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NPS The definitive guide visual 19

CUSTOMER EXPERIENCE | NPS®

How to conduct NPS® Survey?

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Your target customers have five different brands offering the same products at competitive pricing. So how do you ensure your existing customers stay with you while recommending you to their friends and families? 

NPS® or Net Promoter Score® can help you effectively gauge who your loyal customers are and how likely they are to recommend your brand’s products/services. Conducting an NPS® survey can help you gather valuable insights into how customers perceive your business and where you stand in the market. 

Here we’ll see how to create NPS® surveys and their types. 

What is NPS® ?

Customer satisfaction metrics are used to quantify and measure customer satisfaction and loyalty. Net Promoter Score®, or NPS® , is a type of customer satisfaction metric that uses surveys to investigate how likely customers are to recommend a product or service to others.

To create NPS® surveys, you can ask variations of the question, “On a scale of 0-10, rate how likely are you to recommend us to your friends, family, or colleagues?”. 

Most NPS® surveys only have this one question, however, you may also choose to include an open-ended question customized based on the score given by the respondent using a robust NPS® survey software. This provides you with the reason for the score, which you can analyze using sentiment analysis to explore the root cause of the score.

How to conduct NPS Survey

Download Now: The Definitive Guide to NPS®

Steps on how to conduct an NPS® Survey

These are the following steps an organization may take in order to conduct an NPS ® survey:

1. Create NPS® surveys

    • The first step to creating an NPS® survey is to customize it to your company’s personality. Leverage an NPS® survey platform that enables you to customize your survey with your brand’s logo, font, colors, style, and more.
    • Next, add a title to the survey, as well as a brief description to explain the significance of the survey to its customers. Most importantly, the question(s) must be decided.
    • There are many ways in which the NPS® question can be framed, for example:
      • How likely are you to recommend our internet service to friends and family?
      • Rate on 0 to 10, how likely are you to recommend our spa to others?
      • How likely are you to recommend our skincare product to others?
    • You can ask a question about a specific product or service or about the firm and consumer experience as a whole. It is important that a company customizes its question in regard to its use case.  
    • You can also add a follow-up open-ended question to ask the reason for their score. 
    • Finally, add a thank you page to show your appreciation. 

2. Choose a mode of survey distribution

  • There are different ways in which a company can distribute its online surveys. These are a few of the ways in which it can do so:
    • On-site surveys: These show up directly on a company’s website.
    • Surveys via email: These surveys are created and sent to customers via email.
    • In-app surveys: In- app surveys can be used by companies that have their own applications.

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Types of NPS® Surveys

The way a company chooses to send out its survey may also depend on the type of NPS® survey they are sending. There are two main types of NPS® surveys.

  • Relationship surveys.
  • Transactional surveys. 

Relationship surveys, as the name suggests, are more focused on getting an insight into the company’s relationship with its customers and are usually used to identify a degree of customer loyalty. For this reason, NPS® relationship surveys are sent on an interval basis. Hence a lot of companies choose to send this kind of survey through email.

Transactional surveys, on the other hand, try to understand the degree of customer satisfaction more than loyalty. These surveys are sent after a customer’s interaction with the company and are usually sent in regard to a customer’s experience with a product or service. This could be after the purchase of a product, or after a call with a customer service employee, for example. These surveys may be better suited on-site or in-app, where a customer’s interactions with the company take place.

How to conduct NPS Survey 2

The importance of Time and Frequency

When you are concerned about how to do NPS surveys, it’s important to consider the NPS survey frequency and time of the survey as well.

  1. NPS® surveys should be conducted often in order to track changes in the NPS® score and customer satisfaction levels. However, they should not be sent too often as it may irritate customers. Additionally, if the interval time is too short, the survey will not produce useful results. An ideal interval time is 2-4 months.
  2. A company should wait an appropriate amount of time before sending surveys to new customers. It is not effective to question customer loyalty too early and survey responses may prove unreliable. It is important to wait until the customer has had significant experiences and interactions with the company before the survey is sent.
  3. NPS® transactional surveys must be sent at significant moments and context must be taken into consideration. An appropriate time to send these surveys may be after a customer has just purchased an item from the business or after a large campaign, for example.

Why NPS® Surveys are important?

NPS® surveys can prove to be invaluable to a company for a number of reasons.

Understanding customer satisfaction & loyalty

Companies benefit from having an idea of customer satisfaction and loyalty because the cost of acquiring a new customer (CAC, or customer acquisition cost) is significantly higher than the cost of retaining an existing one.

Segmenting existing customer base

Additionally, the business environment can be highly competitive with the introduction of hundreds of start ups everyday. It is important that a business holds on to its existing customer base and doesn’t lose it to competitors. NPS® surveys allow businesses to categorize their customer base into the three categories; promoters, passives, and detractors. This aids companies in diagnosing problem areas and customer expectations. This information could then allow companies to improve the experience for detractors, and turn passives into promoters.

Conclusion

You should create NPS surveys because they provide meaningful insights into customer satisfaction and loyalty. Measuring the likelihood of customer recommendation enables you to identify areas of improvement and create targeted strategies to convert detractors into advocates and increase loyalty and customer retention. 

NPS surveys help businesses to stay competitive and identify ways they can differentiate themselves from the competition. Leverage an NPS survey software and NPS dashboard to gain insights into customers’ needs, pain points, and preferences and improve customer satisfaction. 

FAQs

1. What is an NPS® survey?

Net Promoter Score®  survey consists of a single likelihood to recommendation question, which allows you to measure customer loyalty and satisfaction. It asks customers a single question to determine how likely they are to recommend a business’s products or services to others. 

The metric is an indicator of customer loyalty and retention. 

2. How does an NPS® survey differ from other customer satisfaction surveys?

NPS® surveys differ from other customer satisfaction surveys in that they focus on measuring customer loyalty and likelihood to recommend rather than overall satisfaction. NPS® surveys also use a simple 0-10 scale to rate the likelihood of recommendation, which is then used to calculate the NPS® score.

This allows you to group customers into three segments: 

  • Promoters: those satisfied with your brand. 
  • Passives: they are neither satisfied nor dissatisfied. 
  • Detractors: those who are unhappy about their experience. 

3. What are the benefits of conducting an NPS® survey?

The benefits of conducting an NPS® survey include gaining insights into customer loyalty and satisfaction. It helps you identify areas for improvement, the root cause of customer churn, and reasons for customer loyalty, so you can create targeted strategies to increase customer retention and loyalty.

4. Can you customize the look and feel of the NPS survey with an NPS survey platform?

Many NPS® survey platforms allow for the customization of survey design branding and questionnaire. You can customize the look and feel by adding company logos and colors to the survey. You can further customize the follow-up question based on the scores respondents select without needing to add skip logic. 

5. What are the benefits of using an NPS® survey app?

Using an NPS® survey app can provide benefits such as customized survey creation, easy survey distribution, automated survey administration, real-time data collection and analysis, and follow-up. Additionally, an NPS® survey app can often provide customizable reporting features.

6. How often should you conduct NPS surveys?

NPS survey frequency depends on several factors, such as the size of the customer base, the nature of products or services, etc. Leverage an NPS survey software to schedule survey time and date. Here are three ways you can determine the frequency of your survey. 

  • Regular intervals: such as quarterly or annually.
  • Event-based surveys: conducted after specific events such as launch or completion of a project. 

Triggered surveys: automatically send after a specific customer interactions, such as purchase or customer support request.

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Net Promoter®, NPS®, NPS Prism®, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld. Net Promoter Score℠ and Net Promoter System℠ are service marks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld.

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