ROI Case File No.217 | 'The North American Startup's Soul Measurement'

Chapter 1: Behind Rapid Growth—Silent Customer Voices

The week following the resolution of TechFlow Asia's Value Chain optimization case, a serious consultation arrived from North America from a seemingly successful SaaS startup.

"Detective, our customer satisfaction surveys show positive results, yet our churn rate isn't improving. We're confused about what customers truly think."

CloudSync Solutions VP of Customer Success Sarah Johnson visited 221B Baker Street, unable to hide her confusion. In her hands were various customer satisfaction survey results and, in stark contrast, churn rate data.

"We are a startup providing cloud integration SaaS for small and medium enterprises. Both user numbers and revenue are growing steadily, and we receive high ratings in traditional satisfaction surveys."

CloudSync Solutions Business Overview: - Founded: 3 years ago (2022 establishment) - Customer companies: 2,800 - Monthly ARR: ¥1.2 billion (150% annual growth rate) - Employee count: 180 - Customer satisfaction survey: 4.2/5 (above industry average of 4.0)

The numbers certainly indicated a growth company. However, Sarah's expression held deep concerns.

"The problem is that while satisfaction surveys show good results, actual customer behavior is completely different. Churn rates aren't improving, and upselling isn't progressing as expected."

Disconnect Between Surface Satisfaction and Actual Behavior: - Customer satisfaction: 4.2/5 (seemingly positive) - Monthly churn rate: 8.5% (significantly above industry average of 5%) - Upsell rate: 12% (significantly below target of 30%) - Referral rate: 3% (significantly below industry average of 15%)

"What confuses us most is that 30% of customers who answered 'satisfied' in satisfaction surveys churn within 3 months. Numbers and actions don't align at all."

Chapter 2: Surface Smiles—Hidden True Feelings

"Ms. Sarah, could you tell us about the customer satisfaction surveys you currently conduct?"

Holmes inquired quietly.

Sarah answered while retrieving survey materials.

"We conduct standard 5-point scale satisfaction surveys monthly. General questions like 'Are you satisfied with the service?' and 'How is the support quality?'"

Current Satisfaction Survey Content: 1. "Overall service satisfaction?" (1-5 scale) 2. "Support quality?" (1-5 scale) 3. "Price reasonableness?" (1-5 scale) 4. "Feature completeness?" (1-5 scale) 5. "Overall evaluation?" (1-5 scale)

However, there was a serious disconnect between this survey and actual customer behavior.

Typical Contradiction Cases:

Customer A (Manufacturing, 50 employees): - Satisfaction survey response: 4.4/5 (high rating) - Response date: March 15 - Churn request: April 2 (18 days after survey) - Churn reason: "Other companies' services are more user-friendly"

Customer B (Retail, 30 employees): - Satisfaction survey response: 4.1/5 (good) - Response date: February 20 - Upsell proposal response: "Current status is sufficient" - Actual behavior: Started using competitor service in parallel

Customer C (Service industry, 80 employees): - Satisfaction survey response: 4.0/5 (average) - Response date: January 10 - Referral request response: "We'll consider it" - Actual behavior: No referrals made in 3 months

I focused on the contradiction between customer responses and actions.

"Customers answer positively in surveys but act completely opposite. This might indicate a disconnect between 'true feelings' and 'social responses.'"

Sarah sighed deeply.

"Exactly. We're hearing customers' 'words' but not their 'heart's voice.'"

Most Serious Case: Major Customer's Sudden Churn - Customer: Technology company (200 employees, ¥1.5 million monthly usage) - Satisfaction survey 1 week before churn: 4.3/5 (very high rating) - Churn reason: "CloudSync insufficient for long-term needs" - Post-churn interview: "Actually felt dissatisfied for half a year"

"We thought customers were 'satisfied,' but they might have simply lacked appropriate venues to express dissatisfaction."

