Many entrepreneurs, technologists and product managers will nod upon hearing this universal business truth: customers go first. In the end customers are the reason businesses exist, by adopting and paying for a company’s product or service.

The term “customer success” is a hot topic these days, and can mean various things, but below I’ll explain the term with the meaning — how your company interacts with customers to guarantee success for it after the interaction.

These five words and different topics are what we’ll try to identify in the text below (or the video above).

  1. Ask — Who, what and when to ask questions to improve your product.
  2. Listen — Summarize and organize the information and share it with the team.
  3. Measure — Connect trends with business objectives.
  4. Understand — Get insights from the information you’re receiving.
  5. Act — Make decisions to improve your product, service and customer experience.

CSAT

If you have a SaaS company or any kind of software company, you need to make sure the customers have a way to communicate with you.

In this communication, you need to think about what kind of user you want to open your lines of communication with, what kind of questions they should be answering and when they should do this.

The developers at itnig are trying to figure out what kind of features to focus on next to keep CSAT and NPS high.

To make sure your customers are happy, you should measure customer satisfaction rates (CSAT). You can rate it however you want, a normal way is by numbers, stars or faces with different expressions.

In SaaS products a good CSAT is 98 and above, and an acceptable score is 90. Everything else is bad. Because the customer usually is telling you what you’re doing wrong, it’s (usually) fairly easy to get a good score, just make sure you have a great customer service team, that’s key.

NPS

The juiciest part of the acronyms mentioned is Net Promoter Score (NPS).

It measures what kind of attitude your customer has towards your product. Only the 9th and the 10th best customers are promoters, which are the best customers you can hope for. These people will promote your product to people they meet. The neutrals in the middle, the 8th and the 7th, don’t do anything for you. And last, but not least, the detractors that represent the bottom 6 of your customer base. These people have a negative influence on your product or service.

To measure NPS you can use platforms such as Wootric, Delighted or Zendesk.

You don’t need to be a Mensa member to understand that getting a good score can be pretty hard, when 60 percent of the bar is detractors.

The formula is: NPS = % of promoters – % of detractors.

So if you have 20 percent promoters, 50 percent neutral, and 30 percent detractors, you’ll have -10 in NPS score, which is really bad.

Some NPS problems are simple to fix, you need to segment the customer base and try to solve as many of the recurring customer-issues as possible. Other NPS related challenges take longer time and need bigger and more drastic changes to fix. After segmenting the customers, you need to group the feedback into components of your product and service, and put your team to work on item after the other.

Companies that takes NPS scores seriously, aim at scores between 60 and 80.

https://upscri.be/285782-2

Listen, intensely and honestly

If you didn’t pick up that listening closely to your customer is extremely important, it’s time to note that done.

But listening and organizing the data isn’t enough alone. A customer that actually contacts you to give you feedback on your product or your service is valuable so make sure the people they speak to are understanding and empathic.

Don’t try to push other or cheaper products on a customer that contacts you about an issue. You have a valuable shot at solving important problems for your company, don’t ruin it by trying to sell them more stuff they don’t want.

To get any value from these processes, you need to share all the customer feedback with the team, not only to implement changes. You never know who might sit on solutions or ideas for improvement.

To get real life examples see the video above, where Jordi explains how Redbooth tackled some of their challenges with CSAT and NPS.


This post was transcribed by Sindre Hopland, media manager at itnig.

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O.

On sales leadership

These are some values that I learned that define a leader:

– A leader is somebody who reaches their goals and achieves beyond their individual abilities aligned with their own values and the organization’s values. A leader without a team is not a leader. A leader works for the team, not the other way around.

– Humbleness. Leaders must get to know themselves first, acknowledge their limitations. Acknowledge they have no recipe for success (no one does). They will succeed only by being curious and trying things faster, testing, changing things again, failing again, learning as fast as possible. In sales, everybody notices when things work well, success is measured in € vs budget. A leader must embrace results with no buts and take action to reach the goals.

– A leader works harder, a leader cares about the goals more than anybody else, they took full ownership of the goals. A leader does about anything to remove bottlenecks away on his team, they assist, train, support everybody, anything it takes. They are always the best resource for their team.

– A leader will always be available for everybody in their team, for personal and professional issues. They go the extra mile. They make sure everybody knows that. They earn the team’s trust.

– A leader makes everyone aware that teamwork is not negotiable. Without a cooperative team, there’s no leader. Lone wolves kill the growing/changing organization. Growth happens only WITH the team, not at their expense.

– Leaders communicate all the time, they don’t keep things to themselves, they are honest with their team. They share good and bad. They share the why’s. They trust their team. Trust precedes process and it is the only path to grow at a scale.

– Leaders learn fast and learn mostly from their team. The team has the most valuable knowledge a leader can get, it doesn’t come from books, blog posts, degrees or mentors. The team gets the real shit from the front line. A leader listens to their teams’ impressions and ideas, they explore them all and give feedback. Leaders generate a culture of idea generation and idea sharing. Leaders stay away from guru preaching.

– It’s important to understand people’s personal and professional ultimate goals and motivations. Leaders spend time asking them on their one on ones and they think about them. They write them down. Everybody is playing the movie of their lives, a leader must find out which one is it, they make sure each team member keeps being the hero of their movie.

– Leaders always lead by example, not by title. They show real bravery. Leaders go first to battle. They call leads and close customers. They apologize to customers when the company screws up. They take the shit first. They don’t leave anyone behind. They don’t show their rank, their status, their difference, their pedigree. Startups are flat meritocratic organizations. Leaders must understand well the company goals and they put them first, they are prepared to step down, or step aside, or leave the company at any moment if needed. Company goals are what matters most. Leaders show this to everyone. Company/collective oriented leaders always thrive.

– Leaders celebrate every victory. They visibly show the pain of every defeat. They take every opportunity to show they care. They analyze why/what/how and find out always changes to be made. Then they go and make the changes. They change anything or everything, but never keep on doing what doesn’t work. They shake the whole company inside out before/when goals are not met.

– Leaders set goals that are both ambitious and achievable. They work along the team to make sure they meet the goals. They are flexible when the goals are set wrong. They are implacable when goals are not met.

Most people will never be a leader. It takes time and patience, it takes survival skills, it takes real personal strength. But after committing to all these things, things start to work. Leaders are such when and only when they brought teams to make things work, nobody becomes a leader just by trying it. True leaders make sure they don’t leave the boat until things work (as they will work, ultimately!). They don’t leave the job undone.

– Bernat Farrero CEO at Itnig