NPS Feedback Drives Improved Customer Satisfaction
A Customer Net Promoter Score (NPS) Survey is designed to efficiently collect information from a customer population by asking a single question, using a 0-10 scale: “How likely is it that you would recommend [company/brand] to a friend or colleague?” The answer to this question permits an immediate understanding of current customer service levels as well as the probability of referrals.
If a customer has a positive experience with an organization, it will likely lead to repeat business and good word of mouth, but a negative experience can lead to customer loss and the circulation of poor reviews. Net Promoter Score (NPS) calculates, quantifies, and tracks ‘willingness to recommend’ to understand if the overall image of a company is positive or negative.
- Increase profitability.The financial bottom line is the main business case for conducting an NPS study. More satisfied customers means increased business in both referrals and repeat clients. An NPS study ensures organizations have the information they need to effectively address any product or service failings. For this reason, organizations that deploy NPS surveys are more likely to be seen as responsive to customer needs and proactive in addressing any problems and failings. Ultimately, conducting an NPS survey can increase an organization’s profitability by ensuring they are always their customer’s first choice.
- Enhanced customer loyalty.Building a core of loyal customers is a strategy that positions a business for long-term success. In many respects, the NPS survey is like a typical customer survey; however the nature of the survey’s continuous ‘check-ins’ for all customer transactions means that customers can have confidence that any problems/issues will be addressed appropriately and in a timely manner. In this way, the NPS survey can be conceptualized as a safeguard against any potential service failings that might prematurely end a relationship.
- Immediate real-time data.An ongoing NPS survey provides access to a steady stream of data that allows you to understand how your customers perceive each transaction with your organization as they unfold. You can even receive immediate notification of any unsatisfactory experiences with Instant Email Alerts that allow you to right any wrongs before negative word of mouth can spread. By correcting problems as they arise, an organization is better positioned to preserve existing relationships and curtail any negative press that is likely to emerge as a result of a less-than-ideal encounter. Regardless of the nature of the customer relationship, responsiveness is critical, and an NPS survey can ensure you are responsive.
- Track performance over time.When examined on a weekly, monthly, or quarterly basis, an ongoing NPS survey has the potential to generate a series of customer satisfaction snapshots. These snapshots can be compared to understand peaks and troughs in service delivery. They can also be correlated to organizational events, enabling an understanding of how changes like an updated training module, update to ERP, and company expansion impact customer experience. For companies that experience some degree of seasonality in their business, this is a great way to ensure that standards do not slip during particularly busy times of the year.
- Comprehensive yet simple.The strength of the NPS survey relies on the ability to form a “big picture” assessment of the experiences of many – not just a vocal minority group. Since a typical NPS survey asks just one question, the survey is not taxing for respondents to answer. NPS surveys are typically deployed in an ongoing manner, where customers have multiple opportunities to provide feedback on their experiences. As a result, these surveys tend to have comparatively high response rates. Higher response rates permit greater certainty that the results of the survey are representative of the entire customer population as a whole. This comprehensive and robust data then permits a more in-depth understanding of the entire range of customer experience.
- Project Future Growth.The NPS score captures the word of mouth likely to emerge from a given interaction, but also reveals insights into respondents’ intentions to continue a business relationship. This information can be used to predict the volume of the business in the ensuing months and form appropriate strategies to address customer needs. By understanding the potential for growth in certain areas, organizations have the ability to proactively respond to changes in customer perceptions and demands.
- Refine, rather than Reengineer, Strategy.Knowing immediately when something isn’t working gives an organization a head start on making adjustments or changes. By continuously fine-tuning organizational strategy to address potential failings (e.g. developing additional training programs for employees, redesigning the website, changing distribution methods, or retooling products), adjustments become easier because practices or procedures are not solidified. In this way, an ongoing NPS survey helps to build a more flexible organization and helps organizations develop the potential to leverage their enhanced flexibility into a competitive advantage.
Traditionally, a Customer Net Promoter Score is calculated using an eleven point scale that ranges from 0 to 10. On this scale, detractors are defined as respondents who are likely to provide poor word of mouth about the company, promoters are likely to spread positive experiences with the company, and neutral respondents aren’t likely to share either glowing or damaging reports about the company. The score itself is calculated by subtracting the detractors from the promoters and dividing by the total number of respondents. This score is then multiplied by 100. An NPS score of +100 means that everybody is a promoter, while a score of -100 means that everybody is a detractor. Sound complicated? NBRI provides the analysis and benchmarking for you and makes it easy to understand. We also provide expert guidance on how to boost scores and obtain higher marks from all of your customers.
When you hire NBRI, you’re hiring more than a company to conduct survey research. You’re hiring a business partner with a sincere interest in the health and success of your company.
Give us a call. We’re confident that you’ll find us a valuable partner capable of fulfilling your survey research needs, and exceeding your expectations.
Net Promoter, Net Promoter System, Net Promoter Score, NPS and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.
Customer NPS Survey Case Study
A manufacturer of industrial, transmission, and distribution systems was experiencing increasing competition in its field. In order to maintain its customer base and plan for the future, it was essential to understand current levels of performance and word-of-mouth in its customer base.
An NBRI Customer Net Promoter Score Survey was deployed on an ongoing basis, and scores—assessed by various touchpoints—were tracked on a monthly basis. The data identified several departments where scores lagged behind total company performance. In conjunction with the survey data, an assessment of open-ended question feedback revealed that responsiveness was particularly problematic.
The client leveraged these insights from NBRI to take specific and targeted action to improve performance by engaging in targeted service recovery, restructuring customer service, and enhancing training. As a result of these changes, NPS scores nearly quadrupled over the next few months. While the client reaped immediate satisfaction and word-of-mouth benefits from their customers, they were also able to initiate a seismic change at the ideal time. Knowing an imminent IT implementation would be disruptive to their customer service, the client waited until scores were consistently high before beginning the implementation process. As a result, customer service suffered the fewest possible interruptions and the company’s future remains bright.
The standard NBRI Customer NPS Survey includes 1 scaled question and 1 open-ended question and may be customized to meet your organization’s specific needs.
Standard Customer NPS Survey Topics
- Customer Willingness to Recommend
Customer NPS Survey Related White Paper
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Net Promoter: Revolutionary Tool or Fad? – Recently there has been a lot of talk in the business community about Net Promoter which is supposed to be a discipline by which companies profitably grow by focusing on their customers and employees.
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