Did you know 68% of consumers are willing to pay more for products from brands that offer good customer experiences?
If you’re a business owner, whether an SMB or a large enterprise, you should know the importance of keeping customers satisfied.
There are various metrics available that help you quantify and measure customer satisfaction and loyalty.
Net Promoter Score, or NPS, is one popular type of customer satisfaction metric. NPS uses surveys to understand how likely customers are to recommend your company’s product or service to others.
In this article, we will explore why NPS surveys are important and how to create your own NPS survey.
Why are NPS surveys important?
A Net Promoter Score survey can prove invaluable to your business for two main reasons. These reasons are:
1) Understanding customer loyalty and customer satisfaction
A business cannot thrive without loyal customers. Customers remain loyal to your company if they are happy and satisfied with your products and services.
But, how do you understand if your customers are happy? The answer is simple – a net promoter score (NPS) survey!
NPS surveys are crucial for all businesses. Having a good NPS score means you don’t have to worry about acquiring new customers.
The cost of acquiring a new customer or customer acquisition cost (CAC) is more than retaining an existing customer.
2) Segmenting your existing customer base
The business environment is already quite competitive with new start-ups being launched every day. Thus, it’s important for your business to hold on to its existing customers without losing out to competitors.
However, you can only keep track of your existing customer base if you conduct regular NPS surveys.
With NPS Surveys, you can categorise your customer base into three categories – detractors, passives and promoters. Your NPS score thus allows your business to diagnose problem areas and understand customer needs.
With an NPS score, you can move towards turning passives into promoters and improving the experience for detractors.
How to create an NPS survey?
Although creating an NPS survey might at first appear challenging, it’s actually quite simple to do.
Here’s how you can create an NPS survey of your own in 2-easy steps:
1) Define your objective
When creating an NPS survey, it’s crucial that you first decide your objectives for said survey. By defining your objectives, you can determine what your NPS survey’s main focus should be.
Furthermore, you can then use these objectives as a guide when designing your NPS survey and choosing questions.
2) Customise the survey for your business
The first step you need to do is create an NPS survey which is customised to your business.
Give an appropriate title to the survey and give a brief description to explain its significance to your customers. Most importantly, you need to decide the questions that you want to ask.
There are many ways in which even one question can be framed. For example:
- How likely are you to recommend us to your friends and family?
- On a scale of 0 to 10, how likely are you to recommend us to others?
- How likely are you to recommend our product to others?
Your question might either ask about a specific product or service or about the customer experience as a whole. It is important that you customise the questions for your company.
If you choose to have more than one question in the survey, it may be complicated to calculate the NPS score.
3) Choose a mode of survey distribution
There are several ways by which you can distribute your survey.
- On-site surveys: These show up directly on your company’s website.
- Surveys via email: These surveys are sent via email to your customers.
- In-app surveys: If your company has its own application, you can use in-app surveys as well.
- WhatsApp Marketing: Surveys can be carried out over WhatsApp as well.
Also read, Total Addressable Market (TAM): What is it and why does it matter for your business?
Important Factors For Successful NPS Surveys
If you’re a business owner, you must keep the following things in mind when you create NPS surveys. Keeping these factors in mind while creating NPS surveys helps you have accurate NPS scores and successful NPS surveys.
The Importance of Time and Frequency
It’s imperative that you conduct NPS surveys often and check NPS scores to note the changes in customer satisfaction levels. However, you must not conduct these too often to avoid irritating your customers.
The ideal interval time between NPS surveys to be able to track changes in the scores is 2 to 4 months.
Sending out NPS surveys too often would mean that you question customer loyalty. That is not something that would build trust between your brand and your customers.
Additionally, it’s important that you allow customers time to have significant experiences with your brand before rolling out NPS surveys.
Also read, 5 Effective Ways to Build Your Online Presence
Conclusion
An NPS survey is one of the best ways to accurately measure your customers’ satisfaction and loyalty.
With the Net Promoter Score, you can get insightful feedback about customer churn and customer retention. As such, it’s vital that you calculate your own business’ NPS score on a regular basis.
Being a brand owner your objective would be to make your customers happy and content with your products and services. For this, you can use NPS to coordinate your efforts across all teams in your company to achieve this goal.