Chapter 3: NPS Reveals Customer Voices—Visualizing Hidden Emotions

⬜️ ChatGPT | Catalyst of Ideas

"Numbers are just the tip of the iceberg. Listening to voices deep in customers' hearts is NPS's true value."

🟧 Claude | Alchemist of Narratives

"Unease lurking beneath the mask of satisfaction. Story tension emerges from the gap NPS reveals."

🟦 Gemini | Compass of Reason

"Recommendation likelihood isn't just an indicator. It's also a warning bell that foresees future churn rates."

The three members began their analysis. Gemini developed the "NPS (Net Promoter Score) Analysis" framework on the whiteboard.

NPS Analysis Structure: - Promoters: 9-10 points (active recommendation) - Passives: 7-8 points (passive satisfaction) - Detractors: 0-6 points (dissatisfaction/critical) - NPS = Promoters% - Detractors%

"Ms. Sarah, let's conduct an NPS survey of all CloudSync customers. Ask 'How likely are you to recommend CloudSync to other companies?' on a 10-point scale."

CloudSync NPS Survey Results (2,800 companies surveyed):

Response Distribution: - Promoters (9-10 points): 420 companies (15%) - Passives (7-8 points): 1,400 companies (50%) - Detractors (0-6 points): 980 companies (35%)

Calculation Result: - NPS = 15% - 35% = -20 (significantly below industry average of +25)

Sarah was stunned.

"While satisfaction surveys showed 4.2/5, NPS resulted in -20."

Even more serious were the detailed NPS analysis results.

Behavioral Analysis by NPS Segment:

Promoters (15%, 420 companies): - Churn rate: 3% annually (very low) - Upsell success rate: 85% (very high) - Referral performance: 2.3 cases per company annually - Actual behavior: Consistent with survey results

Passives (50%, 1,400 companies): - Churn rate: 12% annually (high) - Upsell success rate: 8% (extremely low) - Referral performance: 0.1 cases per company annually (nearly zero) - Characteristic: High satisfaction survey ratings but low recommendation intent

Detractors (35%, 980 companies): - Churn rate: 28% annually (extremely high) - Upsell success rate: 1% (nonexistent) - Referral performance: -0.3 cases per company annually (negative word-of-mouth) - Characteristic: Low satisfaction survey ratings and critical in NPS

Claude reported an important discovery.

"This is shocking. 85% of CloudSync customers consider it 'not worth recommending.' Customer true feelings invisible in satisfaction surveys have been revealed."

NPS-Based Customer Psychology Deep Dive:

Passives (50%) True Feelings Interview:

"CloudSync isn't bad, but I wouldn't call it particularly good either" (Manufacturing CEO)

"Not compelling enough to actively recommend to others. Just ordinary service" (Retail IT Manager)

"No complaints, but no excitement either. Would consider alternatives" (Service Industry Director)

Detractors (35%) Detailed Dissatisfaction:

"Features are sufficient but operations too complex for staff to learn" (Construction Company President)

"Support is polite but doesn't reach fundamental problem resolution" (Medical Institution Administrator)

"Don't feel value matching the price. Poor cost-performance" (Consulting Representative)

Most Important Discovery: Structural Problems with Satisfaction Surveys

Traditional satisfaction surveys failed to distinguish between "no dissatisfaction" and "actively want to recommend." NPS revealed four distinct customer layers:

1. True Satisfaction Customers (15%): Promoters
2. Passive Continuation Customers (50%): Passives
3. Potential Churn Customers (35%): Detractors
4. Non-Response Customers (70% response rate): Unknown

Chapter 4: Breaking Customer Silence—Collecting and Analyzing True Feelings

Detailed NPS analysis and additional interview surveys revealed the true structure of CloudSync's customer satisfaction problems.

