How to Measure Your NPS Customer Experience?

Net Promoter Score (NPS) customer experience metric measures customer loyalty and satisfaction by gauging the likelihood of referrals. It provides businesses with actionable insights to enhance engagement and strengthen customer relationships.

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How important is the Net Promoter Score (NPS) in measuring customer experience (CX)? Are businesses using this metric to improve customer satisfaction and loyalty?

The repeat purchase rate of “totally satisfied” customers is 3 to 10 times higher than that of “somewhat satisfied” customers. Hence, delivering exceptional customer experience is crucial for businesses to stand out.

Many companies rely on NPS as a key indicator of customer satisfaction. But, the impact of NPS on CX goes beyond just a simple score – it can provide valuable insights that shape business decisions and strategies.

Understanding the impact of NPS in CX is essential for businesses looking to build stronger relationships with their customers.

Let us explore the significance of NPS in measuring CX and how businesses can effectively leverage this metric to drive growth.

Table of Content

1 What is Net Promoter Score (NPS)?
2 Importance of NPS in Measuring Customer Experience
3 How to Build an NPS Program for Measuring Customer Experience ?
4 How to Use NPS to Improve the Customer Experience for Detractors ?
5 Strategies to Improve the Customer Experience for Passives
6 Steps to Improve the Customer Experience for Promoters
7 List of Questions for NPS Surveys
8 Better CX leads to Better NPS
9 FAQs on NPS User Experience

What is Net Promoter Score (NPS)?

Net Promoter Score or NPS acts as a tool used by companies to measure customer loyalty and satisfaction. It is based on the premise that customers can be divided into three categories: Promoters, Passives and Detractors.

Promoters are loyal customers who are likely to recommend a company to others.
Passives are satisfied but unenthusiastic customers.
Detractors are unhappy customers who are likely to spread negative word-of-mouth.

Calculating NPS is a straightforward process that involves asking customers a single question: “On a scale of 0-10, how likely are you to recommend our company to a friend or colleague?” Based on their responses, customers are categorized into the three groups mentioned above.

To calculate NPS, you first need to determine the percentage of responses in each category.

Promoters are those who rate the company a 9 or 10,
Passives rate the company a 7 or 8, and
Detractors rate the company a 0-6.

Next, subtract the percentage of Detractors from the percentage of Promoters. It will give you a score between -100 and 100, with a higher score indicating higher customer satisfaction.

For example, if 70% of responses are Promoters, 15% are Passives and 15% are Detractors, the NPS would be 55 (70%-15%=55).

Importance of NPS in Measuring Customer Experience

Tracking NPS scores help businesses to identify areas for growth. The importance of NPS in measuring customer experience cannot be overstated.

Increase customer loyalty: NPS helps businesses gauge how loyal their customers are. Customers who are willing to recommend a business to others are more likely to be repeat customers and generate positive word-of-mouth referrals.
Higher customer satisfaction: The NPS customer experience provides insights into how satisfied customers are with a company’s products or services. A high NPS score indicates that customers are happy with their experience, while a low NPS score signifies areas for improvement.
Benchmarking: NPS customer experience metric allows businesses to benchmark their performance against industry standards. By comparing NPS scores with other companies, businesses can identify areas where they excel and areas where they need to improve.
Feedback for improvement: Feedback gained using NPS is valuable for businesses looking to make improvements to their products or services. By analyzing the responses from customers, businesses can identify pain points and address them effectively.
Predictive indicator: NPS has been shown to be a strong predictor of future business growth. Customers who are willing to recommend a business are more likely to make repeat purchases and become loyal brand advocates.

How to Build an NPS Program for Measuring Customer Experience ?

If you want to understand how satisfied your customers are with your products/ services. NPS programs can be a valuable tool. Here are the steps how it can measure customer experience:

How to build an NPS program for measuring CX

1. Set Clear Objectives

Before starting your NPS program, you need to define what you want to achieve.

Are you looking to improve customer satisfaction, increase customer retention, or identify areas for improvement? Setting clear objectives will help guide your NPS program and ensure you get the most out of the feedback you receive.

Best practices:

Make sure your objectives are specific, measurable, achievable, relevant and time-bound (SMART) to track progress effectively.
Share your objectives with key stakeholders in your organization to ensure alignment and commitment to the NPS program.

2. Choose the Right Timing

When implementing an NPS program, it’s important to ask for feedback at the right time. Sending surveys too soon after a customer interaction may result in inaccurate responses, while waiting too long may cause customers to forget their experience.

Best practices:

Avoid sending surveys during peak times or holidays when customers may be too busy to respond.
Consider automating the survey process to ensure timely delivery and consistent data collection.
Timing is key when it comes to sending out NPS surveys.
Send them after a significant interaction with your brand, such as after a purchase, customer service interaction, or product usage.

3. Design an Effective Survey

Keep your NPS survey short and simple to maximize response rates. Include the NPS question, followed by an open-ended question to gather additional insights from customers. Customize the survey to reflect your brand’s tone and style to ensure a positive customer experience.

Best practices:

Include an open-ended follow-up question to gather qualitative feedback and insights into the reasons behind customers’ ratings.
Test your survey with a small group of customers before launching it to ensure clarity and effectiveness.

4. Analyze and Act on Feedback

Once you start receiving feedback from your NPS surveys, analyze the results to identify trends and areas for improvement.

It is important to pay attention to both the Net Promoter Score itself and the qualitative feedback provided by customers. Use this information to make data-driven decisions and take action to address any issues raised by customers.

