Find out the level of customer loyalty with one number. Find out how willing your customers are to spread the good word about your brand.
This article is useful for:
Create a survey for free
Use specific question type for NPS
Combine NPS with other question
Share your survey in multiple channels
Observe results in real time analysis
“I don't have time, neither human resources, nor money to conduct extensive surveys.” SMB marketer
Are you searching for an easy way of mapping your customer loyalty? You need to know your situation on the market? Net Promoter Score (NPS) is a very nice and telling indicator. Ask your customers one question and get the big picture. Would this work for you? Read more.
Customer experience is what counts in this era. Not just the product itself or the price. People evaluate the purchase as a whole (staff in the shop, online support, delivery, packaging, user friendly environment of the e-shop, values of the brand, eco-friendly and sustainable production and much more).
The better the customer experience is, the higher the customer loyalty grows. How can we define customer loyalty? Customers are loyal when they buy your product or use your service repeatedly and on top of that are willing to recommend you to others. This is the point of NPS metrics
How likely would you recommend our product/service to your friends?
This magical question brings you priceless data. In every industry, on every continent.
How to measure NPS score?
After your customer had experience with your purchase, ask him the NPS question in an online survey. The customer then impulsively rates their experience on a scale of 0 to 10, with 0 representing "definitely do not recommend" and 10 representing "definitely recommend". There are three groups of customers according to their evaluation:
1-6 Detractors: unhappy customers who are not afraid to speak up about their negative experiences. The opinions they share might damage your brand.
7-8 Passives: customers who are satisfied but not so enthusiastic. They don’t spread negative information about you but they'll switch to a competitor without hesitation.
9-10 Promoters: Loyal and enthusiastic customers who will continue to buy from you, happily tell others about it and support your growth.
Easy example: You conducted an NPS survey among 10 respondents and got these results: 1,1,2,4,5,6,6,7,8,10. The average is 5 (50%). You may think that an average score of 5 out of 10 is not bad. However, that is not the Net Promoter Score. NPS score is steeper.
How to calculate NPS score?
Back to the first example. See in the results, we have 7 detractors (ie. 70% of the total count), 2 passives (ie. 70% of the total count) and 1 promoter (ie. 10% of the total count). When we calculate NPS, we subtract the percentage of detractors from the percentage of promoters. In this case we get - 60 % as a result. That is not very positive, isn’t it? A usual average of 5 out of 10 doesn't sound great, but it's survivable. But -0,6 out of 10 is already a rather unpleasant awakening to reality.
That is, however, what NPS should do for you. Someone who rates you average or worse probably won't promote you (passives and critics). They won't be loyal after all. Only promoters will stay with you for more than one purchase and also persuade others to buy your product. So you need to work on yourself, try harder, improve something to turn critics and passives into promoters over time. Here are few tips what you could do to increase customer loyalty:
The first example showed a survey conducted only with 10 respondents so you could get the numbers easily. Usually, you conduct such surveys among more respondents. Look at another example. The survey sample is more realistic and the results are more positive.
What can you do with the results?
NPS surveying brings the best value when carried out regularly. Does your company have more subsidiaries? You can measure NPS in each of them and then compare it. Have you recently implemented any significant changes? Track the evolution of the NPS indicator overtime and observe whether the change has had an impact on customer loyalty. If the NPS curve drops suddenly, you can take it as an indicator of a problem that you need to identify and solve. It should be in your best interest to solve this problem before your customers flee from you to your competitors.
A number of companies have shown a direct correlation between performance and high NPS, which is logical because the more customers you have, the better the company is doing. So we can describe a direct line between loyalty growth and company growth.
If you notice remarkably positive NPS values, shout it out! Show all your customers how loved your brand is.
Only NPS won’t save you
As we mentioned at the beginning, NPS is a very easy metric, it does not go in-depth. If you really struggle with something, NPS will only show red numbers. The cause and concrete details need to be found out separately.
One might also wonder if the answers from your customers are really honest - if they would really recommend your product to their friends. This “one question survey” is so short that we cannot be sure about how much time or thought respondents have given their answers.
However, NPS can be such an easy and fast research. Therefore it is used by more and more companies. In addition, the metric is dealing with customer experience, not only with finances. Customer loyalty is a very subjective topic and NPS helps us turn it into numbers.
Combining NPS with other questions
If your respondents have more space and time, don’t hesitate to combine the NPS question with an open-ended question. Ask them to describe the answer from the first NPS question. What is the reason to recommend or not to recommend your brand or service?
You will have to go through responses to open-ended questions individually, however, these honest responses can point at a specific problem that you need to uncover and solve. Or you can find other reasons why your customers like your brand. That is what going in detail of the NPS survey is about.
How to create a NPS survey?
Question types in Survio include a specific question type called Net Promoter Score. The survey can be ready in a minute, the survey builde is very intuitive. Watch the short video and you’ll see.
Try to fill out our NPS survey to see what it looks like. You can create a similar survey and share it:
We believe that collecting data to make better decisions makes so much sense in this era. Gathering heaps of data isn't a guarantee of victory over your competition. Nowadays, it is not difficult to obtain data. The winner is the one who is able to analyse and interpret the data better and faster. Survio can be your helping hand in this. The data collection is super easy and you don’t have to process it by yourself. Survio generates automatically a profesional and modern analysis. You can watch the results in charts and tables in real time. Just take it as a springboard for making data-driven decisions.