"The Power of Surrounding Yourself with the Right People"

"The Power of Surrounding Yourself with the Right People"

Have you found Net Promoter Score (NPS) surveys helpful in building products? NPS is like a compass — it’s directional. NPS doesn’t present a complete story. The fact that only 31% found NPS helpful doesn’t surprise me. I realized that NPS takes on almost mythical status as a “single source of truth” within some organizations because it presents a single number. It appears to be quantitative data, but it’s not. It’s a numerical representation of qualitative data.

I execute surveys to capture who the customer is and how to think about them — by demographics, competitive product usage, entertainment preferences, etc. NPS is one tool in this survey toolkit. At Netflix, we collected NPS data but rarely looked at it. We had a much better proxy metric for product quality— the percentage of members who canceled each month. Monthly customer retention is a much better proxy metric for product quality than NPS. It measures what customers do, not what they say.

At Chegg, we executed an NPS survey in 2010, and the NPS was 60, which is very good for a startup. Another fun fact: Netflix used NPS when the service launched in South America, and the score was very high. So they were surprised when they had poor retention during their first few months. It turns out that Brazilians are very generous “graders” (while folks in Australia and Germany are stingy with their 9’s and 10’s).

NPS provides an easy-to-understand signal to me, and the “What’s good?/What could be better?” verbatims are incredibly helpful. Another note: all of the data sources— with the possible exception of NPS— are gameable. If I aggressively ask readers for more “hearts,” for instance, I get more of them. The “Project v. Outcome-based Roadmaps” essay tops most of the data points I listed, and the qualitative from the NPS survey gives me a strong sense of “Why?” The importance of stories and examples to bring ideas to life. And if there’s a small sample, NPS is really noisy — both high and low. So when I get a high or a low NPS score, I have to nicely remind myself, “It’s just a number,” as I dig into the qualitative to form hypotheses for my next experiment. “Axiomatically, if you have high NPS, you love NPS.”

"The Five Chimps Theory" provides an interesting perspective on personal growth. It suggests that in zoology, you can predict the mood and behavior of one chimp by observing which five chimps they hang out with the most. Similarly, Jim Rohn said that you are the average of the five people you spend the most time with. So this idea tells us that if we want to grow as a person, we should be mindful of who we are hanging around with.

Success gurus tell us that we should discard these people if they are toxic and if their life values are not aligned with ours. However, I have decided not to listen to the experts this time. I do not mean giving up on my dreams, but more like continuing on this journey WITHOUT giving up on those close to me that, for whatever reason, decided that life is just fine the way it is. They can make their own conclusions as to where they fall in.

When we combine these two concepts, we can gain a deeper understanding of personal growth and building successful products. Just as NPS is a tool in the survey toolkit, the people we surround ourselves with are tools in our personal growth toolkit. We need a variety of perspectives and influences to shape who we become and the products we create.

Both NPS and the Five Chimps Theory emphasize the importance of understanding the underlying motivations and behaviors. NPS provides a numerical representation of qualitative data, while the Five Chimps Theory reminds us of the impact our environment has on us. By combining these ideas, we can enhance our ability to build successful products and foster personal growth.

So, what actionable advice can we derive from these concepts?

1. Diversify your feedback sources: While NPS can be a helpful tool, don't rely on it as the sole measure of product quality. Look at other metrics like customer retention to gain a more comprehensive understanding. Similarly, surround yourself with a diverse group of people who can offer different perspectives and insights. This will help you make more informed decisions and drive personal growth.

2. Dig deeper into qualitative data: When analyzing NPS scores or evaluating the people you surround yourself with, don't just focus on the numbers or surface-level observations. Take the time to delve into the qualitative data and understand the underlying motivations and behaviors. This will enable you to form hypotheses and make more strategic choices.

3. Embrace the power of stories and examples: NPS surveys provide verbatim responses that can be incredibly helpful in understanding customer sentiment. Similarly, the stories and examples shared by the people you surround yourself with can bring ideas to life and offer valuable lessons. Pay attention to these narratives and use them as inspiration and guidance in your product development and personal growth journeys.

In conclusion, the Net Promoter Score and the Five Chimps Theory offer unique insights into building successful products and personal growth. By diversifying our feedback sources, digging deeper into qualitative data, and embracing the power of stories and examples, we can navigate these realms with greater clarity and effectiveness. So, let's harness the wisdom of these concepts and continue on our paths of growth and innovation.