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What is NPS® Survey? : Definition, Method and Examples

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What is NPS® Survey?

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Net Promoter Score® Survey (NPS® Survey) is a well-known metric used for measuring customer satisfaction and loyalty. With an aim to predict the business growth and revitalize the customer experience, this survey involves asking customers a question: “On a scale ranging from 0 to 10, how likely are you to recommend our product/service to your friends or colleagues?” This is usually followed by another open-ended question: “Why did you give us that score?” This question comes with a dialog box for customers to write their feedback in. Leveraging data from this question empowers brands to improve their service, delivery, client relationships, etc. This plays a crucial role in increasing loyalty and boosting customer lifetime value. 

As the scale of an NPS® survey ranges from 0 (Not at all likely) to 10 (Extremely likely), the respondents can be grouped as follows:

  • Promoters: These are loyal enthusiasts of your brand who rate you either 9 or 10. These are the building blocks of your business as they keep buying from you and referring others too, fueling growth.
  • Detractors: These are unhappy customers who give you a rating between 0-6. They are responsible for damaging your brand reputation and impeding your business growth due to negative word-of-mouth.
  • Passives: These are the customers who are happy but not unenthusiastic enough to promote your brand. By giving a rating between 7 and 8, these customers can easily switch to competitors’ offerings if given a chance. 

To calculate Net Promoter Score®, the percentage of detractors (who gave you a rating between 0-6) should be subtracted from the percentage of promoters (who gave you a rating of 9 or 10). While the Net Promoter Score® can be interpreted as a value from -100 to 100; where the negative value describes that the brand has more detractors than promoters and positive in the opposite scenario i.e. when the brand has more promoters than detractors. 

Why is NPS® Survey important?

An NPS® survey is considered to be a great predictor of business growth. When a brand’s NPS® is high (or better than the average industry standards), it indicates that the brand has successfully established a strong and healthy relationship with its customers. These customers prove to be evangelists for the business, spread a positive word of mouth, and play an indispensable role in the growth cycle. 

While there exist multiple customer satisfaction metrics which are valuable on a strategic level, relying completely on those does not help brands to paint a detailed picture of the customer experience. An NPS® survey is important because it enables businesses to:  

  • Simply ask follow-up questions related to the score they’ve given. By questioning the respondents about the reason behind their rating, businesses can get a fair understanding of what they’re doing right and where they’re lacking.
  • Effectively track as well as quantify their scores over time and create internal benchmarks to stack up against the industry competition.
  • Assemble the entire workforce to focus on one key objective – earn more enthusiastic customers that can help to promote the brand. 

What is a good NPS® score?

From the given range of values between -100 to +100, any score greater than 0 is considered to be ‘good’ as it shows that a brand has more promoters than detractors.

An NPS® score of +100 shows that there are no detractors for a business and every respondent is highly enthusiastic to recommend the company to others. This score is practically infeasible and no brand has ever achieved it. 

While high-end companies usually have an NPS® of 70 and above but don’t consider it the domain of global and renowned brands only! Do you know in 2018, Netflix had a Net Promoter Score® of 64, giving a tough competition to PayPal (63),  followed by Amazon (54), Google (53), and even Apple (49). 

What is a bad NPS® score?

If the value of the Net Promoter Score® goes below 0, it shows that a brand has more detractors and fewer promoters. Getting a negative NPS® is an alarming situation for businesses as it makes them realize that they are not performing well. A bad NPS® also propels businesses to improve their offerings, rectify the gaps, minimize the unhappy customers, and increase their promoters.

How to create an effective NPS® survey?

While NPS® surveys are quite simple to create, it’s important to keep in mind the long-term use of data before deciding how to administer them. Using survey software can help but it will measure a single metric only, which in turn will restrict your ability to take action on the generated results. In such scenarios, leveraging a robust customer experience management (CXM) solution or NPS® software can help. By empowering you to gain insights into all interactions across every touchpoint of the customer journey, CXM solutions can help you gather NPS® data to see which touchpoints are performing and which are not. Here are the questions you should include in your NPS survey: 

  • Include demographic questions
    Initiating an NPS® survey with demographic questions (about age, gender, marital status, income, etc.) is not uncommon and can play a key role in segmentation while you perform research and analysis. But it’s important to avoid asking demographic questions in your NPS® survey if they are not required, or when you already have a CRM or customer database to fetch customer data from. Never forget, keep your surveys short and crisp!
  • Add the Net Promoter Score® question
    As discussed above, it is the core question of the NPS® survey that comes as a primary source to measure your NPS® score. The other questions included can help to streamline the process of data analysis and address the feedback of the respondents.
  • Ask for the reason behind the score
    By including an open text question in your NPS® survey, you can directly ask your customers about the primary reason behind the numerical score given by them in the previous question. This plays an essential role in discovering the key drivers behind the experience of promoters and detractors. However, analyzing open text feedback is a time-taking process (especially when there are a few dozen responses), it’s ideal to use a text analysis tool.  
  • Ask how to make their experience better
    In this stage, you question your respondents to understand how their experience can be improved. This is a necessary step as it enables you to close the follow-up loop as well as customer ticketing effectively. Once you successfully identify this answer, you can kickstart resolving the customer issues within no time. However, this follow-up question will not be used in every scenario. For instance, if the reason behind a low NPS® score was, “expensive cost”, their experience will probably be improved by, “minimizing the costs”.

Elevate experiences that impact NPS® using Voxco Surveys

Voxco offers best-in-class NPS® surveys that help you gather actionable data at important touchpoints along the customer journey. By understanding how customers feel about each aspect of your product or service, you can easily turn your detractors into promoters. To improve your Net Promoter Score® and stack up against industry competition, you can use Voxco’s free NPS® Calculator.    

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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