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Net Promoter Score (NPS) is popular across a wide range of industries because it offers a simple, yet effective way to measure customer loyalty and satisfaction with just one question. Its ease of use, combined with its ability to provide actionable insights, makes it a valuable tool for businesses looking to improve customer experience and drive growth.

NPS provides valuable insights into brand strength, referral potential, and customer churn. Additionally, closing the feedback loop with customers and acting on their NPS responses can empower leaders to drive meaningful changes across the organization.

NPS is for any organization, regardless of size or industry, that wants to understand and improve customer loyalty. It’s particularly useful for companies looking to measure customer sentiment, identify brand advocates, and pinpoint areas for improvement. Whether you’re in retail, technology, healthcare, or any other sector, NPS provides a straightforward and actionable way to gauge how your customers feel about your brand and to drive strategic decisions based on their feedback.

The survey starts with a straightforward question: “How likely are you to recommend our product or service to a friend or colleague?” Respondents rate their likelihood on a scale of 0 to 10, and based on their scores, they are categorized as

Promoters (9-10) are highly satisfied customers who are likely to recommend the brand to others, driving positive word-of-mouth and contributing to growth.

Passives (7-8) are customers who are satisfied but not enthusiastic enough to actively promote the brand, making them vulnerable to competitive offerings.

Detractors (0-6) are customers expressing dissatisfaction and posing a risk of negative word-of-mouth and potential churn.

After giving a score, customers are prompted with an open-ended follow-up question, allowing them to explain the reasoning behind their rating. The NPS score reveals the “what,” while the text feedback uncovers the “why.” Customers can then answer any additional questions you’ve set up before being directed to a personalized Thank You page.

Sample NPS question:

Sample NPS Follow up question:

The NPS formula: NPS = % of Promoters - % of Detractors

Let's break that down:

The most ideal time to send NPS surveys depends on whether you’re using a transactional or relational approach, each serving a distinct purpose.

Transactional NPS surveys should be sent shortly after a key interaction, such as after a purchase, customer support call, or product delivery, to capture immediate feedback and assess satisfaction with that specific experience. The purpose here is to understand the customer’s reaction to a particular event or touchpoint.

Relational NPS surveys are sent at regular intervals, like quarterly or annually, to measure overall customer sentiment and loyalty over time. The goal of relational NPS is to gauge the broader relationship between the customer and your brand, offering insights into long-term loyalty and identifying trends.

Combining both approaches gives you a well-rounded view of customer satisfaction and helps pinpoint areas for both immediate and strategic improvements.

Here are some tips to ensure your NPS program is optimized for gathering high-quality, actionable feedback.

Closing the loop in the NPS process involves responding to customer feedback, particularly from Detractors and Passives, to address their concerns and improve their experience.

This process typically includes...

Closing the loop demonstrates to customers that their opinions are valued, helps to recover potentially lost customers, and can turn dissatisfied customers into loyal advocates. Additionally, it provides valuable insights for internal teams to drive continuous improvement and foster a customer-centric culture within the organization.

Sharing NPS feedback with your team is a crucial step in turning insights into action. By distributing customer feedback across relevant departments, everyone in the organization becomes more aware of customer sentiments and the areas that need attention.

This transparency fosters collaboration and empowers teams to make data-driven decisions that enhance the customer experience. Additionally, sharing positive feedback with the team can boost morale, recognizing the hard work that leads to satisfied customers.

Ultimately, when everyone is aligned with customer feedback, it helps create a more cohesive, customer-focused organization, driving continuous improvement and growth.

Tying NPS to other metrics, such as customer churn, lifetime value, or customer support interactions, provides a more comprehensive view of your customer experience. By linking NPS with these key performance indicators, you can uncover deeper insights into the drivers of customer satisfaction and loyalty.

For example, understanding how NPS correlates with churn rates can help identify at-risk customers, while connecting it with customer lifetime value can highlight the impact of loyalty on revenue. This integration enables you to make more informed decisions, prioritize initiatives that have the greatest impact, and ultimately drive better business outcomes.