Posted on

Customers Go First — How To Improve Your Customer Satisfaction Score and Net Promoter Score

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.

Posted on

Should We Leave Spanish Behind In The Tech Community?

World Economic Forum recently published an article that Lisbon was aimingat becoming the next unexpected tech hub in Europe, just like Ireland has become the last decade.

Lisbon is a great city with an increasing number of tech startups, now hosting the Web Summit, and the government recently made an investment fund of 200 million for early growth companies. All of this is great, but they’re missing something Ireland had all along. English.

Barcelona is way ahead of Lisbon in becoming the leading European tech hub along the Mediterranean. We’re talking in amount of VC’s, accumulated investment, amount of startups, accelerators, incubators, I could go on for a while.

But like up and coming Lisbon, Barcelona is also missing one vital element.

  • English.

Boosting the expat community

It’s not that people in Barcelona in general are lacking English skills. As a person that’s learning Spanish, I think people’s skills generally are too good, it makes me learn the local language much slower.

It’s more about the willingness to adopt all the great activity in the tech ecosystem from Spanish to English.

There’s too many interesting events and meetups around Barcelona that are done in Spanish. And there’s too many expats, digital nomads and visitors that aren’t able to attend.

The more active people, the stronger an ecosystem is, and if we want Spain and Barcelona to grow one of the strongest communities in Europe, we need everyone we can get our hands on.

Barcelona is already attracting a lot of talent from abroad, but I’m sure more people would set up shop if they knew they could survive with only English, everything to make the transition easier.

An old man’s problem

Before writing this article I talked with many local entrepreneurs and developers in Barcelona. I was a bit hesitant to ask them the question, I don’t want to come as a guest, asking them to abandon their language.

But everybody I talked to agreed. Spanish is great, but the tech community would benefit from being solely in English.

The people I spoke to were young people, and I think I would get another answer from some of the older generations of entrepreneurs, which unfortunately is where the power often lies as well.

At itnig we’re many Spanish people, and the lunch chat is usually conducted in Spanish. But all of our events, media and content are in English, and all of our employees can at any time switch over to English.

That’s why many of our recent hires has been people from outside Spain: Lithuania, England, Germany, Italy, Norway, etc.

Far from a Spanish thing

Before writing this post, I was aware that this is a topic you either agree or disagree with. You hate it or like it.

Either way, I think it’s important to know that this is not a Spanish challenge (if it is a challenge at all), it’s a concern all entrepreneurs living outside an english speaking country should address, at least consider.

Both Berlin and Paris are thriving startup hubs in Europe, and their tech communities are growing rapidly, despite German and French being the main language. But Barcelona (and many other cities) doesn’t have the privilege of being financial and economic centers in Europe, and to speed up the development of the current ecosystem, a common language might be helpful.

According to EDCi (European Digital City Index) Stockholm and Copenhagen ranks as the 2nd & 7th best cities on the continent.

If you research some of their biggest startup communities like #CPHFTW in Copenhagen, or SUP46 in Stockholm, they’re all communicating in English, making it super easy for all kinds of people to join in.

Amsterdam and Helsinki are the 3rd and 4th countries on ranking. All of these countries are known for good english skills, the EDCi even lists it as a criteria for ranking so high.

Small, but necessary step

Many would probably argue that there’s other more important things to change or improve to boost Spain and Barcelona as a tech friendly environment, than increasing English as a working language.

  • Friendlier tax regulations would certainly help.
  • More access to venture capital would be fantastic.
  • And for more established tech companies relocating to the city could also be great.

My idle theory is that a broader use of English could make all of the above happen faster.

Huge tech companies would be more likely to relocate if they knew they could operate in English.

This again would stimulate the ecosystem, and more VC’s would open their eyes to Spain, and know that they could operate deep in the community without worrying about language.

And in the end, if key tech players together with an increasing amount of VC’s establish themselves in the country, the authorities would eventually follow and adapt.

