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Net Promoter Score® Hub
Net Promoter Score®, or NPS®, is a customer satisfaction metric that measures how likely a company’s customers are to recommend their products or services to others.Â
There are two main types of NPS®, namely Transactional NPS® (or tNPS®) and relationship NPS®(or rNPS®). Transactional NPS® is used to collect customer feedback at different touchpoints within the customer journey while relationship NPS® is used to collect feedback periodically (monthly, quarterly, annually). Within this article, we will specifically delve into transactional NPS®, its types, and its advantages and disadvantages.Â
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Transactional NPS® surveys collect NPS® feedback at a granular level after specific touchpoints. These touchpoints refer to any type of interaction customers have with a business including;Â
Transactional NPS® is therefore used to determine customer sentiment in regard to a specific interaction. The feedback collected through tNPS® surveys is immediate as it is collected right after an interaction is complete. This allows businesses to capture information on customer sentiment right after a touchpoint when the interaction is still fresh in the customer’s mind. The information collected through tNPS® surveys helps organizations identify pain points within the customer journey, as well as gaps between customer experience and customer expectations.
Transactional NPS® surveys are used to collect customer feedback in regard to specific interactions within the customer journey. Relationship NPS®, on the other hand, is used to collect customer feedback in regard to the customer’s cumulative interactions with the organization. Therefore, rNPS® provides information on the strength of the customer’s relationship with the organization.Â
Another key difference between tNPS® and rNPS® is that tNPS® surveys are conducted right after specific interactions and are therefore dynamic in nature whereas rNPS® surveys are pre-planned and are conducted after dedicated intervals (quarterly, bi-annually, annually).Â
The following are a few useful types of tNPS® surveys that can be used by organizations to gather useful information regarding customer satisfaction:
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 Relationship NPS® surveys are pre-planned and are conducted periodically at specific time intervals. They are used to gather information regarding a customer’s relationship with the organization. Transactional NPS® surveys, on the other hand, are sent directly after specific touchpoints to gather information regarding customer satisfaction at different touchpoints within the customer journey.Â
Some advantages of tNPS® are that it provides touchpoint-specific information, it allows organizations to identify pain points within the customer journey, and it acquires immediate feedback.Â
Some disadvantages of tNPS® are that when open-ended questions aren’t included in the survey, it doesn’t collect information on the cause(s) of dissatisfaction. This makes it hard to pinpoint what exactly influences customer loyalty. Additionally, when open-ended questions are used, the data collected is hard to analyse and derive insights from.Â
Transactional NPS® surveys should be used when organizations want to collect information regarding customer satisfaction at specific touchpoints.
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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