Expanding your customer base is critical to growing your business, and it’s no secret that a referral from a loyal customer is one of the fastest and cheapest ways to do it. The net promoter score (NPS) is a widely used metric that reveals how likely customers are to promote or recommend a business to others through a survey. When done correctly, your NPS survey results can predict your business growth.
A net promoter score survey is essentially a customer loyalty survey – but what influences customer loyalty? It all starts with how happy your customers are with your products, services and the overall experience you provide. Well-crafted NPS survey questions offer insight into how to optimize your customer experience to drive more sales in the long run.
In this blog, we discuss: 1) what is net promoter score?; 2) what is a good NPS score?; and 3) how to calculate NPS. We also provide expert insight on increasing your NPS, how to use net promoter score to boost your marketing strategy and getting the help of a professional net promoter score service.
What Is Net Promoter Score?
Net promoter score (NPS) measures your customers’ satisfaction and their willingness to recommend you to others. Net promoter score survey questions vary but typically revolve around one question: “On a scale of 1 to 10, with 10 being the highest, how likely are you to recommend [company, product or service] to your friends or colleagues?”
NPS survey respondents are grouped based on how they score you:
• Promoters (9 – 10): customers who are loyal and highly likely to recommend you
• Passives (7 – 8): neutral customers who you can lose to your competitors
• Detractors (0-6): unsatisfied customers who are not likely to recommend you
A net promoter score service uses online survey software to tell you how many promoters, passives and detractors you have. Net promoter score software or NPS software automatically processes your NPS survey questions and results and determines the percentage of promoters, passives and detractors among your respondents.
How To Calculate NPS
The percentage of promoters minus the percentage of detractors is your net promoter score. Passives are excluded from the calculation – and yes, how to calculate NPS is that simple.
If 80 percent of your respondents are promoters and 20 percent are detractors, then your NPS is 60 (expressed as an integer, not a percentage). If 30 percent are promoters and 50 percent are detractors, your NPS is -20.
Now that you know what NPS is and how to calculate it, the next step is to answer this: What is a good NPS score to evaluate your position?
What Is a Good NPS Score?
While referring to NPS as “NPS score” is redundant, using NPS and NPS score interchangeably is accepted. Net promoter score companies say a “good” NPS is between 0 to 100, indicating you have more promoters than detractors (or no detractors at all). On the other hand, you want to avoid an NPS of zero to -100 or having more detractors than promoters and possibly no promoters at all.
Net promoter score companies increase your NPS through strategies that retain your promoters, convert your passives into promoters, and minimize or mitigate detractors.
Why NPS Score Matters
Your NPS survey results measure your customer satisfaction and indicate how well your business is doing from your customer’s perspective. You can make better business decisions when you know what your customers think and how they feel about your brand. NPS survey tools extract feedback vital to improving your customer experience.
NPS also helps you grow your business by providing insight into the lowest cost of retaining your clients and the most profitable approach to acquiring new ones. Net promoter score companies help you predict your business growth using NPS.
5 Net Promoter Score Survey Best Practices
Quantitative data from your net promoter score survey is an excellent gauge of your brand perception and loyalty. But qualitative data is also crucial in making the most of your customer loyalty survey. The score gives you a high-level idea of how you’re doing, but your customer’s raw feedback is what you can actually use to improve your business.
Let’s dive into best practices on leveraging NPS and NPS survey questions:
1. Send Out Routine NPS Surveys
NPS gives you an overall view of your customer satisfaction and loyalty compared to ordinary online survey services that aim to assess specific interactions. It makes sense to use online survey tools to send your NPS survey in the same month every year to use a consistent time frame when analyzing your NPS.
2. Assess Your NPS Survey Timing and Frequency
You also need to consider the realities you face at the time you intend to survey your customers. For instance, it might not be best to send your survey after your business has recently received negative media attention. To avoid unnecessary bias and ensure your customers judge you based on your products and services, you might want to wait it out. The timing of your NPS survey will depend on what you hope to get out of it.
3. Customize Your Surveys to Your Audience
Online survey software offers customer relationship management (CRM) tools and online survey tools in one. This means you can have precise data on the customers you’re targeting for a particular survey: demographics, stage in the customer journey, products they’ve bought and more. This information will help you gather enough respondents for statistically significant and high-quality survey results.
4. Use Net Promoter Score Software to Your Advantage
Online survey software makes preparing, tracking and analyzing your survey campaigns simpler and faster. You can easily schedule your campaigns, tweak your survey recipients, switch from an email campaign to an SMS campaign and more. Net promoter score software or NPS software gives you a full report on your promoters, passives and detractors to aid your analysis. Online survey services can also make recommendations based on your reports.
5. Gather Quantitative and Qualitative Data
Knowing your NPS is vital, but understanding the “why” behind it is just as important. Be sure to both ask close-ended and open-ended questions carefully tailored to your target audience. Asking for your customer’s attention is a tall order, so it’s best to A/B test your questions to maximize the survey opportunity. Asking the right net promoter score survey questions holds significant power – you can take the guesswork out of your marketing strategy and give your customers the experience they’re looking for.
How To Use Net Promoter Score in Your Marketing Strategy
Now that you’ve answered what is net promoter score?, you need to use it to your advantage. Your net promoter score survey questions should produce helpful feedback that you can use to improve your marketing strategy’s effectiveness. Online survey services use NPS software to turn your NPS results into usable and useful information.
Here’s how to use net promoter score to guide your marketing approach:
1. Understanding Your Target Audience
Every good marketer knows understanding your target audience is a continuous process. Behavior changes, preferences change and trends come and go. NPS is a very versatile metric that can teach you anything you want to know about your customers. NPS survey results tell you what marketing channels to focus on, what content your audience is interested in and what to avoid. You can even improve on or develop new brand offerings based on how your brand message resonates or how your audience receives your value proposition.
2. Improving Your Customer Experience
Measuring the success of your marketing campaigns can be challenging – but online survey tools like NPS provide an excellent benchmark. Quantifying your customer experience allows you to fine-tune your marketing strategy based on what’s working and what isn’t. Continuously improving your customer experience has a snowball effect on your customer loyalty and retention.
3. Showcasing Your Positive Feedback
Review generation experts will tell you that great customer reviews lead to increased trust and sales. A high NPS would mean something to businesspeople, but it’s honest feedback that ordinary customers respond to. With their permission, you can turn your customer’s survey responses into testimonials for your website and social posts for more people to see. This can give passive followers and potential customers the push they need to engage with your business.
Work With an Online Survey Company To Maximize NPS Survey Tools
Prioritizing customer satisfaction drives customer loyalty and proactively showcasing your positive feedback helps grow your business. With an expertly crafted customer loyalty survey and online survey tools on your side, you can improve your customer experience and get the ball rolling faster than you thought possible.
Working with an online survey company means having industry professionals execute your NPS survey efficiently and effectively. You have extra hands to help thank your promoters, address your detractors’ concerns and maintain a positive brand perception – where responding to your online reviews (good and bad) and monitoring your trust ratings are crucial.
Rize Reviews is a reputation management and online survey company increasing trust and building customer loyalty for businesses of all sizes. We use NPS survey tools to collect responses, analyze your results and provide recommendations on approaching each NPS group (promoters, passives and detractors). We also develop a follow-up plan to increase your NPS and leverage your positive feedback.
Contact Rize Reviews to learn more about how our 100 percent done-for-you net promoter score service can boost your marketing strategies and grow your business.