A Spanish ecosystem where English is the main community language wouldn’t fix everything, it’s always a work in progress, but it’s about putting up the right domino so all the others follow.

Do you have NO national pride??

Please, I understand that you’re proud of the Spanish and Catalan languages, they are beautiful, complex and huge – bigger than English.

If Spanish was the spoken language by Silicon Valley companies, and most tech hubs around the world, my argument would be different, but right now all are more or less done in English.

I would never want anyone to stop speaking Spanish to their friends and family. Like I’ll never stop speaking Norwegian with my friends.

But it’s about breaking down barriers for business, including people in the ecosystem and making it easier for both tech giants and small startups to relocate to beautiful Spain.

I think it’s a matter of time, but why not speed it up?

Posted on

Why you should aim UX/UI design at zombies

I’m faced with a design challenge everyday. Sweet! I like it. It’s fun and rewarding to find a solution, if that’s your thing. Like working on a puzzle: finding all the pieces, recognizing what’s their right position, joining them one by one, and finalizing with a composition that only makes sense when everything is together.

That being said, the pieces of the puzzle don’t have a clear shape or color, and a lot is left to analysis, and interpretation. And you don’t even have a reference of how the puzzle is supposed to look like.

Probably is not like putting a puzzle together at all. Whatever. Never mind.

Zie zombies

And who is the target? Who is going to end up looking at that puzzle — or whatever that is — that a UXUI Designer put together? You are. We are. The idle minded. Because that’s what we — the users — are in the end. Our brains are too busy thinking on what we’re going to have for dinner, where, with who, or if we will have take away on our own again. So when we grab the phone, open the browser, grab the TV remote, we’re not actively thinking. Content. That’s what we want.

When I first heard about this, the fact that users don’t think, I felt disappointed on human intelligence. But after all, one of the must-read books for product designers is called “Don’t make me think”. Like it or not. We are contributing to feed a whole generation of Zombies. Users are zombies.

If you think about it, makes a lot of sense.

They move in big groups, without a clear objective, relying on automatisms and muscular memory, reacting slowly, and paying little or no attention to their surroundings.

Full attention, not necessary

Now, I am not saying that people are zombies. My point is that users are multitasking most of the time they spend in front of their devices. We eat sandwiches, drink coffee, walk around the city, talk to our friends, and listen to music. We even dare to think of more important stuff! Because using an app shouldn’t be cumbersome. After all it’s just a tool. The meanings to an end. And although some tools are far more complicated than others, once we learn to use them we don’t actively read any buttons or labels anymore. We knowwhere everything is. And when something changes we hate it, because it makes us think and reroute our wirings.

When I started designing websites, which would lead to designing software and interfaces, nobody told me psychology would play such a big role. Yet, we don’t get to play with full functioning brains most of the time, we have to make what we can out of 20% of the user’s attention — Yes, I made that number up.

Your users won’t be reading half of the labels, nor what the buttons say. They will type in what they consider that should be typed in, wherever they consider its supposed to be. And they will click that big chunk of color that looks like a button, and will always click and tap on the image, not the text. To make that easy, the design has to avoid possible distractions.

In order to make a user interface work, we have to strip it out of all the unnecessary. Here’s an example.

Keeping it simple, visually

A while ago, I work on a project at Asana. We called it Typography Update. During the redesign many hands touched the interface, and many engineers worked on the CSS. The result was great. But part of the collateral damage of having so many moving parts were little mismatches on font sizes, colors, and spacing.

So I went on and reduced the number of styles, fixed inconsistencies, and adjusted the margins. I reduced and standardize the body size, the paragraphs, and their line-height. Headings had the same exact style now, in a couple of different sizes for hierarchy. Project names became tokens almost everywhere. Margins became consistent around the objects, and relative to object their size. And different shades of gray for copy were reduced to only two, based on the contrast ratio with the background.

