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NPS The definitive guide visual 19

CUSTOMER EXPERIENCE | NPS

How to conduct NPS Survey?

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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.

Variations of the question “On a scale of 0-10, how likely are you to recommend us to your friends, family, or colleagues?”, is what is asked on an NPS survey. Most NPS surveys only have this one question, however, some companies may choose to include more.

How to conduct NPS Survey

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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 a survey

  • The first step to creating an NPS survey is to customize it to your company. A title must be given 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 question can be framed, for example:
    • How likely are you to recommend us to your friends and family?
    • On a scale of 0 to 10, how likely are you to recommend us to others?
    • How likely are you to recommend our product to others?
  • As reflected by the examples shown above, the question may ask 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. Some companies choose to have more than one question in their NPS survey but doing so may make it more complicated to calculate the NPS score.

2. Choose a mode of survey distribution

  • There are different ways in which a company can distribute its 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 their survey may also depend on the type of NPS survey they are sending. There are two main types of NPS surveys; transactional surveys and relationship surveys. 

Relationship surveys, as the name suggests, are more focused on getting an insight into the company’s relationship with their 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 company’s choose to send this kind of survey through email.

Transactional surveys, on the other hand, are trying 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

  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.

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Hindol Basu 
GM, Voxco Intelligence

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