A Complete Guide to Boost Your Business with NPS

Net Promoter score is a metric to measure customer satisfaction and loyalty for a brand. However, the question that a Net Promoter Score survey asks is about the likelihood of a customer to recommend a brand's product or services.

Promoters: Those who rate you either 9 or 10 are called promoters and these people are highly likely to do positive Word of Mouth for you.

Passives: Those who rate you 7 or 8 are called passives and they are found neutral in terms of publicity.

Detractors: Those who rate you a 06 are detractors and they are highly likely to do negative Word of Mouth due to a bad customer experience.

Let's say you want to use NPS in the banking industry and send 200 NPS surveys to your customers and these are the results:

Now, you can compare this score to the benchmark of NPS in banking but there’s a lot you can measure.

Customer Retention: If your NPS is high then it means that there are more promoters than detractors. Hence it signifies a likeliness of customer retention. But if the detractors are more than the promoters then, it means customer churn is most likely if you don't do anything about it.

Customer Acquisition: NPS is also inversely proportional to the customer acquisition cost or directly proportional to the customer acquisition through Word of Mouth or referrals.

Customer Loyalty or Advocacy: If a customer is a promoter of your brand, then it means he/she is an advocate of your brand too. And if your NPS is high, then your brand advocacy or loyalty is also high.

2. Include Key Questions: Incorporate the NPS question, “How likely are you to recommend us to a friend or colleague?” along with an optional open-ended feedback question.

3. Choose Distribution Channels: Select appropriate mediums like email, SMS, or in-app surveys based on customer engagement preferences.

4. Time It Right: Send surveys shortly after customer interactions or purchases for accurate feedback.

5. Categorize Respondents: Segment respondents into promoters, passives, and detractors based on their ratings.

First of all, look at the patterns and trends in the data you have got. You can do so by simply segmenting the responses based on factors like demographics, purchase history, etc. With this segregation, you can judge the satisfaction or dissatisfaction of a particular group based on the above factors.

With the help of a follow-up question asking what's the reason for choosing the particular rating and a sentimental analysis tool, you can learn about the reason why people are satisfied or dissatisfied with your product or service.

As you get to know about the reasons behind the customers’ satisfaction or dissatisfaction, now you must take action to fix the problems. With this move, you can increase your customers’ satisfaction and loyalty.

Disadvantages of Employee Net Promoter Scores (NPS)

Employee Net Promoter Scores (NPS) can provide valuable insights, but they come with limitations. They offer a narrow perspective, as they focus only on loyalty, overlooking broader aspects of employee satisfaction. The results may also lack actionable detail due to their simplistic nature, making it harder to identify specific areas for improvement. Additionally, employees may feel hesitant to provide honest feedback, especially if anonymity is not guaranteed, leading to skewed results that affect decision-making.