When I showed the first results to the product manager she couldn’t see the actual changes. She asked “How did you do that? You didn’t change anything and it looks way better!”. The multiple styles and little inconsistencies had been adding noise and clutter. Imperceptible. Little by little. Too many instruments going for a solo at the same time. We were making the brain work overtime, and forcing it to think. Not a lot. But more than what was necessary.

The voices in our heads

Why was this design more effective and harmonious?

Each different style is a new voice you add to the chorus that is the interface. Restricting the number of those will make things easier to process for the user, since they won’t have to register yet another voice in their head. A bunch of small disruptions will cause havoc in their visual field. But restrict it too much, and all the voices will be the same.

My advice then? When adding styles, make them dramatically different. Go from 10 to 14, from blue to black, from regular to bold. It either is really different, or it’s the same. Because zombies can tell a human from a deer apart. But all human are the same to them: just food.

We are idle minded, our list of priorities is to get what we want, not to understand how we are getting it. We are — and want to keep being — idle minded.

So when building a tool, design something that a zombie could use. That is good product design.

Posted on

How I Got Hired & Ditched By UBER

This is not a picture of me.

There is a lack of engineers everywhere, but finding talent is especially hard in the Bay Area.

I’m from Spain but 5 years ago I went three months to SF, to attend a couple of conferences and visited some friends.
At that time I was trying to start something, but I changed my mind and I started looking for jobs in the US instead.

Getting in contact

Every single company I visited was recruiting.

Tech companies provided pizza, beers and tons of famous, smart people to talk about smart things. All to attract talent.

I sent out many resumes, but 90% of the times I didn’t receive any response, and I couldn’t figure out what was missing.

I have a CS degree, five years of experience and lots of open source contributions in cutting edge technologies. My best guess was that US companies were not willing to sponsor me a `H-1B` visa.

I was close to giving up and going back to Spain when I received two calls from a couple of companies. One of them was Klout, the social media analytics company that sold for $200 million. The second call was from a company that was just starting up at the time, they wanted to disrupt the transportation industry.

The interviews

The first interviews are always done by telephone. They ask you about your background, some theoretical questions and some *puzzles*.

When they have decided that you’re smart enough to meet face to face, the real interview starts, and it’s not a normal meet and greet, it can last up to three hours.

You talk with people from different departments, answer more questions and solve more *puzzles* on whiteboards.

– Implement a function that calculates square roots
 — Sort and concat arrays in a optimal way
 — Guess the two missing numbers in a array with `n — 2` length containing `1..n` unsorted numbers
 — Calculate the number of digits for a given number
 — Implement a function to detect palindromes
 — …

Most of them were doable, but I think they were missing some amazing developers that may not know how to solve those problems,
but they are capable of solving real-life problems (fix this bug, port this library, refactor this code…).

Some of the theoretical questions I had (mostly javascript related):

– What is a closure and which disadvantages does it have:
 — What is hoisting.
 — How does `this` work.
 — How `float` works and which issues does it have.
 — How does the event loop work on the browser and how to delay a function to the next tick.
 — How to optimize CSS, and how does specificity work.

The offers

Both companies I interviewed for offered to sponsor me a H-1B visa and a good salary.


I ended up accepting one of the offers because they where more transparent with the stock options (which I later discovered not to be so great after all), and because they told me that I could work remotely until getting the visa.

I signed the contract, opened a bank account, left my job and came back to Spain.

The silence

Back in Spain I started to prepare myself for the new job — I was looking forward joining a new team. I learnt Python because I saw some people using it at that company’s offices.

I was super motivated and willing to start! I even sent some emails to the CTO to get some instructions on how to setup my development environment.

At my starting date I received the first email from the CTO saying that they were not able to get my visa and that they were thinking about the aspect of working remotely.

I answered them that it wasn’t a problem for me. I had been working remotely for a while and it had never been an issue.

What happened next? Nothing. Silence. I was completely ignored.

The problem

Getting a working visa in the US is not easy. If it was, most developers would be working there. It has gotten a lot better the last years, but companies should start to be more open minded about hiring remote workers.