Customer Satisfaction Reality Through NPS Analysis:

Satisfaction Survey vs. NPS Comparison:

Satisfaction Survey Problems: - Misinterpreting "no dissatisfaction" = "satisfaction" - No relative evaluation (no comparison with other companies) - Low predictive power for future behavior - Many socially desirable responses

NPS Advantages: - Measures recommendation intent = true satisfaction - Evaluation premised on comparison with others - High predictive power for future behavior (churn/upsell) - Question design that draws out genuine feelings

Customer Segment Detailed Analysis:

Promoters (15%) Success Factor Analysis: - Industry characteristics: 70% technology-related companies - Usage patterns: Actively utilize advanced features - Success experience: 30%+ business efficiency improvement through CloudSync - Common traits: Proactive about digitization, unafraid of change

Passives (50%) Psychological Structure: - Current satisfaction but future anxiety: "Is this really okay?" - Interest in competitor information: Constantly checking competitive services - High price sensitivity: "If there's a cheaper service..." - No recommendation reasons: "Can't think of particularly good points"

Detractors (35%) Dissatisfaction Structure: - Feature dissatisfaction: 40% (usability, performance) - Support dissatisfaction: 30% (response speed, resolution capability) - Price dissatisfaction: 20% (cost-effectiveness) - Other: 10% (contract terms, reliability)

Industry Benchmark Comparison:

Industry Leading Company (NPS +45): - Promoters: 55% - Passives: 35% - Detractors: 10% - Characteristic: Majority of customers actively recommend

Industry Average Company (NPS +25): - Promoters: 40% - Passives: 45% - Detractors: 15%

CloudSync (NPS -20): - Promoters: 15% - Passives: 50% - Detractors: 35% - Problem: Bottom-tier customer satisfaction in industry

Financial Impact Analysis: - Promoters' annual revenue contribution: ¥2.4 million per company - Passives' annual revenue contribution: ¥1.8 million per company - Detractors' annual revenue contribution: ¥1.2 million per company - Correlation: 10-point NPS improvement = +15% annual revenue

Sarah showed a serious expression.

"We were only seeing customers' 'surface.' 85% of customers didn't want to recommend our service..."

Chapter 5: Detective's NPS Diagnosis—The Soul's Measurement

Holmes compiled the comprehensive analysis.

"Ms. Sarah, NPS's essence is measuring 'customer true feelings.' While satisfaction surveys ask 'Do you meet minimum requirements?' NPS asks 'Do you want to wholeheartedly recommend?' - the soul's voice."

NPS Improvement Customer Satisfaction Revolution Plan:

Phase 1: Emergency Response to Detractors (3 months)

Detractor (35%, 980 companies) Dissatisfaction Resolution:

Feature Improvements (40% dissatisfaction factor): - Complete UI/UX overhaul: 70% usability improvement - Performance improvement: 50% processing speed increase - Intuitive operation realization: Usable without training

Support Enhancement (30% dissatisfaction factor): - 24-hour support system construction - Direct response by specialist engineers - 50% problem resolution time reduction

Price-Value Enhancement (20% dissatisfaction factor): - Feature-based plan segmentation - Pay-per-use model introduction - ROI visualization tool provision

Phase 2: Converting Passives to Promoters (6 months)

Passive (50%, 1,400 companies) Psychological Transformation:

Creating Emotional Experiences: - Individual consulting services - Concrete business efficiency improvement results presentation - Success story sharing and best practice provision

Clarifying Competitive Advantages: - Feature comparison materials with competitors - Articulating CloudSync's unique value - Opportunities to experience differentiation factors

Continuous Value Provision: - Regular new feature delivery - Industry trend report distribution - Expert webinar hosting

Phase 3: Promoter Expansion and Reproduction (Ongoing)

Promoter (15%, 420 companies) Utilization:

Referral Program Enhancement: - Significant referral incentive improvements - Easy-to-use referral tools - Success-based referral system

Case Study Development: - Detailed success story analysis - Applicability verification for other companies - Industry-specific best practice collections

Continuous NPS Monitoring System: - Monthly NPS measurement and trend analysis - Segment-specific improvement initiative execution - Predictive churn prevention system construction

Goal Setting: - 12-month NPS target: -20 → +30 (50-point improvement) - Promoter ratio: 15% → 45% (triple increase) - Churn rate: 8.5% → 3.5% (less than half)

"NPS isn't just an indicator. It's a measure for hearing customers' soul voices. Sincerely responding to those voices leads to true customer satisfaction."

