A Net Promoter Score (NPS) survey consists of a single question that measures the likelihood of your customers referring your business to their others. It is an indicator of customer experience, customer loyalty, customer satisfaction, and brand loyalty. The responses of the NPS survey are used to generate a score ranging from -100 to 100.
As Bill Gates once said, “Your most unhappy customers are your greatest source of learning,” illuminating the timeless essence of customer satisfaction. The Net Promoter Score (NPS) is a powerful tool beyond conventional customer satisfaction surveys.
While the fundamental goal of business remains unchanged, the ways to measure and enhance customer satisfaction have evolved.
When was the last time you liked a brand so much that you recommended it to your friend and wanted them to try it? If you have ever done so, you understand the basic principle of Net Promoter Score (NPS), which measures customer satisfaction and loyalty.
It tests if someone likes your brand, organization, products, or services and recommends it to their family, friends, and colleagues. With the digital world transforming daily, getting in touch with more prospective and existing customers has become extremely convenient.
The NPS score is a powerful tool used to classify customers and help businesses improve their experience.
Typical NPS surveys consist of just one question.
Considering your complete experience with our company, how likely would you be to recommend us to your friend or colleague?
The answer options are arranged horizontally on a scale of 0-10.
Based on the promoter score, the customers fall into one of the 3 categories.
Promoters: Customers who rate 9 or 10 and are happy with your services. They are loyal enthusiasts and might prove to be evangelists for your business growth. They are extremely likely to recommend your company to people in their social or professional circles.
Passives: Customers who rate 7 or 8 and have average experience with your company. They are satisfied with your services but might switch to your competitors if given an opportunity. They have a neutral stand - they won't spread negative word-of-mouth but won't promote your brand either.
Detractor: Customers who rate below 6 and are not happy with your product or service. They share their bad experiences with others and damage the company's reputation. They would not like to repurchase your product or service and would discourage others too.
NPS is not just a number; it's a window into customer loyalty and satisfaction. A good NPS reveals that you have more Promoters than Detractors. But what is a "good" NPS score? It's all about context.
A positive NPS is generally considered "good." An NPS above 50 is considered "excellent," and anything above 70 is indeed "world-class." The stronger your NPS, the more organic growth your business is likely to experience.
You can calculate your NPS by subtracting the percentage of detractors from the percentage of promoters.
To calculate the number of promoters, subtract the count of passives and detractors from the total number of respondents.
To start with, the customers or consumers are asked to rate their chances to recommend an organization or a business to their family, friends or colleagues on a 0-10 point scale. The customer has to choose one number between 0-10 (where 0 is the lowest and 10 is the highest)
Based on the number chosen on the scale, the customer is then classified as Detractors, Passives, and Promoters.
Consider a coffeehouse that wants to calculate the Net Promoter Score of its store. The results will give them insights into customer experience and how likely their customers are to refer their coffee shop to others.
Assuming they asked NPS questions to their 100 customers, 40 rated their products and services 9, 20 rated 10, 20 rated 7, 10 rated 8, and 10 customers rated 6 or below.
So, the categorization of the customers is as below.
Promoters = 40 + 20 (Rating 9 and above)
Passives = 20 + 20 (Rating 7-8)
Detractors = 10 (Rating 6 and below)
The coffeehouse company can use the NPS score to connect with the passives and detractors to learn more about their concerns. They can work on the improvement areas and make sure their loyal customers have a great experience. Loyal customer feedback will help them prioritize resources and gain insights into what matters most to them.
Let's say the passive and detractors customers feel that the store needs to have better lighting and chairs. Thus, these data points are driving the NPS score.
A key driver analysis will help the coffeehouse understand its target audience better and what approach it should take for different segments of customers.
Now, you might wonder, is 70% a good NPS score? To answer this, we need to dive into industry benchmarks.
Understanding that NPS standards can vary by region and sector is crucial. Factors like cultural and demographic differences affect customer ratings. Instead of fixating on a single "good" score, focus on trends and improvements over time.
NPS is incredibly versatile. It's not confined to your customer base. You can use it to survey employees and measure their satisfaction and loyalty. For employees, a high NPS means satisfied, engaged, and loyal team members who are likely to stay and recommend your organization.
To consistently achieve a good NPS score, follow these steps:
Ask the Right Questions
Begin with a clear and concise NPS question. Ensure it aligns with your business goals and objectives. Keep the question simple and focused: "On a scale of 0 to 10, how likely are you to recommend our product/service to a friend or colleague?"
Regularly Survey Your Customers
Don't rely on a one-time survey. Implement regular NPS surveys to gauge evolving customer sentiments. Track changes and identify trends to make necessary adjustments.
Classify the feedback you receive into Detractors, Passives, and Promoters. This segmentation provides a clear picture of where your strengths and weaknesses lie.
Pay close attention to Detractors. Their feedback can uncover issues that may be hindering growth. Contact Detractors and engage with them to address their concerns and potentially convert them into Promoters.
Promoters are your brand advocates. Capitalize on their enthusiasm to help spread positive word-of-mouth about your business. Consider referral programs to reward them.
Use NPS as a source of valuable insights. Regularly analyze the feedback to identify trends and areas that need improvement. Implement changes based on customer feedback to enhance their experience.
Benchmark and Compare
Compare your NPS against industry benchmarks and your previous scores. This provides context and helps you understand where your business stands.
NPS isn't limited to a single question. It can encompass various aspects of your business. You can tailor your NPS questions to gather more specific insights. Here are some examples:
Example of Net Promoter Score Questions
How likely are you to recommend our customer support?