There is a huge deficit of talent in the US, and a lot of wasted (and way cheaper) talent in other countries around the world. An average engineer in the Bay Area can cost around $100k+. In Spain, the same engineer costs significantly less.

Even though I’m happy I didn’t end up in the states, it would have been cool to be one of the first developers at Uber.

The solution

Ironically, while I was on holiday in San Francisco I was working for [Teambox](now Redbooth), a company with their development team based in Spain.

It was an amazing experience, the development was happening 24 hours a day. The git repository was constantly receiving commits, never sleeping.

It was a great time, that I now look back on as me and Jordi Romero are working on our new project Factorial.

Luckily there’s more and more great companies being built in Europe, and there’s no need to go to the US to land a fantastic job as a developer. Both Madrid (14th) and Barcelona (9th)are climbing on EDCI’s digital city index list every year, and more and more startups are getting funded.

A recent report by Atomico predicts even greater times for European tech in the years to come, so no need to apply for the green card lottery this year, just hold on to your European passport.

This memoir was written by the CTO of Factorial.

Posted on

The 4 Biggest Accounting Mistakes Startups Do

Startups have different business models, but all of them are in a situation where budgets are tight. In other words, accounting turns into a very important element.

Hopefully these tips will help you take better business decisions, as the flow of income and expenses are something all entrepreneurs should worry about.

To keep your startups accounting updated and well-organized at all times is a hard job, and that’s why there’s a lot of mistakes young companies often do.

Use a professional accountant

The first mistake startups often do because due to lack of experience, is to not hire a professional accountant.

A startup must know, at all times, its liquidity; How much money it owes to its suppliers, and the bills that haven’t been collected yet. It must also know the average of days that the customers take to pay, and detect those customers who are slow payers.

Being helped by a person with deep accounting knowledge will allow you to know the condition of the income statement, showing how the business is performing.

Many startups don’t see the value a professional accountant can add to the business. Apart from the actual accounting, it’s a person who can help them to develop their business, offering some advice about tax benefits, incentives and about corporate constitutions, etc.

Apart from being helped by a professional accountant, startups can use invoicing programs to make many of their daily tasks easier and better. These tools will allow them to control their business activity.

Lack of income and expenses control

We often encounter startups that doesn’t have records of their income nor of their expenses.

As soon as you get your first paying users or clients you will have to save a copy of each operation made between you and the customer.

Having full control over all expenses can be challenging and frustrating.

To make it easier, a good way to organize it, is to order it chronologically (monthly), or in alphabetical order by the clients name.

As you’re organizing the payments, it’s just as necessary to organize all the expenses. You should divide them into categories, for example: offices expenses, stock acquisitions, supplies, insurance, taxes, etc.

Small expenses become big expenses

When every penny counts it’s easy to not register the tiny expenses, they seem so small, and everything would look better if you just kept them off the balance sheet.

This is a big mistake because you’ll lose the the right to deduct taxes from these expenses.

This means that each team-member in the company needs to write down all their expenses, including the teeny-tiny ones.

Just as your grandma tells you to save your cents as a child; “because enough cents will in the end make a dollar”, it’s the same with companies. There’s a lot of small expenses, and as the team grows, all people accumulated small expenses becomes significant.

However, remember that personal expenses never should be mixed with business expenses. This is one of the biggest reasons why companies get an unpleasant visit from the tax authorities.

TAX

This might seem obvious to most of you, but working closely with startups and their accounting, remembering to pay taxes is a bigger issue than you might think.

Any business activity is subjected to taxes, and startups and entrepreneurs, just like any other business needs to present different types of fiscal statements to the tax authorities, like VAT, PIT, corporation tax, etc.

Remember, that as an entrepreneurs you can deduct money from your personal taxes, when you every three months have to present the different tax models mentioned above.

It is also recommended to save a copy of your tax declaration (ordered by chronological order, every 3 months and every year), as well as a registry of the taxes that you have paid and what tax authorities has paid you back.