Net Promoter Score (NPS) scores serve a purpose beyond measuring customer satisfaction; they offer cues for upselling and cross-selling opportunities.
When customers give high NPS scores, it signifies their satisfaction and loyalty. This means they’re likely interested in exploring more of your company’s offerings.
This, in turn, helps you plan your strategy to strengthen your relationship with existing customers, potentially boosting revenue while enhancing customer experiences.
Thus, NPS proves to be a versatile metric that gives insights into customers’ expectations and experiences. It also assists in gauging the effectiveness of building strong connections.
But, what will you do after gathering the survey data? There comes NPS score calculation.
How to Calculate NPS Score?
Calculating the NPS is really simple. To calculate the score, you need to create and send a short NPS survey to your customers. Your customers will rate their score on a scale from 0 to 10 about their likelihood of recommending your SaaS product to others. Their answers segregate them into three groups:
- Promoters aka your fans (9-10)
- Passives aka your neutrals (7-8), and
- Detractors aka your critics (0-6)
When you subtract the percentage of Detractors from the percentage of Promoters, you get your NPS score.
Now you must be thinking about
Well, all these questions are answered in this blog. So, continue reading.
What is a Good NPS Score for SaaS Industry?
Now that you’ve got your NPS score it’s time to know whether it’s a good score or not.
If your NPS is
- Between 0 and 30 then it’s a solid score – indicating progress in customer satisfaction.
- In the 30 to 70 range then it’s more than good – it reflects excellence in your approach.
- Above 70 then it’s a commendable achievement – showcasing exceptional customer experience.
Though, truth be told, hitting that mark is a bit like hitting a home run – not everyone does it.
So if you have got a score let’s say 45, then is it considered a good score? Let’s find it out here.
How to Determine if Your NPS Score is Good or Not?
When it comes to determining your NPS score, there are several key steps you can take to gain meaningful insights.
1. Benchmark NPS Score by Industry
Start by researching NPS benchmarks specific to your industry. Different industries have varying standards for what constitutes a good NPS.
That’s why comparing your NPS against industry benchmarks can gauge whether your score is competitive and aligned with customer expectations in your field.
For instance, according to Satmetrix’s 2023 NPS benchmarks report, the average NPS score for SaaS companies hovered around 27. If your SaaS business NPS score is below 27 then it’s not considered a good score, and if your NPS score is above 27 then you’re doing pretty well.
2. Benchmark Against Your Own Data
A vital step in assessing your NPS score is comparing it to your previous scores. Tracking the trend of your NPS over time can reveal improvements or declines in customer satisfaction.
If your NPS is consistently increasing, it suggests your efforts are positively impacting customer loyalty. Conversely, a declining trend indicates the need for closer examination and changes in your strategies.
3. Segment the Score by Channel
It’s essential to analyze NPS scores by different customer interaction channels. Whether it’s through email, website, or in-person interactions, there’s a possibility of customers having different experiences.
For instance, WhatsApp surveys give more survey response rates in India however, when you call then they get irritated which leads to a low response rate.
That’s why segregating scores by channel helps you identify which touchpoints are excelling and which ones require enhancement. This targeted approach enables you to focus your resources where they’re most needed.
4. Regional Benchmarking
Customer preferences and expectations differ across various regions. By comparing your NPS scores across different geographical areas, you can tailor your strategies to better suit the specific needs of each region.
For example, in the United States, survey participants can rate your survey either remarkably high, such as 9 or 10, or exceptionally low, like 2 or 3. Conversely, when conducting an NPS survey in Indonesia, you’re likely to receive more scores of 7, 8, or 9 as they’re much more generous.
This is how you can embrace SaaS NPS benchmarking. By doing this, you can gain the required insights to enhance customer loyalty and drive growth. Also, it enables you to evaluate your performance against established industry standards.
NPS Benchmark Scores of Top 38 SaaS Companies
Here’re the NPS scores of the top 38 SaaS companies:
|S. No.||Company||NPS Score|
|1||Nutanix NPS score||92|
|2||NetMotion NPS score||91|
|3||Cohesity NPS score||90|
|4||Druva NPS score||89|
|5||AppDynamics NPS score||87|
|6||Qumulo NPS score||85|
|7||SignNow NPS score||73|
|8||Veeam NPS score||73|
|9||Zoom NPS score||72|
|10||Snowflake NPS score||71|
|11||Square NPS score||70|
|12||Cleo NPS score||70|
|13||Netflix NPS score||67|
|14||DocuSign NPS score||66|
|15||Paypal NPS score||65|
|16||CustomerGauge NPS score||60|
|17||Google NPS score||58|
|18||Slack NPS score||55|
|19||Dropbox NPS score||54|
|20||Intuit NPS score||52|
|21||Hulu NPS score||51|
|22||YouTube NPS score||49|
|23||Instagram NPS score||49|
|24||Atlassian NPS score||48|
|25||Shopify NPS score||43|
|26||Idera NPS score||42|
|27||Uber NPS score||37|
|28||eBay NPS score||36|
|29||Adobe NPS score||33|
|30||Twilio NPS score||33|
|31||Microsoft NPS score||31|
|32||Twitch NPS score||30|
|33||Yahoo NPS score||30|
|34||Mailchimp NPS score||28|
|35||LinkedIn NPS score||21|
|36||SalesForce NPS score||20|
|37||Facebook NPS score||19|
|38||Lyft NPS score||9|
Source – CustomerGauge
Now let’s explore different ways to improve your SaaS NPS scores.
How to Improve NPS Score in SaaS?
Here is how you can improve your NPS score in the SaaS world.
- Prioritize Customer Support: Swiftly address queries and concerns to show commitment to customer success, fostering loyalty and positive word-of-mouth.
- Enhance Product Usability: Ensure your SaaS product is user-friendly with simple interfaces and easy navigation, contributing to positive user experiences.
- Personalize User Experiences: Tailor interactions based on individual preferences, making customers feel valued and engaged with your product.
- Close the feedback loop: Listen actively to customer feedback and take action to address their suggestions, demonstrating your dedication to meeting their needs.
- Offer incentives for referrals: Encourage satisfied customers to refer others by providing incentives or rewards, leveraging their enthusiasm to expand your customer base.
- Continuous improvement: Regularly assess NPS scores, analyze feedback, and adapt strategies with customer expectations to deliver the best customer experience.
This is how you can improve your NPS score in the SaaS industry.
And The Bottom Line
Now you know what is a good NPS score for SaaS.
A good NPS score isn’t just a mere number; it reflects how content your customers are and shows how well your business is doing. It’s more about having real supporters of your product.
In today’s digital world, where customer opinions matter, a good NPS score can guide your business amid competition, helping you grow and build strong customer relationships.
That’s why create NPS surveys tailored to your SaaS business by exploring SurveySensum. It’s an exceptional customer feedback tool that offers multiple survey templates and robust features to analyze the gathered data.