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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T.

The new time and attendance law will kill innovation in Spain and Europe

Simple solutions or “one fits all” policies are easy to market by populist governments but they are sometimes at the expense of certain sectors and their people. This time the affected party is innovation and value added services, to a point that puts in jeopardy our (already weak) spot in the global competitiveness landscape.

I’ve always told my teams that I do not hire their time, but rather their talent and potential: their brains, their energy and passion and their willing to make a difference and impact our clients and the world through them. Innovative companies try to get in existing markets and solve things in complete different ways, some go as far as creating new markets from scratch. They all have in common that their mission is extremely hard, sometimes impossible (thus most fail along the way). The key for their success is how they manage to convince their teams that everything they do is not a job, but a religion. They are changing the world and that is something worth spending time and making history.

I can tell if somebody is motivated by their job by looking at their eyes while they talk about their challenges and ideas. Best people don’t work, they play. They make their challenges their hobbies. I’ve had many conversations at 1 am in the office, after some beers and sushi, before even realizing what time it is. Only when a job makes this kind of conditions happen, the wheel of significant value creation really stirs and great things come from it.

It is very hard to create a culture in which people feel so empowered that they are capable of anything. In my experience, it helps granting absolute flexibility. I don’t remember the last time I approved vacations to my team, or I paid attention to their schedules, or the days in which they worked from home or the office. This is not the kind of conversations I want to have with them. My relationship with my team is based on trust, and it is based on one single (often repetitive) conversation: how can we do more and better, how can we grow faster, how can we raise the bar. Little it matters to me whether they contribute to this questions from the beach in Canary Islands or spending many hours in the office.

However, the government today decided that it is a great idea in the 21th century that all companies like ours should make everybody clock in and clock out by law. I’m now obliged to add people’s time and attendance into our conversation. We now have to treat all jobs like production lines in factories (amidst the era of hyper automation and robotization). They go as far as having us registering accurate pauses for lunch. Unfortunately they don’t include how should we manage the time spent in the chill-out area, or when having long coffees in the outside terrace, or spending the afternoon in ping pong championships. Should we clock-in and clock-out every time we do that too?

When I travel I always get asked how is the Spanish ecosystem for entrepreneurship and innovation developing, I always defend our potential to become a leading actor in science and technology,  besides our current reputation for tapas, toros and siesta. We previously analysed the many initiatives taking place in the city of Barcelona. But my question is: is there anybody in the government actually helping us to make this happen?

The new law will come to place the next 12th of May. At Factorial we developed a free feature, so companies can instantly become compliant with the law. Interestingly enough, almost immediately after launching this feature people started developing tools using our API to automate clocking or connecting it with Slack and other interfaces. It looks like after all there will always be people willing to work on relevant things and not waste their energy in bureaucratic traps.

PD: You can find more information about the law in this article.