The Revenue Formula

NPS Sucks

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Net promoter score is terrible - it's become useless for SaaS. We discuss the problems with it, and how to fix it.

  • (00:00) - Introduction
  • (01:39) - The old framework: Net promoter score
  • (04:47) - The problem with NPS
  • (06:21) - It's self-correcting
  • (07:29) - A metric that can be gamed nicely
  • (09:35) - Promoter today, detractor tomorrow
  • (10:15) - A honeypot for promoters
  • (11:35) - Are the teams using it? And what is it needed for?
  • (11:56) - OK, NPS sucks. Now what?
  • (12:28) - If the focus is retention & satisfaction, listen here
  • (24:13) - For word of mouth - listen here

    • Also mentioned in this episode:
    • Earned Growth Rate from HBR
    • NPS isn't a leading indicator of churn from Gainsight

    PS: NPS was developed in the 90s by Bain & Co -- before SaaS really came around.

    ...more
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    The Revenue FormulaBy Toni Hohlbein & Raul Porojan
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