Do you remember receiving emails from brands that you shopped with, asking you
- How likely will you recommend the particular product to your friends and colleagues?
- How likely will you recommend their brand to your friends and colleagues?
It’s called Net Promoter Score (NPS)
But, why bother with all this?
Well, a positive NPS score means lots of people are raving about your company, which is like free advertising. It also suggests the company is treating its customers well. But if the score isn’t so great, it’s a sign that the company needs to up its game and make things better for customers.
In order to understand where you stand in the matters of customer satisfaction you need to measure your NPS by creating an NPS survey, sending it across multiple channels, and analyzing the gathered data.
Fret not! With this blog learn how to create an NPS survey in the easiest way possible with SurveySensum and also understand the importance of NPS.
So, let’s dig in!
What Is Net Promoter Score (NPS)?
NPS, short for Net Promoter Score, is a metric designed to gauge customer loyalty and satisfaction. It revolves around a single question: ‘On a scale of 0 to 10, how likely are you to recommend our product to others?’
Based on their responses, customers are categorized into:
- Promoters (score 9-10) – your diehard fans
- Passives (score 7-8) – neither your fans nor haters
- Detractors (score 0-6) – not so thrilled about you
You now understand what is NPS but why is it important? Let’s understand.
Why is NPS Important?
Here’s why NPS is important when it comes to improving customer satisfaction:
- Simplicity and Speed: NPS is a simple and quick survey that can be easily administered to customers, making it a convenient way to gather feedback.
- Predictor of Business Growth: A high NPS means good business growth. Promoters are more likely to stay loyal, increase their spending, and refer new customers, driving organic growth and reducing customer acquisition costs.
- Identifying Areas for Improvement: By analyzing feedback from Detractors and Passives, businesses can pinpoint areas that require improvement and take proactive steps to close the feedback loop in time.
- Benchmarking: NPS scores can be used to compare a company’s performance against industry benchmarks and its own historical data. This helps companies track their progress over time and identify areas that need attention.
You now understand what is NPS and why is it important, let’s now understand what type of questions you can ask in an NPS survey.
What Questions Can You Ask in NPS Surveys?
There are generally two types of questions included in an NPS survey:
1. Loyalty Question (Close-ended)
This is the heart of the NPS survey, where you ask customers to rate their likelihood of recommending your company’s products or services. This is a close-ended question and provides a quantitative answer. The customer is asked to rate on a scale of 1-10 and according to the rating they give they are placed in promoters, detractors, or neutral groups.
→On a scale of 0 to 10, how likely are you to recommend our product friend or colleague?
The ratings place customers into three groups:
- Promoters: This group of customers gives you a rating between 9-10 and they are your fans
- Passives: This group of customers gives you a rating between 7-8 and are neither sad nor happy with your product.
- Detractors: This group of customers gives you a rating between 0-6 because they are not happy with your product.
2. Follow-Up Question (Open-ended)
Once you’ve got the rating, the follow-up question digs a little deeper. It’s an open-ended question meaning customers can provide detailed feedback.
This question helps you understand the ‘why’ behind the rating. It gives customers a chance to express their feelings, share experiences, and provide suggestions for improvement. This is especially useful in understanding the ratings of detractors.
→ What’s the primary reason for the score you gave?
Don’t forget personalization. Create different questions for promoters, passives, and detractors to understand the reason behind each of the scores. For instance,
→ Promoters (9-10): Please tell us what you like most about our product.
→ Passives (7-8): How can we improve your experience?
→ Detractors (0-6): What was missing in your experience with our product?
How To Create an NPS Survey with SurveySensum?
You can create an effective NPS Survey with SurveySensum in 2 minutes with its built-in template. Here’s how –
STEP 1: Create Your Free Account on SurveySensum
Visit the SurveySensum website and click the Sign-up button to create surveys on your account anytime.
STEP 2: Choose the NPS Template
Choose the NPS survey template.
STEP 3: Customize the NPS Survey Template
Customize your NPS survey with the inbuilt template, as per your brand requirements.
STEP 4: Time to Share Your Survey
Sharing your surveys through the right channels is an important part of the process.
Identify which channels your customers prefer. This will help you boost survey response rates. For example, people in India prefer WhatsApp surveys, on the other hand, people in the US prefer email surveys and SMS surveys.
STEP 5: Create a Contact List
Now that your survey is created, share it with your customers but first create a contact list. For example, if you want to send surveys via WhatsApp then you need to create a contact list of your customers.
