Customer Experience

How to Improve Customer Retention with NPS Surveys?

Mar 10, 2023

8 mins read

Manisha Khandelwal

Losing customers due to poor customer service can be detrimental to your company’s success. 

According to Zendesk, a shocking 82% of customers stop doing business with a company after receiving terrible customer service. 

This not only results in lost revenue, the negative reviews, and social media posts can damage your brand’s reputation, ultimately affecting your bottom line. 

To prevent such negative outcomes, using tools such as Net Promoter Score (NPS) can help you actively gather and analyze customer feedback to improve customer retention and understand their experiences. This will help you identify areas for improvement and work towards retaining your customers. 

Additionally, retaining existing customers is much more cost-effective than acquiring new ones, costing five times less.

Investing in customer retention strategies is, therefore, a smart move for any business that wants to grow and succeed.

But how does NPS help retain your customers?

Customer retention is a critical aspect of business success that involves keeping your existing customers satisfied with your products, services, or brand. 

A high customer retention rate can lead to cost-effective and efficient growth for your business. 

In fact, a study by Harvard Business Review found that a 5% increase in retention rate can result in a 25% increase in profits. 

So, how can you improve your customer retention rates?

To effectively retain your existing customers, measuring NPS can be a game-changer. 

With a single NPS question – “how likely would you recommend our brand to your friend and colleague?” – and an open-ended follow-up question asking ‘why’, you can gain valuable insights into your customers’ expectations and experiences. 

→ Know when to send an NPS survey to generate responses!

In this blog post, we will explore customer retention strategies that can help you keep your customers happy and loyal and ultimately contribute to the growth and success of your business. So, let’s dive in!

5 Strategies to improve customer retention with NPS surveys

These simple yet effective 8 strategies will help you improve your customer retention rate with NPS surveys. Let’s get started. 

1. Personalize NPS surveys to retain customers

Personalizing NPS surveys is an effective way to retain customers and make them feel valued and appreciated, increasing the likelihood of them returning to your brand.

To personalize the different types of NPS survey, you can use the customer’s name in the survey or tailor the questions to their specific experience. 

For example, if the customer recently made a purchase from your website, you can ask specific questions related to their online shopping experience. By doing so, you show that you are interested in their experience and want to improve it.

Transactional NPS surveys are a great way to personalize the survey and gather feedback in real time. 

These surveys are sent immediately after a customer has completed a transaction or interaction with your brand. And allows you to capture feedback when it is most relevant and fresh in the customer’s mind.

By showing that you value their feedback and are committed to improving their experience, customers are more likely to feel loyal to your brand and return for future purchases.

Suggested Read: Discover what NPS survey questions you should ask in your next NPS survey

2. ALL ears towards analyzing the received customer feedback

Gathering customer feedback is crucial, but analyzing it is just as important. To truly understand your customers’ needs and expectations, you need to listen to their voices and dive deeper into their feedback.

Make sure your feedback tool is equipped for more than just an NPS scale question and can measure open-ended feedback, as this type of feedback contains valuable insights. 

Consider using an AI tool like SurveySensum’s Text and Sentiment analysis to analyze your feedback. With this tool, you can create tags and categorize feedback by department, features, services, and more. The AI machine will then curate a list of the most common pain points based on votes.

Prioritize the issues that require urgent attention and reach out to detractors to understand their issues and take action. It’s important to let your customers know that you’ve heard them and are actively working to resolve their issues, just like Olay did in their recent campaign.

How Olay listened to its cutsomers and improved customer retention?

3. NPS surveys can direct the development of features of products

To develop the best product in the market, it’s important to incorporate NPS surveys into your product development process.

In the NPS survey, make sure to include open-ended questions to understand the reasons behind the customers’ likes or dislikes about the product, what works best for them, and where they face difficulties while using it.

Once you’ve gathered this feedback, use it to create a roadmap to improve your product. 

Consider your customers’ recommendations, share the feedback with your team, prioritize the most important features, and add them to the roadmap. 

Customers will appreciate a product that meets their needs and makes their lives easier, which will improve customer retention rates and reduce the likelihood of them switching to competitors.

→ Here’s more about what is a good NPS score!

4. Turn your passives into promoters

Passive customers are a valuable asset to any business, and it is crucial to prioritize them to turn them into loyal promoters. While they may not be as enthusiastic as promoters, they still have valuable feedback to offer. Here are some additional tips to help you take good care of your loyal customers:

  1. Show genuine appreciation: Let your customers know that you value their business by sending personalized thank-you messages or offering exclusive discounts or perks. This will make them feel special and encourage them to continue doing business with you.
  2. Stay in touch: Keep your customers engaged by sending regular newsletters, updates, and offers via email or social media. This will help you stay top of mind and build a lasting relationship with them.
  3. Listen to their feedback: Encourage your customers to share their feedback and suggestions, and make sure you take their opinions into account when making business decisions. This will help you improve your products and services and show your customers that their opinions matter.
  4. Resolve issues quickly: If your customers have any issues or complaints, make sure you address them promptly and professionally. This will help you retain their trust and loyalty, even in difficult situations.

By actively engaging with passives and addressing their concerns, you can convert them into promoters or even brand advocates and improve overall customer satisfaction.

5. Give loyalty points to your loyal customers a.k.a. promoters

Do you know that loyal customers are not only more likely to repurchase and forgive, but they also spend more money and bring in new customers? 

According to the Temkin Group, loyal customers are 5 times as likely to repurchase, spend 67% more on average, 4 times as likely to refer, and 7 times as likely to try a new offering.

So what can you do with your promoters?

  • Find areas for improvement: To leverage customer feedback effectively, you can conduct and calculate NPS to understand why your customers choose your brand over others. This will help you identify your strengths and areas for improvement and tailor your offerings to meet the needs of your loyal customers.
  • Get word of mouth: In addition to continuing to provide excellent service, you can also reward your loyal customers for their referrals and participation in loyalty events. By offering loyalty points, discounts, or other incentives, you can encourage your customers to spread the word about your brand and drive new business.
  • Build brand reputation: To amplify the impact of customer feedback, ask your satisfied customers to share their positive experiences on social media and other review platforms. These testimonials can be valuable marketing assets and help build your brand’s reputation.
Suggested Read: What value does the NPS Score have in 2024?

By taking these steps to leverage customer feedback and build customer loyalty, you can create a strong foundation for sustainable growth and success for your business.


To Conclude:

Research shows that 85% of customers churn due to poor service that could have been prevented, highlighting the crucial role of customer experience in business growth. 

To excel in customer experience, it is important to ensure that your customers are satisfied with your products, services, and brand and remain loyal to your business.

To achieve this, leverage NPS tools like SurveySensum to create NPS surveys that identify issues in real-time, develop customer-desired features, and effectively close the feedback loop. Also, the tool helps you with trend analysis, historical trend analysis, and NPS benchmarking. With SurveySensum, you can deliver the best possible customer experience and drive business growth.

→ Know how to boost NPS in Automotive by closing the feedback loop!


Manisha Khandelwal

Senior Content Marketer at SurveySensum

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