When businesses want to know how loyal their customers are to them, when hospitals are curious to know whether their patients would recommend them to others, or when restaurants wish to learn if their clients would share a word about them with others, they turn to NPS survey.
NPS is considered as the benchmark metric when it comes to customer experience, loyalty, enthusiasm, and satisfaction. So, millions of businesses across the globe employ it to measure and track how their customers perceive them.
What is NPS survey?
NPS stands for Net Promoter Score. As mentioned earlier, it is a metric used to measure customer loyalty to a firm. NPS scores are measured by asking the ultimate question “How likely are you to recommend us to your friends and folks on a 0 to 10 scale?”
The score is reported as a number from –100 to +100. The higher the score, the higher is your customer loyalty.
There are two types of NPS surveys based on when you send the NPS question to your customers. These include relational NPS surveys and transactional NPS surveys. The former is sent on a periodic basis (monthly, annually, or quarterly) to get a periodic pulse of how customers feel about your brand.
The latter is sent to customers soon after they interact with your firm (via a support call, purchase, etc.). This helps comprehend customer satisfaction on a granular level. We suggest that you employ both kinds of NPS surveys to gain a micro and macro-level understanding of your customers.
How to calculate your NPS score?
For scoring your NPS, your respondents’ ratings are analyzed. A score of 0 indicates that the respondent isn’t at all likely to recommend your brand to others whereas a score of 10 indicates that they are extremely likely to recommend.
Based on their response, your customers are categorized into 3 categories to calculate the NPS score.
- Those who have given you a score of 9 or 10 are called Promoters. Usually, they are your most enthusiastic and loyal customers.
- Those who have given you a score of 7 or 8 are called Passives. Though they are your satisfied customers, they aren’t happy enough to be counted as promoters. Simply put, they are neutral folks.
- Those who have given you a score of 0 to 6 are called Detractors. They are unhappy customers who aren’t likely to purchase from you again. They even may deter others from purchasing from you.
Now, let’s use this data to calculate your ultimate NPS score. Here’s the formula-
The percent of Promoters = No. of Promoters / Total no. of Respondents
The percent of Detractors = No. of Detractors / Total no. of Respondents
NPS score = The percentage of Promoters – The percentage of Detractors
For instance, if 80% of respondents are Promoters, 15% are Passives and 5% are Detractors, your NPS score would be 80-5 = 75.
As mentioned earlier, the NPS score is a number from –100 to 100. If you get a positive score, it means you have more promoters than detractors. And if you get a negative score, it means that you have more detractors than promotes.
The average scores in the Net Promoter system vary vastly from industry to industry. Getting to know your industry’s NPS average helps you know what counts as a good or bad score in your sector and comprehend how your important competitors are performing.
Why is NPS important?
Your NPS score can be predictive of your business growth. If you get a high NPS score, you can infer that your relationship with your customers is healthy and that they are advocating on your behalf. The NPS system is important as it allows companies to:
- Get feedback from customers on how they perceive you. By asking them why they’ve given a particular score, you can know what you’re doing well and where you need to improve.
- Track and quantify a score over time. This helps you come up with internal benchmarks.
- Motivate your employees to strive towards achieving a high NPS score for your firm. This can earn you more enthusiastic customers.
- Identify the section of customers who are at the highest risk of leaving you and take efforts to win them back. This in turn aids as one of your best customer retention strategies.
However, do remember that though a valuable metric, NPS is not enough on its own to give a comprehensive view of your firm’s performance.
Further, it is not scoring your NPS, but how you actually leverage the insights derived therefrom that can help fuel your growth. In the later part of this blog, we’ll discuss how.
How do you create NPS survey?
It isn’t hard to create an NPS survey, but you must take into account the long-term data usage when determining how you’ll utilize them. For this, you should use an NPS survey tool like NotifyVisitors.
It’ll help you collect actionable customer feedback to drive brand awareness and accelerate growth.
Its do-it-yourself editor allows you to customize the colors, questions, heading, and more of your NPS survey so that it is consistent with your branding. As it allows white labeling, you can add your logo as well.
You can share your NPS survey thus created through multiple platforms such as email and website on different devices such as desktop, mobile, and tablet. You can target respondents based on different criteria such as geo-location, customer activity, and page URLs.
Its real-time dashboard makes reviews and ratings available immediately. It updates the entire chart and graph in real-time for better data visualization. You can also easily export this data to your stakeholders.
Further, besides collecting qualitative and quantitative feedback to give your NPS score, it also provides you with deep analytics and insights. You can apply these to accelerate growth and reduce churn.
One more benefit of using this tool is that if you would like to conduct your NPS survey periodically, you can automate it using this software. This kind of dynamic scheduling is a boon for busy businesses.
What are the strategies to automate the NPS survey?
Setting up NPS automation not only helps your company ask the NPS question to your customers at the right time but also puts the information derived therefrom to meaningful use to drive business growth.
1. Automate asking the NPS question at the right time
Automate the asking of the NPS question to your customer at the right time in their journey. The right time is usually soon after a customer interaction with your business takes place.
It can be something like they’ve availed your customer support or received the product ordered at your e-store. You can also automate asking the NPS question on a quarterly or annual basis.
2. Automate the segmentation of your respondents based on their scores
As mentioned earlier, you need to leverage the insights derived from your NPS survey to fuel your business’ growth. You need to follow up with respondents as per their feedback and then focus on engaging each one of them.
This is why you need customer segmentation based on the NPS scores they’ve given. Automate the segmenting of your respondents into promoters, passives, and detractors.
3. Automate follow-up emails
Once you have segmented your customers into promoters, passives, and detractors based on how they’ve scored you, you need to follow them up through emails.
Automate the sending of a heartfelt “Thank you” email message to your promoters. You can also request them to follow you on social media, or reward them for their loyalty.
Your email campaigns for your passives should encourage them to become your promoters. In the case of detractors, send a humble message asking why they scored you low and what you can do to improve their scoring in the future.
4. Automate reporting to customer service
Your detractors need to be given immediate attention. For, it costs significantly more to acquire new customers than to retain existing ones.
So, as soon as a respondent gives you a low score that categorizes him or her as a detractor, you should notify your customer service center. Set a trigger to perform this so that your staffs take an action to resolve their issue.
Also, provide good training to your customer service reps and technical support team to handle issues smoothly.
5. Employ dynamic content
The term “dynamic content” refers to presenting varied content to different users based on their interests, preferences, and behavior.
Employ dynamic content on your website/email/push notifications to show relevant content to a respondent based on his/her NPS score. This will personalize their user experience.
NPS is the benchmark metric when it comes to customer loyalty and satisfaction. The higher the score, the higher is your customer loyalty. Hence, your NPS score can be predictive of your business growth.
If you get a high NPS score, you can infer that your relationship with your customers is healthy and that they are advocating on your behalf. If not, you need to work on your customer satisfaction by improving their experience with you.
For, it is not in scoring your NPS, but in leveraging the insights therefrom that can help fuel your growth. So, use a good NPS survey tool like NotifyVisitors to collect actionable customer feedback to drive brand awareness and accelerate growth.
In this blog, we’ve discussed five useful strategies to automate your NPS survey. Do put those into practice to enjoy the benefits of taking NPS surveys.