It is common for us to create several different ways to analysing an indicator. With NPS, for sure, it would be no different.
Generally speaking, NPS is installed within the software, sent via email or SMS, and measured in a generic way. After some time, when the demands get a little more advanced and filters come in: we commonly look at the type of plan, customer success that takes care of the account, region, MRR, etc… the filters and forms of analysis are countless (and amazing).
But what we want to address here is another type of NPS analysis: by active contract time.
But at the end of the day, what is this?
First, let’s understand what this means: active contract time is how long your customer is active, how many months/years he is a customer (whether paying or not).
We like to analyze this indicator here in Anallytica because it gives us a vision of when, and in how much time, your customer base is satisfied and/or not, so, being able to generate an action on this, whether in product or processes.
For example: if we analyze the company “X” and its customers that are active from 1 to 12 months, we note that from the fourth to the sixth month the NPS drops from an average of 40~50 points to 0~20 and then back up to 30. We can see that the highest value delivered to customers is at the beginning of the software experience and delivery, but after a few months all this value is no longer seen, or for whatever reason (company / product / delivery) is no longer generating so much attractiveness for users to come back, indicate to friends, etc…
In this case, it is a fact that an active communication action needs to be initiated in the third month to prevent this fall from happening — starting always as a preventive work so it never turns reactive.
This also can be an example for cases where the NPS score is low in the first months. The user only starts to see value after some time. This gives us insights that:
- implementation was slow and costly;
- the product takes a long time to “heat”;
- the product is complex and difficult to understand:
- lack of communication as videos and supporting articles;
- there are few features that bring the initial experience in a better way.
All NPS analysis depends, of which issues you want to solve or attack. In this example above, we talked about long-term customer experience, focusing on an increase in LTV or even a reduction in early churns.
One thing does not invalidate the other
This type of analysis is one of the many ways we can look and analyze NPS. Segmented filters are great tools for insights to understand that, plan type A or B needs more attention, countries with a more direct culture need less human contact, or the other way around — Latin countries usually buy products from other people, which requires close, humanized service…
Data analysis is a passion we have at Anallytica and that we are taking to the world. Often data doesn’t tell us what we want to see, and to do that, studying and being close to your customers is critical, essential.
Normally the data only confirm our beliefs, which we have no way of “proving” to others. In this way, we prove with data, make the best and most right decision, avoiding walking with a compass inside a dark room!