An Ultimate In-depth Guide to NPS Surveys & Their Best Practices

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Net Promoter Score (NPS) metric is used to gauge customer loyalty, and satisfaction with a company’s products and services, and is calculated by asking customers one question “How likely will they recommend your product or service to a relative or friend on a scale of 0-10″?

Aggregate NPS scores help businesses to improve service, customer support, delivery, etc. which will help improve their customer loyalty.

NPS survey as a business metric helps companies of all sizes to improve their business by earning more interested customers who can be tracked easily and quantified over time.

Why is NPS Important?

Net Promoter Score (NPS) is an important metric using which customer loyalty and overall satisfaction with a brand is measured. And therefore, it becomes very important to use NPS surveys through different touchpoints throughout the customer journey.

Moreover, it is recommended to conduct an NPS survey through different channels depending on where your customers choose to interact with your business.

NPS is a valuable metric on a strategic level by itself, but the NPS score alone isn’t sufficient to give a total picture. The overall NPS system is crucial because it allows businesses to:

Ask follow-up inquiries as a piece of the standard NPS survey. By asking customers why they have given a particular score, organizations of any size can understand whether they are performing well or not, or where they can improve.

Track and quantify an NPS score over time, creating internal benchmarks.

Conduct a meeting with employees and tell them to focus on one mission-critical objective, this will help earn more enthusiastic customers.

Let’s now currently learn in detail how to ascertain NPS scores, what are considered good NPS scores & bad NPS scores, how to conduct a survey using an NPS Survey tools, what are various types of NPS surveys, and the channels with which you can conduct NPS surveys.

How to Calculate NPS Scores?

NPS is determined by deducting the level of clients who answer the NPS question with a 6 or lower (known as ‘detractors’) from the level of clients who reply with a 9 or 10 (known as ‘promoters’).

Net Promoter Score Scale is divided into three categories: Detractors, Passives, & Promoters.

Promoters: Promoters are those people who are considered the company’s most enthusiastic and loyal customers. Such types of persons are likely to act as brand ambassadors, they will enhance the brand’s reputation, increase referral flows, and help fuel the company’s growth.

Passives: Passives are those people who give scores between 7 and 8. These are people who will not actively recommend a brand or a product to others but at the same time, they will not damage it with negative word of mouth.

Although passives are not included in the NPS calculation, passives are very close to being promoters, so it always makes a strategic sense to spend time investigating what to do to win them over.

Detractors: Detractors are those who give scores between 0 to 6. These are those persons who are unlikely to recommend a company or product to their friends and relatives. Such people never stick around or repeat purchases, and the worst would be that they would actively discourage potential customers to stay away from a particular business.

What is Considered a Good NPS Score?

If any score reads above 0 between –100 to +100 then it is considered good because this is an indication that the brand or business has more promoters than detractors.

In top-level companies, you will find that in general, they will have an NPS score of 70 and above, however, if you think this is the domain of big, and global companies then you will be surprised to find that top brands like Netflix had an NPS of 64, PayPal scored 63, Amazon scored 54, and companies like Google and Apple scored 53 and 49.

A perfect score of 100 shows that every survey respondent would recommend a company or brand to some of its friends or relatives – a score that neither the brand nor company has ever achieved.

What is Considered a Bad NPS Score?

Any score below 0 clearly indicates that the company or brand has more detractors than promoters. Here is where industry NPS benchmarks like the ones mentioned above are useful.

Although an NPS score of – 3 may look bad in isolation, it’s hard to interpret it without comparing the NPS scores achieved by key industry players – if a particular industry’s average score was – 10, suddenly the score will not look as bad.

Having said that, if the bar is set low, a negative NPS is a sign that a particular brand or business has some serious work to do to improve the situation. The brand or business can reduce the number of unhappy customers and can generate more promoters.

Types of NPS Surveys

NPS studies can be utilized in various ways and are categorized into two types: Transactional surveys & Relational NPS surveys.

Transactional NPS surveys: These are those types of surveys that are sent after a particular interaction or transaction or after making a payment, placing an order, booking tickets, etc.

Transactional NPS surveys are triggered during an event and are meant to understand customers’ loyalty based on the transaction that they have done recently rather than looking at the customers’ relationship with the brand as a whole.

Here’s an example of a transactional NPS survey question:

“Depending on your current purchase experience, how likely would you like to recommend shopping on our website to your friends or relatives?”

Relational NPS overviews: A relational NPS review is a type of survey that is sent at fixed intervals in a customer journey. The main goal of sending this survey is to understand the customers’ loyalty to the brand as an entire instead of in light of a specific transaction.

Generally, relational NPS surveys are sent either annually, quarterly, or yearly.

What are the Ways to Send NPS Surveys?

NPS Email Surveys:

NPS surveys can be directed on various channels in light of your clients’ accessibility and decision of platform for interaction. The following are the various ways through which you can deploy NPS surveys.

NPS Email Surveys can be sent to customers individually via email or else they can be robotized to be sent to a group of clients.

It all depends on when you are planning to send NPS studies in a client journey.

For instance, conditional NPS studies are set off exclusively after an event is complete whereas relational NPS studies can be shipped off to a gather of clients, contingent upon where they are in a customer lifecycle.

Here are scarcely any kinds of Email surveys you can use

    Email Signature NPS Surveys: Email signature reviews are implanted straightforwardly in the mark of an email and can be sent as a piece of progressing communication.

    Such types of surveys can increase the response rate since customers answer questions during the support interaction, and they don’t have to go survey landing page.

    Email Embedded NPS Surveys: Such types of NPS surveys are embedded straightforwardly in the email body utilizing the Email Embed survey highlighted in your NPS survey software.

    Email-embedded surveys can be sent personally to a person or group after a resolution or interaction with him/her or the group of customers to understand a person’s or group’s perception of the brand as a whole.

    Email Button or Link Surveys: Such types of surveys are embedded in a button that can be added to the email body. When customers click the button then it takes them to the survey landing page.

The NPS survey link can be sent to thousands of customers in a single go.

NPS Website Surveys:

Putting NPS surveys on a website is very important. This assists in catching NPS reactions even from those customers who are quite busy and may not take out time to open email surveys to share feedback.

NPS website surveys moreover help in collecting generalized website feedback even from those people who haven’t shared their contact details with you yet.

NPS SMS Surveys:

SMS surveys are those surveys that consist of survey links, which when clicked, take respondents to the survey landing page.

SMS surveys are easily accessible; however, the condition is that the person must have internet access to take on the survey, just like other online surveys.

NPS QR Code Surveys:

NPS reviews can be embedded in QR codes, which when scanned will take participants to the review page. QR codes with implanted reviews can be imprinted on packaging material, doors, tables, tent cards, instruction manuals, etc. and at various other touch points in a retail store, restaurant, café, etc.

This allows big and small brands and businesses to conduct transactional NPS surveys to understand customers’ loyalty to the brand after a particular event.

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