NPS reveals customer sentiment towards your business as a whole unit—your product, your service, your website, social presence, front-of-line staff, everything. Not just a once-off interaction.
It indicates the health of your business as a whole
NPS consists of one core question—"How likely are you to recommend our product/service to a friend or colleague?"—and one to two followup questions that invites customers to explain why they do (or don’t) recommend you. These questions provide insight into where your business can improve.
NPS is about the overall relationship
NPS can track change over time
NPS’s -100 to +100 scoring system is easy for busy business executives to fellow office staff to digest. And because NPS is a measure of your whole business, it’s a KPI that is relevant to everyone—not just to your executive team or service call centre.
Why ask additional questions?
• Seasonal trends.
• How any recent changes have affected customer experience.
• How different teams and departments are tracking both next to one another and on a wider industry (and global) level.
NPS surveys are quick, straightforward and can be done online, by email or over the phone. The survey rarely takes more than five minutes to complete.
On the business side, NPS breaks down your scores into three customer clusters: detractors, passives and promoters. A simple calculation determines your score. There’s no advanced formulas or analytics involved.
How do I calculate my score?
% of promoters
• Customer loyalty – use NPS
• Product/service satisfaction – use Customer Satisfaction Survey (CSAT)
• Effort to purchase – use Customer Efford Score (CES)
NPS is a globally recognised system, which makes it easier for you to benchmark against competitors and track your progress compared to the rest of your industry. Finding benchmarks within your local geographic region is also a simple matter.
The limitations of CES and CSAT
It measures the likelihood
of repeat business
A strong NPS reflects that your business is doing everything right—from the initial front-line staff to the product/service, marketing, and customer support. Every link in the chain is performing well. Likewise, a low score could indicate that there are a few kinks that need ironing out.
With NPS you can compare and uncover:
NPS is relevant to everyone
It gives direction for change and improvement
It's easy to benchmark against competitors
Aside from updating your customer sentiment, regular NPS surveys are ideal for identifying trends and tracking business performance over time. We recommend surveying your customers at least twice a year.
Without their feedback, your NPS score is just a number. Worse still, you have no way to know what you need to change to improve it.
User-friendly and inexpensive to implement
Subtract your percentage of detractors from your percentage of promoters.
CES doesn’t have the same uptake as NPS, and therefore benchmark data is difficult to come by.
CSAT is limited to a customer's last interactions with a business and is variable in terms of what it can evaluate. All up, it’s near impossible to establish industry and country benchmarks with it.
What do you want to measure?
One of the key benefits of the Net Promoter Score (NPS) is that it measures customer loyalty and therefore the likelihood of gaining new and repeat business. This measure is useful for forecasting business growth, cash-flow, as well as assess the health of your brand and overall customer satisfaction.
It provides the big picture
% of detractors
CSAT and CES surveys are sent when customers buy or use a product or service. It means they're based on a customer’s last interaction with a business and only capture short-term customer satisfaction data—not the customer’s overall relationship with your business.