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Net Promoter Score

1. What is Net Promoter Score (NPS)?

NPS is the benchmark set by companies to measure customer loyalty in their business. A simple way to do it is deducting NPS from the percentage of detractors. It is compiled and evaluated to improve customer loyalty. NPS is not like other benchmarks out there, it is different from CSS (Customer satisfaction score) or CES (Customer effort score). It measures the customer's sentiment about your brand and not just their perception of a single purchase or interaction.

NPS can also be gathered by the employee working for your organization in order to understand their happiness and satisfaction level. It can be used to improve the life of your employees because a happy employee is way more productive and this can improve your business.


2. How to Calculate a Net Promoter Score?

Customers are surveyed in order to know how satisfied they are with your company. They are given a form to fill which ask's them to rate from a scale of 0-10 on their likelihood of recommending you to their friends or family and based on this rating, customers are segregated into 3 groups which are:

  • Detractors
  • Passives
  • Promoters

 

Detractors (0-6)

Customers who rated your business from the range of 0-6 are the detractors. They are unhappy customers who are not happy/thrilled by your product or service. They are responsible for over 80% of negative word of mouth around your brand and are unlikely to repurchase from you. They are prone to a high rate of churn and influence your other customers for the same as well. Though they may look profitable from an accounting perspective, their actions can be fatal to the brand. Their criticisms and bad attitude towards your business can not only harm your brand's reputation but may also play a negative role in your employee's morale.

Passives (7-8)

Passives are those customers who rated your brand around the range of 7-8. They aren't very happy with your brand but are passively satisfied with the performance. This makes them prone to switch to your competitor brands if they see a better opportunity. They are very unlikely on referring you to their friends and families when compared to promoters, plus their referrals would be less enthusiastic. They probably would not spread bad word of mouth around your brand like detractors, but might not even help your brand by actively promoting.

Promoters (9-10)

Passives are those customers who rated your brand around the range of 9-10. They love the products or services your company has to offer. They can be also called loyal enthusiastic fans as they promote your company amongst their friends and family. They are repeat buyers and are far more likely to stick with your brand over time. They also account for more than 80% of the referrals the company enjoys. They are not only good for companies in the short run, but they also keep adding value to the business in the long run by repeat purchases or through word of mouth, plus the added bonus of employee satisfaction after dealing with promoters.


3. What are Relationship and Transactional surveys?

 

Relationship Surveys

Relationship surveys help in finding out the customer's loyalty to your company/brand. Relationship surveys ask customers to consider the whole experience with the brand and how satisfied they were with the performance. They are carried out at regular intervals like:

  • Quarterly
  • Half-yearly
  • Yearly, etc.

Transactional Surveys

Transactional surveys help in finding out the experience a customer goes through during a specific transaction/interaction.

These surveys are designed to measure customer satisfaction and not customer loyalty like the relationship survey.

It is generally recommended to go with relationship surveys to check the consumer’s loyalty to the brand. Transactional surveys are not usually needed by all the companies, it can be initiated once the brand identifies what is important for a good customer experience.


4. What can you measure using the Net Promoter Score?

The answer to this question would be almost anything. NPS can be used to understand and track scores for everything such as:

  • Individual products
  • Stores
  • Web pages
  • Staff members, etc.

Implementing NPS into your marketing strategy can help in checking how well are you doing than your competitors. It also helps in understanding the target market and how they respond to your:

  • Product or Service
  • Social Media Campaigns
  • Customer Service Agents, etc.

The ultimate goal is to gain and build a set of loyal customers who act as a promoter for your brand.


5. What should be included in an NPS Survey?

  • Basic demographic questions.
  • The Net Promoter Score question (Rate from 1-10 0r 0-100)
  • Justification of the score?
  • Feedback on how to make the experience better?
  • Permission to followup with the customer in the future.

6. Is there a best day of the week or hour to send surveys?

This is one of the most commonly asked questions by brands in order to improve their response rate from their customers. But the right answer to this question is: It won't matter much! 

You need to keep experimenting with the time and day in order to check what works the best for you and your brand.

7. What channels should you be sending Net Promoter surveys on? 

There are many ways through which you can send your Net promoter surveys to your customers, but it's important to decide which channel works the best for you. Find out what channel gives you the best response rate.

The most common methods used to share survey links are through email or SMS. But brands have been also leveraging other channels like Instagram, Facebook, Youtube, WhatsApp, etc to spread their survey links.

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