Would you recommend our new product to a colleague?
On a scale from 0 to 10, how likely are you to recommend our service to your friends?
Uses and Types of Net Promoter Score Questions
These questions can be both relational and transactional:
Relational NPS: This question measures how customers feel about your brand overall. It's like a high-level gauge of customer loyalty and satisfaction. For example, an annual customer satisfaction survey.
Transactional NPS: It's more focused and specific, aiming to gather feedback after particular interactions with your product, service, or department. For instance, a survey after a support call.
Options for Net Promoter Score Questions in QuestionPro.
QuestionPro is one of the leading customer experience management software in the market. Such software typically provides this methodology in a predefined and ready-to-use manner for your surveys. Within this platform, you can find two main types.
Basic Net Promoter Score question: Respondents are asked to rate on a scale of 0-10. Net Promoter Score surveys with these question types consist of one question only.
Net Promoter Score Plus question (NPS+): The NPS plus question type is a combination of NPS, root cause, and comments. It lets respondents share the reasons behind their rating and give detailed feedback via the comments box.
In addition to calculating an overall Net Promoter Score for your organization, you can use an NPS question to get ratings for products or services, websites, stores, or customer support.
While NPS surveys are typically conducted for customers, you can use the NPS question survey for employees, too. The resultant score is known as employee NPS (eNPS). eNPS measures the likelihood of your employees referring your workplace to their friends. It is an indicator of employee health and feedback on the overall work environment.
Improve CX: Without a Net Promoter Score survey, it would be challenging to have a clear idea of how many of your customers are promoters, passives, and detractors. NPS question makes it easy to find out if you need to improve the overall customer experience. More often than not, poor customer service is responsible for low customer satisfaction, customer journey, customer loyalty, customer perception, customer churn, and a high percentage of detractors. Include open-ended questions in your surveys to gather detailed feedback and share it with your front-line representatives. This will help them resolve customer queries better.
Close the feedback loop: You can combine the NPS question with an open-ended text question to let respondents share their detailed feedback. They can let businesses know more about their expectations and improvement areas.
Forecast sales: A good NPS score also implies that your current customers are likely to buy your products in the future as well. It enables you to forecast future sales and plan your actions accordingly.
Create sales and marketing strategy: You can upsell or cross-sell your products and services to promoters. At times, educating detractors about the right products and services for them might improve their experience. A proper marketing campaign can showcase the right solutions for the right audience. As customers get segregated into different categories, marketers can create targeted campaigns for each set of people.
The use of such methodologies can be a game-changer for any industry. Among its numerous benefits, it allows you to have a clear view of the perception that your consumers have about your brand.
Other benefits of using Net Promoter Score to measure customer satisfaction include:
Efficiency and Simplicity: NPS questions are easy to use for market researchers. You need to drag and drop the question type in an online survey software to create a survey of the net promoter system. Respondents have to click on one of the answer options to submit their responses. It doesn't take much time to share customer feedback.
Grow business: Responses to the NPS question give insights on how you can improve customer experience and increase customer satisfaction. Happy customers are highly likely to be your brand ambassadors and promote your business without spending any paid resources.
Retain existing customers: It is more economical to retain existing customers than gain new customers. NPS survey question helps you identify unhappy customers. Working on their NPS feedback will ensure they continue buying your products or services.
Compare with industry benchmarks: Know how you stand in the target market and compare your NPS score with the industry leaders. A comparative analysis will help you know the gaps and by what measure you need to improve.
QuestionPro offers a comprehensive suite of tools to measure and analyze NPS effectively. Here's how it can help:
NPS Question Type: QuestionPro provides a built-in NPS question type, ensuring consistent data collection.
Automated NPS Calculation: The platform automatically classifies respondents into Detractors, Passives, and Promoters and calculates NPS.
Real-time Analytics: Get real-time insights into NPS trends, changes in loyalty, and shifts in customer sentiment.
Customizable Surveys: Tailor your surveys, add follow-up questions, and collect in-depth customer feedback.
Distribution Options: Reach your audience through email, websites, social media, and more.
Closed-Loop Feedback: Follow up with customers to resolve issues and express gratitude to Promoters.
Integration and Data Export: Seamlessly integrate NPS data with CRM and analytics tools for deeper analysis.
Mobile and Offline Surveys: Collect NPS feedback through mobile devices for a user-friendly experience.
One of the critical goals of NPS measurement is to measure how it varies over time. It requires a graphical analysis of the NPS data collected using the NPS survey, with time as a variable.
QuestionPro NPS survey dashboard offers detailed NPS value charts and graphs. It also shows comparative NPS scores and benchmarks based on geographical regions, products, and services.
Net Promoter Score (NPS) Survey Meter
QuestionPro Net Promoter Score (NPS) Meter offers a visual representation of the number of promoters, passives, and detractors in real-time. You can also export Net Promoter Score results in .xls format, apply data filters, and share the NPS report.
Heatmap will give you a system-generated comparative NPS score of various touchpoints under consideration.
Priority Matrix for Net Promoter Score (NPS) survey will give you insights on the NPS Driver score. A high driver score and a low NPS score represent high-priority action items. A high driver score and a high NPS score indicate that the touchpoint is stable and driving the long-term business smoothly.
If you're ready to embark on the NPS journey and unleash the potential of your business, we're here to help. Connect with us to provide an exceptional customer journey and achieve a stellar NPS score. LEARN MORE
Learn how to set up and use this feature with our help file on the Net Promoter Score question type.