Chapter 6: Transformation That Resonates with Customer Hearts—Revival of Soul Measurement

Twelve months later, a report arrived from CloudSync Solutions.

Customer Satisfaction Revolution Results Through NPS Improvement:

Dramatic NPS Improvement: - NPS: -20 → +38 (58-point improvement, exceeding target) - Promoter ratio: 15% → 48% (3.2x increase) - Passive ratio: 50% → 38% (shift to promoters) - Detractor ratio: 35% → 14% (less than half)

Fundamental Customer Behavior Changes: - Monthly churn rate: 8.5% → 2.8% (industry-leading level) - Upsell success rate: 12% → 42% (3.5x improvement) - Referral rate: 3% → 28% (1.9x industry average) - Contract duration: Average 14 months → Average 28 months (doubled)

Segment-Specific Improvement Results:

Former Detractors (980 companies) Changes: - 75% improved to passive or better - Feature satisfaction: 2.1/5 → 4.3/5 - Support satisfaction: 2.3/5 → 4.6/5 - Price satisfaction: 2.0/5 → 4.1/5

Former Passives (1,400 companies) Changes: - 60% converted to promoters - Clear "reasons to recommend to others" - Active feature usage: +180% increase - Improved internal company evaluation

Promoter Expansion (420→1,344 companies): - 85% of new promoters converted from passives - Annual referrals per company: 2.3 → 3.8 cases - Diversified and specific recommendation reasons

Direct Business Impact: - Annual revenue: ¥12 billion → ¥18 billion (50% increase) - Customer LTV: Average ¥3.4 million → Average ¥6.8 million (doubled) - New customer acquisition cost: 30% reduction through increased referrals - Operating profit margin: 15% → 28% (efficiency through customer satisfaction improvement)

Organizational and Cultural Transformation: - Company-wide NPS awareness penetration - Culture of listening to customer true feelings established - Shift from surface satisfaction to true value creation - Employee satisfaction: +35% improvement (sense of customer satisfaction improvement)

Industry Position Enhancement: - Industry NPS ranking: Bottom tier → 3rd place - Customer recommendation rate: Significantly above industry average - Brand value: +150% improvement

Sarah's letter contained deep emotion and learning:

"Through NPS analysis, we could hear customers' 'soul voices.' Learning the true feelings hidden behind surface smiles and beneath superficial satisfaction enabled us to achieve true customer satisfaction. Most importantly, we understood that 'no dissatisfaction' and 'actively wanting to recommend' are completely different dimensions. Now customers genuinely love our service and proudly recommend us to other companies."

Detective's Perspective—Technology for Hearing Customer Heart Voices

That night, reflecting on the case, I pondered.

CloudSync Solutions' case vividly demonstrated the "satisfaction illusion" that modern companies often fall into. Surface satisfaction surveys don't reveal customer true feelings. True satisfaction appears in the form of recommendation intent.

NPS's true value lies in drawing out genuine feelings from customers' hearts. The question "Would you recommend this service to someone important to you?" eliminates surface social pleasantries and reveals customers' true emotions.

Particularly important was the difference between "no dissatisfaction" and "having excitement." Many companies settle for the former, but true competitive advantage emerges from the latter. Services that customers wholeheartedly want to recommend become the foundation for sustainable growth.

"The essence of customer satisfaction is lighting a fire in customers' hearts."

As the seventh case in Volume XVI "Quest for Agility," CloudSync's case provided important insights. Agility is also the ability to sensitively detect customer true feelings and rapidly execute improvements that respond to them.

"Customer true feelings cannot be heard through surface questions. Only with NPS, the soul's measurement, can true customer satisfaction be measured. And responding to those voices becomes a company's true value."—From the Detective's Notes