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Net Promoter Score, or NPS, is a metric that is used to measure customer satisfaction by identifying how likely customers are to recommend a company or its products to others. NPS surveys generally take the form of a single question survey that includes a variation of the following question; ‘on a scale of 0-10, how likely are you to recommend our products to others?’. Responses to this question are used to calculate the NPS score which reflects customer satisfaction and loyalty.
Within this article, we will explore the two main types of NPS to get an understanding of which one is best suited to the requirements of your business.
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There are two main types of NPS and they are transactional NPS and relationship NPS. Let’s take a look at the two to understand what they are and when they should be used.
Transactional NPS aims to collect data on customer satisfaction at a more granular level by sending surveys after specific touchpoints within the customer journey. This information allows organizations to identify customer satisfaction at specific interactions, which helps identify pain points and gaps between customer expectations and customer experience.
Relationship NPS surveys are sent to customers periodically (weekly, monthly, annually) so that organizations can gauge overall customer satisfaction in regard to their organization.
Transactional NPS provides businesses with touchpoint-specific information regarding customer satisfaction. It is therefore used when businesses want to collect customer feedback on certain business transactions.
For example, your organization may want to find out whether your customers are having a good experience when making purchases on your online website. To do so, you may send your customers an NPS survey on your website right after they make a purchase. This survey is transactional in nature as it is designed to measure satisfaction levels at a particular touchpoint within the customer journey.
Transactional NPS surveys often use specific questions and wordings that mention the transaction. Therefore, instead of asking how likely they are to recommend the business or its products in general, the following question may be asked; “Based on your purchase experience, how likely are you to recommend our products to others?”. This question is followed by a scale from 0 to 10 so that customers can indicate their likelihood to do so.
Relationship NPS, also sometimes referred to as regular NPS, is designed to assess the relationship between your business and its customers. It helps identify customer satisfaction in regard to the cumulative experiences a customer has had with your business.
It is important to note that relationship surveys are sent to customers on a scheduled basis, such as quarterly or bi-annually, and are therefore not tied to any specific customer interaction or event.
Unlike transactional NPS surveys, relationship NPS surveys use general and nonspecific questions and wordings that do not allude to any specific interaction. A relationship NPS question is standard and looks somewhat like this; “On a scale of 0 to 10, how likely are you to recommend our products to others?”.
Let’s take a look at the key differences between relationship NPS and transactional NPS:
NPS, or Net Promoter Score, is a customer satisfaction metric that is measured using a single question survey in which customers are asked how likely they are to recommend a company’s products or services to others. Survey results are then used to calculate what is known as the ‘NPS score’.
There are two main types of NPS, namely transactional NPS and relationship NPS.
The key difference between rNPS and tNPS is that rNPS is used to measure customer satisfaction in regard to a customer’s overall experience with a company and tNPS is used to measure customer satisfaction in regard to a specific touchpoint within the customer journey.
Transactional NPS is used when businesses want to assess customer satisfaction in regard to a certain touchpoint within the customer journey.
Relationship NPS is used when businesses want to assess customer satisfaction and loyalty based on customers’ cumulative experiences with their brand.