Now choose the list of your customers and click on ‘Send WhatsApp’.
STEP 6: View Reports on the Dynamic All-in-One Dashboard
Now it’s time to analyze, monitor and take action according to the reports.
SurveySensum provides a powerful and exclusive dashboard where you can view reports of all your surveys. You can also customize this dashboard based on your goals and objective. You can choose which part of the report you want to monitor. This is what your NPS survey dashboard will look like on SurveySensum.
You can also add reports as per your preferences that you want to view on your dashboard.
How To Calculate NPS?
You might be wondering, ‘How does this Net Promoter Score thing actually work?’ Well, it’s pretty straightforward and surprisingly simple.
And here’s the formula: NPS = % Promoters – % Detractors
Now, let’s break it down step by step:
- Promoters: Calculate the percentage of your customers who are promoters. Add up the number of customers who gave you a 9 or 10, divide that by the total number of responses, and multiply by 100. This gives you the percentage of promoters in your customer base.
- Detractors: Do the same for detractors. Count how many customers rated you between 0 and 6, divide it by the total responses, and multiply by 100. This gives you the percentage of detractors.
- NPS: Finally, subtract the percentage of detractors from the percentage of promoters. This gives you your Net Promoter Score.
Here’s how to calculate NPS with an example for better understanding:
Let’s say you conducted an NPS survey with 100 respondents, and their scores are distributed as follows:
- Promoters (9-10): 60 respondents
- Passives (7-8): 20 respondents
- Detractors (0-6): 20 respondents
Calculate the Percentages:
Promoter Percentage: (60 / 100) * 100% = 60%
Detractor Percentage: (20 / 100) * 100% = 20%
Calculate the NPS:
NPS = Percentage of Promoters – Percentage of Detractors
NPS = 60% – 20% = 40
So, in this example, the Net Promoter Score (NPS) is 40.
Act Upon Your NPS Insights
Here’s a straightforward guide to help you take action on your gathered NPS insights:
1. Analyze and Segment The Data
You have gathered your NPS feedback and now it’s time to dive deep into it and segment your data which will help you in understanding the distribution of your customer sentiments.
Segment your NPS data based on demographics, purchase behavior, or any other relevant criteria. This will allow you to identify patterns and tailor your actions to different customer groups. Create customer personas to better understand your target audience and their needs.
Also, look for trends and recurring themes in the qualitative feedback provided by respondents. Pay attention to both positive and negative comments to identify areas of strength and areas that need improvement.
2. Identify The Areas For Improvement
With insights in hand, identify the areas that could have the most significant impact on customer satisfaction and loyalty. Focus on addressing concerns or enhancing features that affect a large portion of your customer base.
Use tools like Text Analytics to analyze qualitative feedback for recurring keywords and sentiments. Categorize feedback into themes like product quality, customer service, pricing, etc.
This strategic approach ensures you’re investing resources where they matter most.
3. Close The Feedback Loop
Now that you understand where the issues are it’s time to take action to solve those issues and close the feedback loop.
- Prioritize issues based on their impact on customer satisfaction and the effort required to resolve it.
- Inform concerned departments of the issues. This ensures accountability and progress tracking. For example, if there is an issue with the product alert the product team to take charge to solve the issue.
- Break down larger actions into smaller milestones with deadlines. This allows you to track progress and maintain a steady pace toward implementation.
- Once you have resolved the issue communicate the action taken to your customer. This will ensure that your customers are aware of the changes and that they feel valued for their opinion.
Here’s an example of how a B2C company, Olay communicated the resolved issue with its customers in an unique way.
4. Monitor and Measure: Gauge the Impact
As you roll out changes based on NPS insights, continuously monitor the impact of these adjustments.
Establish KPIs to measure progress in each improvement area. Regularly track and analyze data to ensure you’re on the right track. If certain actions aren’t yielding the desired results, modify your strategies accordingly.
Creating NPS surveys using quick and convenient tools like SurveySensum helps you establish a bridge between your company and your customers.
Through the simplicity of a single question, you have the ability to get insights into what your customers are experiencing. NPS surveys aim not only to improve your customer satisfaction but also to increase your customer loyalty and decrease any potential churn.
It’s crucial to remember that NPS is not merely a measurement – it’s a catalyst for positive change within your organization. As you harness the insights from these surveys, you set a course for continuous improvement.
So, launch your surveys with SurveySensum’s NPS software and gather feedback in real time and close the feedback loop.