Just as an apple a day keeps the doctor away, so does a consistent focus on the Net Promoter Score (NPS) help keep your business healthy and thriving.
Okay, that might be a stretch. But you get the idea.
Keeping an eye on your NPS survey score is key to understanding customer loyalty and how valuable your product is.
What is an NPS survey?
NPS stands for ‘Net Promoter Score’, and it’s a customer feedback survey used to measure customer satisfaction and loyalty.
It’s one of the most popular methods these days, because it is relatively easy to implement and it produces reliable results.
NPS surveys allow businesses to get an overview of their customers’ overall sentiment about their brand, products, or services. It does this by asking customers to rate their experience on a scale of zero (very dissatisfied) to ten (very satisfied), and how likely they are to introduce a product to their network.
Here’s an example of an NPS survey
Have you ever been using a platform, when suddenly a survey pops up requesting feedback?
That’s an NPS survey. It’s usually quick, and asks one or two questions about your experience using a product.
Usually, the question is something along the lines of “How likely are you to recommend ( Product/ service) to your friend or coworker?“
Then, respondents rate the product from zero ( unlikely) to ten ( extremely likely).
Depending on the answer, respondents will fall into the following categories:
- Promoters: 9-10
- Passives: 7 – 8
- Detractors: 0 – 6
The NPS score is then calculated by subtracting the percentage of detractors from the percentage of promoters. It’s a great tool for businesses to get an overview of customer sentiment and loyalty.
Why are NPS surveys important?
NPS surveys are important because they provide companies with valuable insights into their customers’ satisfaction and loyalty.
Indicate company growth potential
Positive NPS scores account for a 20% to 60% variation in the growth of competitors, according to studies by Bain and Company.
This means, companies with leading NPS outgrow competitors two times faster.
Improve customer experience
NPS surveys are a great way for companies to understand what their customers think, and make changes to improve the customer experience.
This is because NPS surveys allow you to listen to your customers, and use that insight to make informed decisions based on what they need and expect from your product or service. This helps create loyalty among customers which in turn, leads to better customer satisfaction and retention.
Companies that keep an eye on their NPS results and create steps to improve their product offering improve their profit. This is because their center efforts are customer-centric and based on data.
A report by CustomerGauge found that there is a strong correlation between a 3.2% revenue growth every time NPS scores improve by ten points.
Decrease churn and boost customer lifetime value
For example, Amazon has a high NPS score of 62. This comes as no surprise, as 69% of their Amazon Prime free trial users convert to paying customers. Not only that, but 98% of them become members for more than two years.
And it’s no surprise, the company is driven by customer-centric and sustainable values.
By using NPS surveys to track customer loyalty over time, it allows companies to get a pulse on how well their business is doing over the long run, and whether or not improvements on the product or service need to be introduced.
How does NPS survey data compare to other feedback surveys?
NPS surveys have been found to be more reliable than other customer satisfaction surveys, such as Customer Satisfaction Index (CSI) and Customer Effort Score (CES). This is because NPS surveys measure customer sentiment in terms of loyalty, whereas other surveys focus on satisfaction and effort.
The data gathered from an NPS survey can provide a more accurate picture of how customers feel about your brand, products, or services.
Next Steps: How to introduce NPS surveys to your product.
Now you’ve got all the knowledge and facts to convince your manager about the importance of including NPS surveys in your platform. The next step is the implementation and best practices of NPS surveys.
Consider a solution that allows you to easily include, edit, and customize surveys into your platform without requiring hours of development time. That means you can deploy NPS surveys in minutes, instead of hours.
Product Fruits offers an invisible layer on top of your platform. This means you can choose the style, when, and how your surveys pop up –– no coding required.
IMPORTANT: Once you have the NPS results. You need a platform that ALSO comes with features to help improve NPS scores. That way, you can continuously optimize and improve the user onboarding and retention of your product.
Interested in learning more? Talk to our Product Fruits experts to see how you can improve customer experience and boost profit.