency and schedule ü  Determine which questions to ask & design your survey

template in Gainsight ü  Brand message to your customer asking them to complete

the survey ü  Send your survey

Ø  Issue reminder to non-responders ü  Review and analyze results – individually and cohesively ü  Create a plan and take appropriate action ü  Close the loop with respondents ü  Communicate actions back to ALL customers


Gainsight Surveys!


Administering Surveys in Gainsight q  Use Gainsight to ensure appropriate action is taken q  Trigger Calls to Action (“CTA”) on Promoters

Ø  Thank them for their support Ø  Funnel to Marketing for case studies, testimonials or references

q  Trigger CTAs on Detractors Ø  Follow up to address customer concerns

q  Trigger CTAs on Passives Ø  Thank them for their response – they are future Promoters

q  Create reports on survey responses and track follow-up on CTAs q  Communicate findings and action plan based on feedback to all customers

(close loop process) q  Use NPS as an indicator of customer health in scorecards


Gainsight Survey Results

Valuable take-aways q  NPS by customer segment

§  Executives and customers with highest ARR had higher NPS

§  Most frequent users had higher NPS q  Items for action plan

§  We need to simplify implementation: Express §  Customers like out thought leadership and

want best practice recommendations

"

NPS for Executives Sponsors

45

NPS for top tier ARR customers

40 Better

implementation strategy and

execution

More best practices

Great thought

leadership!


Gainsight Survey Results – Q1 2015

0

10

20

30

40

50

60

2 3 5 6 7 8 9 10 Grand

Total On a daily basis 2 1 1 2 8 11 17 10 52

# Re

spo

nde

nts

Daily User Ratings

NPS for respondents who identified themselves as using Gainsight “daily” (46%)

40

NPS for respondents who identified as using Gainsight “weekly” (33%) 31

NPS increases with frequency of product use"


Gainsight Survey Results

Additional Insight and lessons learned Ø  Mobilized Promoters by inviting respondents to join our question

Advocacy Program §  27 new references §  24 customers willing to provide a testimonial §  22 who will provide a review of Gainsight §  31 want to join Gainsight Community

Ø  Survey improvements: §  Too many questions

² Moved to short/ long cadence §  Remove questions that don’t elicit actionable feedback

² If you won’t use it, don’t ask it


How do our customers measure the ROI of Gainsight?"

Gainsight Survey Results – Q1 2015

0% 10% 20% 30%

# Customer Saved

# CTAs/ Alerts Closed

Increased Health Score

Improved Retention Rate

Upsell Opptys Identified & Closed

I Don't Measure ROI of Gainsight

NPS for Executives & Business Owners that measure the ROI of Gainsight 45

NPS for those that don’t measure ROI

23


Manage & Analyze Survey Results in Gainsight Calls-to-Action & Playbooks in Cockpit

Design rules to trigger CTAs based on survey results Identify Playbook Tasks to ensure consistency in follow-up

Close that loop!


Manage & Analyze Survey Results in Gainsight Customer360

Track historical survey responses to identify trends View individual results and actions taken


Manage & Analyze Survey Results in Gainsight

NPS Tab See aggregated results or filter for details View by role, end-user, customer, CSM

Review scores and comments


Manage & Analyze Survey Results in Gainsight Survey Analyze Section

Review results for each question Drill-down for detail or export


Manage & Analyze Survey Results in Gainsight Gainsight Home Dashboards

Create custom reports with selected criteria Incorporate into Dashboards


Gainsight Survey Guide Gainsight’s Survey Guide: how to design, edit, distribute and view survey results !!https://support.gainsight.com/hc/en-us/articles/201941826-Survey-Overview!!


Valuable Resources for Reference !•  http://waypointgroup.org/!

o  B2B customer experience industry consultancy and certified Net Promoter Loyalty Partner!

o  Steve Bernstein – Founder of Waypoint Group and co-author of “Failure Sucks!” a book on best practices in B2B customer success !

•  http://www.netpromoter.com/!

•  http://www.satmetrix.com/!

•  http://www.temkingroup.com/!o  Customer experience research, consulting and training firm!o  Bruce Tempkin’s Blog “Customer Experience Matters:” !

https://experiencematters.wordpress.com/!


“You don’t earn loyalty in a day. You earn loyalty day-by-day"

Jeffrey Gitomer

[webinar] survey and net promoter score best practices

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