(TIP: The SaaS average is actually around 30). <\/em><\/p>\n\n\n\n Because of that, you might expect a different result. And so the actual result might seem a little… upsetting. <\/p>\n\n\n\n What might be particularly worrying is the number of NPS detractors. <\/p>\n\n\n\n Well, here\u2019s the thing – Having detractors is quite common. It\u2019s not ideal, of course, but overall, you aren\u2019t the only SaaS brand seeing detractors on their NPS score. More importantly, you can convert them into promoters. <\/p>\n\n\n\n In this guide, I\u2019ll show you exactly how to do it. <\/p>\n\n\n\n But before getting into the practical tips, let\u2019s get some theory out of the way, shall we?<\/p>\n\n\n\n In simple terms, NPS detractors are unhappy customers \u2060\u2014 they are unsatisfied with the product, service, or experience you offer.<\/p>\n\n\n\n In business, however, the term \u201cdetractor\u201d is often associated with a segment of NPS survey<\/a> respondents. Here, detractors are people who score your SaaS from 0 to 6. <\/p>\n\n\n\n Essentially, though, it\u2019s the same thing: only unhappy customers respond with a score between 0 and 6.<\/p>\n\n\n\n This is a bummer for us, founders, isn\u2019t it? Only 1 out of 26<\/a> unhappy customers ever complain. <\/p>\n\n\n\n (And, as a matter of fact, viewing this absence of feedback as a sign of satisfaction makes the initial NPS results look disappointing.)<\/p>\n\n\n\n What this means is that you can\u2019t rely on customers to tell you that they are \u201cdetractors\u201d; you\u2019ll have to identify them proactively. <\/p>\n\n\n\n Here are a few ways to spot detractors:<\/p>\n\n\n\n This may seem obvious but the simplest way to uncover how many NPS detractors you have is by running an NPS survey. <\/p>\n\n\n\n A dedicated NPS survey software<\/a> will quickly calculate your scores and display them in a dashboard. But what’s more, you’ll also get access to the information about who your detractors are so you can try to turn them into promoters. <\/p>\n\n\n\n NPS<\/a> (registered trademark of Bain & Company) surveys measure customer satisfaction and customer loyalty to a company by asking a 10-point question like this:<\/p>\n\n\n Here, those who give a score from 0 to 6 identify as detractors. Similarly, passives give 7 or 8, and promoters give 9 or 10.<\/p>\n\n\n\n Besides NPS, you can also run CSAT or CES customer surveys<\/a> to pinpoint detractors.<\/p>\n\n\n\n Now, neither CSAT nor CES labels a particular segment of customers \u201cdetractors\u201d like NPS does. However, both are customer satisfaction metrics, and you can bet that dissatisfied customers (according to both surveys) are detractors.<\/p>\n\n\n\n And if someone\u2019s response to this is below neutral, you can identify them as a detractor.<\/p>\n\n\n\n If someone finds interacting with your product or service difficult, you can be pretty sure they are frustrated and likely detractors. For example, if your checkout process is complicated, 74%<\/a> of customers are likely to switch brands.<\/p>\n\n\n Churn prediction software or customer health monitoring software<\/a> helps find customers on the verge of churning.<\/p>\n\n\n\n These software use factors like the following into consideration:<\/p>\n\n\n\n And gives you answer to questions like:<\/p>\n\n\n\n The overview result you\u2019ll get will be in the form of a score per customer:<\/p>\n\n\n\n Consider customers with scores under 35 as detractors.<\/p>\n\n\n\n Note:<\/strong> You can also find detractors by manually looking at each factor customer heath scoring systems account in calculating.<\/p>\n\n\n\n There is a couple of reasons, actually:<\/p>\n\n\n\n Detractors can not only leave you and stop using your product. They can also discourage others from trying out your app by spreading negative word-of-mouth.<\/p>\n\n\n\n Don\u2019t believe me? Well, consider these statistics:<\/p>\n\n\n\n On the contrary, if you convert detractors into promoters, your SaaS will get positive reviews, and that uplift in the brand image will lead to more sales. Here\u2019s a relevant, interesting stat:<\/p>\n\n\n\n Detractors = churn, typically. <\/p>\n\n\n\n And needless to say, every customer that leaves you reduces your predictable revenue. <\/p>\n\n\n\n What\u2019s more, they are unlikely to come back ever again. 91%<\/a> of unhappy customers will not willingly do business with a brand again, after all. <\/p>\n\n\n\n Also, as I mentioned above, detractors will keep others from purchasing from you \u2060\u2014 and will cut your future potential income.<\/p>\n\n\n\n But the worst of all, detractors can leave before you can recover the money you spent on acquiring them. <\/strong><\/p>\n\n\n\n The median SaaS startup spends about 92% of the first-year average contract value<\/a> on the sale, implying an 11 month payback period on the CAC (customer acquisition cost). In other words, if the customer becomes a detractor and leaves before 11 months, you\u2019ll be at a loss.