Survey - Loyalty & Retention: Net Promoters Score

A Net Promoter Score (NPS) is a powerful tool used to track customer loyalty and gauge customer lifetime value. A simple survey asking customers to rate your business, product or service on a scale of 0-10.

- It gives you a simple answer to find out what customers think of your brand, what you’re doing well and/or whether you need to make some changes to your product/service.

• You can compare how different teams or departments are tracking compared to each other.
• Easy way to benchmark against competitors. Have a look at our website for a link to industry benchmarks within New Zealand. ( https://www.customermonitor.com/net-promoter-score-benchmarks-new-zealand )

In a snapshot, the real benefit of the NPS shows you how you can strategically engage with your customers.

Source: Zapier

It’s a great channel for open communication between you and customers. If you have customers who are passives or detractors, you’re able to find out straight away and iron out any kinks. This demonstrates a clear dedication to customer satisfaction , and after following respondents up, you'll understand exactly what your customers want from your business, product or service.

Promoters

• Rate you between 9 & 10
• Are loyal and likely to repurchase
• Fuel growth through word of mouth (best form of marketing)

Passives

• Rate you between 7 & 8
• May choose a competitor from time to time
• Are left out of the NPS calculation

Detractors

• Rate you between 0-6
• Requires proactive outreach to mitigate any damage or negative word of mouth
• Are not satisfied by your product/service and are likely to go to a competitor

1. Calculate the total number of respondents who replied

2. Calculate the total number of respondents who gave you a 9-10 (Promoters)

3. Calculate the total number of respondents who have you a 0-6

Feedback Loop: The true power in NPS is following up and closing the loop by communicating further with each customer who replies to the survey. It’s a great opportunity to build relationships. If they are a promoter, you can ask for a review or give them specific ways to promote your product or service. If they’re a detractor, you can understand how their needs aren’t being met and what you can do in the future.

Best practice for tracking trends over time is to send individual customers four Net Promoter Score surveys per year. Customer sentiment changes constantly and it’s important to see whether your Net Promoter Score is improving, staying consistent or decreasing. It gives you enough data to see trends, while still leaving enough time for the changes you make to take effect.

You can segment and categorise the respondents. It will allow you to demonstrate evidence of where key drivers in your business are, or help you to prioritise challenge areas so you can take meaningful action to remedy the situation. By segmenting the respondents you can prioritise improvements to boost the NPS among user groups that drive the most revenue.