Best practices:

Segment your NPS data by customer demographics or behavior to gain deeper insights.
Develop action plans based on NPS feedback to address areas for improvement and enhance the customer experience.
Involve cross-functional teams in the analysis process to ensure a comprehensive and collaborative approach to improving customer experience.

5. Communicate Results and Take Action

Share the results of your NPS program with key stakeholders in your organization to create visibility and accountability.

Celebrate successes and communicate areas for improvement to drive change. Make sure to follow up with customers who provide feedback to show that you value their input and are committed to improving their experience.

Best practices:

Implement a feedback loop to ensure that NPS insights are continuously used to drive improvements in customer experience.
Communicate the impact of customer feedback on business decisions and demonstrate a commitment to listening to customers.
Follow up with customers who have provided feedback to show that their input is valued and that changes are being made based on their suggestions.

How to Use NPS to Improve the Customer Experience for Detractors ?

NPS (Net Promoter Score) metric focuses on satisfying promoters (customers who are likely to recommend your business), it is equally important to address the concerns of detractors (customers who are unhappy with your service).

How to use NPS to improve the CX for detractors

Identify the reasons for low NPS scores: Try to understand why customers are unhappy. It could be due to poor customer service, product issues or any other reason. By analyzing the feedback provided by detractors, you can pinpoint the areas that need improvement.
Reach out to detractors: It is important to reach out to detractors to gather more detailed feedback. It could be done through surveys or emails. By showing that you value their feedback and are committed to addressing their concerns, you can turn detractors into promoters.
Take action to address issues: Based on the feedback received from detractors, it is important to take concrete actions to address the issues identified. It could involve enhancing product quality or implementing new processes to better meet customer needs.
Follow up with detractors: After taking action to address the issues identified by detractors, it is crucial to follow up with them to ensure that the changes have made a positive impact. It could involve sending a follow-up survey or reaching out personally to check in on their experience.

Strategies to Improve the Customer Experience for Passives

Passives do not actively promote your business, but they also do not have any negative feelings. Still, they are at risk of being swayed by competitors if their experience doesn’t improve.

Strategies to improve the CX for passives

Engage with passives directly: Reach out to passives through surveys, emails, or phone calls to understand why they are not fully satisfied with your product or service. Listen to their feedback and take actionable steps to address their concerns.
Provide personalized recommendations: Use the feedback from passives to tailor your products or services to better meet their needs and preferences. Offer personalized recommendations or promotions to show that you value their business.
Enhance communication channels: Improve your communication channels to keep passives informed about new products, promotions, or updates. Engage with them through social media, email newsletters, or other digital platforms to stay top-of-mind.
Offer incentives for referrals: Encourage passives to become promoters by offering incentives for referrals. Provide discounts, rewards, or exclusive offers for customers who recommend your business to others.
Focus on customer experience: Prioritize customer experience by providing excellent customer service, personalized interactions and quick resolutions to any issues or concerns. Ensure the passives feel valued every time they interact with your brand.

Steps to Improve the Customer Experience for Promoters

Promoters are customers who are highly satisfied with your product or service and are likely to recommend it to others.

Show appreciation: Promoters are your biggest fans, so make sure to show them your appreciation. Send them a personalized thank you note, offer them special discounts or promotions, or simply reach out to them to express your gratitude for their support.
Encourage referrals: Promoters are more likely to refer new customers to your business, so make it easy for them to do so. Provide them with tools or incentives to refer friends or family, such as referral codes or discounts for both the referrer and the new customer.
Gather feedback: Promoters can provide valuable feedback on what they love about your product or service. Use this feedback to identify areas for improvement and incorporate it into your overall customer experience strategy.
Engage with them: Keep in touch with your promoters on a regular basis. Engage with them through social media, email newsletters, or exclusive events to maintain a strong relationship and continue to strengthen their loyalty.
Personalize the experience: Tailor your interactions with promoters based on their preferences and past interactions with your business. Offer personalized recommendations or rewards to make them feel valued and appreciated.

List of Questions for NPS Surveys

In order to gather the most useful information from these surveys, it’s important to ask the right questions.

Better CX leads to Better NPS

Focusing on improving customer experience (CX) can have a direct impact on your Net Promoter Score (NPS). By delivering better CX, you are more likely to create satisfied and loyal customers who will not only continue to support your business but also recommend it to others.

The positive word-of-mouth advertising can lead to increased brand awareness and growth in customer acquisition. Investing in CX improvements is not only beneficial for your current customers but also for the long-term success and profitability of your business. Better CX truly does lead to better NPS.

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Neeti Singh

FAQs on NPS User Experience

Why use NPS for measuring customer experience?

NPS is an effective tool for measuring customer experience because it provides a simple way to gauge customer loyalty and satisfaction. By asking customers how likely they are to recommend your company to others, you can quickly assess their overall satisfaction and identify areas for improvement.

When should I send an NPS survey?

When it comes to sending an NPS survey, timing is key. You’ll want to send the survey shortly after a customer has interacted with your company, such as after a purchase or customer service interaction. This way, the experience is still fresh in their minds and you can capture their feedback while it’s most relevant.

How should I distribute my NPS survey?

There are several ways to distribute an NPS survey, including email, SMS, website pop-ups, or even through a phone call. The key is to choose a method that is convenient for your customers and easy for them to respond to. Be sure to follow up with reminders for those who haven’t responded initially to improve your response rate.

How does the Net Promoter Score system work?

The Net Promoter Score system asks customers to rate their likelihood of recommending your company on a scale of 0-10. Based on their response, customers are categorized into three groups: promoters (9-10), passives (7-8) and detractors (0-6). The NPS score is then calculated by subtracting the percentage of detractors from the percentage of promoters. This score gives you a clear indication of how likely your customers are to recommend your business.