<\/p>\n\n\n\n Tip<\/strong>: Try to get customers to subscribe to an annual plan so even if they become detractors in between the subscription period, they\u2019ll more probably not leave until the subscription is over. In the meantime, you can put efforts into converting them into promoters.<\/p>\n\n\n\n A typical detractor wants the solution your company provides, but they don\u2019t want anything to do with you. So, naturally, they look for alternatives and switch to a competitor. And if they like it there, they boost their profits as well as image.<\/p>\n\n\n\n Imagine someone tweeting, \u201cI switched from [Your Company] to [Competitor SaaS] last month, and I don\u2019t think I am leaving [Competitor SaaS] ever again!\u201d<\/p>\n\n\n\n Not only does it destroy your brand image, but it also uplifts the competitor\u2019s image. Plus, of course, it\u2019s more money in the competitor\u2019s pocket (that used to be in yours).<\/p>\n\n\n\n Identifying detractors is step-0 of converting detractors into promoters. <\/p>\n\n\n\n Here\u2019s what to do next:<\/p>\n\n\n\n Feedback is your friend. The more you have it, the better you can assess customer needs, take action, and convert detractors to promoters.<\/p>\n\n\n\n As I mentioned, only 1 out of 26 unhappy customers complain\u2014the rest churn. So if you want to hear from significantly more unhappy customers, you need to make it easier for them to voice their opinions.<\/p>\n\n\n\n Here are a few things you can do:<\/p>\n\n\n\n (Related reads: Best Time to Send NPS Survey<\/a> and When and How Often to Send a CSAT Survey<\/a>)<\/p>\n\n\n\n I mean \u201crespond quickly (to detractors)\u201d in two contexts:<\/p>\n\n\n\n When someone shares their feedback, respond as fast as you can, both in terms of acknowledgment and action.<\/p>\n\n\n\n An automated message like \u201cThanks for sharing your feedback…\u201d works. However, a personalized message that focuses on the customer\u2019s frustration and shares the plan to solve it works best. For example, here\u2019s Mailmeteor\u2019s response to being asked about not having the follow-up feature on their app:<\/p>\n\n\n Such approach acknowledges the customer\u2019s pain point. It also ensures the customer that the problem will disappear soon.<\/em><\/p>\n\n\n\n \u201cSlow response times are by far the biggest frustration for buyers\u201d – Mckinsey Research<\/a>.<\/p>\n\n\n\n Even regular customers don\u2019t like getting late replies. So imagine the detractors\u2019 frustration if they don\u2019t get immediate replies to their queries.<\/p>\n\n\n\n Therefore, prioritize responding to all detractors\u2019 queries and keep them happy on that front at least. <\/p>\n\n\n\n Unless your customer is an age-old enemy, they don\u2019t want to be frustrated with your product or service. Detractors are customers first, detractors second. So be empathetic and understand their point of view. <\/p>\n\n\n\n Listen to their complaints, apologize, acknowledge their needs, and take action. Do not get defensive. (Here are a few examples<\/a> of non-defensive responses.)<\/p>\n\n\n\n Tip<\/strong>: Consider gifting a coupon, an extended free trial, an additional month on their subscription, etc., as a token of apology.<\/p>\n\n\n\n How will your customer service department know that the message or call is from a detractor and hence must be taken care of with utmost care? By enabling them to see the NPS results and previous conversations.<\/p>\n\n\n\nWhat Is an NPS Detractor?<\/h2>\n\n\n\n
How to Identify Your NPS Detractors?<\/h2>\n\n\n\n
1. Run an NPS survey<\/h3>\n\n\n\n
![\"Typical](\"http:\/\/ec2-34-253-215-75.eu-west-1.compute.amazonaws.com\/wp-content\/uploads\/2021\/10\/image2-1.png\")
2. Run other customer surveys<\/h3>\n\n\n\n
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![\"Unhappy](\"http:\/\/ec2-34-253-215-75.eu-west-1.compute.amazonaws.com\/wp-content\/uploads\/2021\/10\/image4-1.png\")
3. Use churn-prediction software<\/h3>\n\n\n\n
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![\"NPS](\"https:\/\/refiner.io\/blog\/wp-content\/uploads\/2022\/08\/3-1024x384.png\")
<\/figure>\n\n\n\nWhy You MUST Turn Detractors Into Promoters<\/h2>\n\n\n\n
#1. Detractors can harm your brand image<\/h3>\n\n\n\n
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![\"NPS](\"http:\/\/ec2-34-253-215-75.eu-west-1.compute.amazonaws.com\/wp-content\/uploads\/2021\/10\/image1.jpg\")
<\/figure><\/div>\n\n\n2. Having too many detractors can bring your profits down<\/h3>\n\n\n\n
#3. Your detractors will fill your competitors coffers with dime<\/h3>\n\n\n\n
7 Ways To Turn NPS Detractors Into Promoters<\/h2>\n\n\n\n
1. Encourage Providing Feedback<\/h3>\n\n\n\n
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2. Respond quickly<\/h3>\n\n\n\n
1. Respond to the feedback quickly. <\/h4>\n\n\n\n
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![\"Proactive](\"http:\/\/ec2-34-253-215-75.eu-west-1.compute.amazonaws.com\/wp-content\/uploads\/2021\/10\/image5-1.png\")
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2. Respond quickly, in general.<\/h4>\n\n\n\n
3. Be empathetic<\/h3>\n\n\n\n
4. Integrate NPS scores into your CRM<\/h3>\n\n\n\n