Why Use NPS: Benefits of Running NPS Surveys
Uncover actionable insights and improve your SaaS business with Net Promoter Score (NPS) surveys - the ultimate growth tool. Learn the benefits of running NPS surveys and how to leverage in-app NPS to boost customer satisfaction.
NPS has become increasingly relevant as a key metric for product development and customer service teams across the world. The rapid growth experienced by SaaS companies requires a robust system to help continuously improve customer experience.
To do this, it is crucial to have the most efficient tools to measure customer satisfaction and engagement to help identify improvement areas internally.
Why is NPS the preferred tool? Why should your company use it? These are common questions that any product manager must ask.
This article answers them by detailing the benefits of running NPS surveys.
Before diving in further, let’s look at what NPS stands for and how it works!
What is NPS?
NPS aka Net Promoter Score is a benchmarking tool companies use to get a better idea of customer satisfaction and loyalty. It’s based on a brief two-minute survey that measures your customers’ willingness to recommend a brand to a friend or colleague.
The NPS survey categorizes responders into three customer segments:
Promoters
These are customers who would highly recommend your business to others. On a scale of 1 to 10, they would typically respond with a 9 or 10 when asked how likely they are to recommend your service.
Passives
These customers would choose a 7 or 8 when asked about their willingness to recommend and are not loyal enthusiasts like promoters, even though they are likely satisfied and indifferent.
Detractors
These customers only have a willingness of 0 to 6 on a scale of 10. They are dissatisfied with your company and might discourage others from using your product or service.
The Net Promoter Score is obtained by subtracting the percentage of detractors from the percentage of promoters. Thus, a highly positive score is desirable, while a negative score spells trouble!
Now, let us finally understand why this seemingly simple score is so helpful.
5 Reasons Why Using NPS is Beneficial
In the B2B space, your reputation as a service provider is of the utmost importance.
NPS has quickly become the gold standard for gauging a company’s good standing among its customers and is used more than the CSAT (Customer Satisfaction Score) and CES (Customer Effort Score) by a substantial margin.
Listen below are five reasons why:
NPS is User-Friendly
The beauty of the Net Promoter Score lies in its simplicity.
The NPS survey only takes two minutes of your client’s precious time and does not ask overly specific or detailed questions, focusing on their overall impression of your company or brand.
It is structured around one main quantitative question: “How likely are you to recommend our business to someone else?”, and can be followed by some open-ended survey questions that help substantiate the rating your client has given.
The ease of use makes NPS surveys the perfect tool to
collect more reviews from your customers,
achieve higher response rates,
increase consumer engagement, and thus
gather actionable insights directly from your clients.
The formula for calculating your NPS score, as explained earlier, is pretty straightforward. Provided that you have the right NPS software in place, this makes the bulk analysis of gathered data an error-free and time-saving process on the regular.
NPS helps Cultivate Customer Loyalty
Knowing your Net Promoter Score gives you the upper hand when studying the probability of customer behaviors. By keeping tabs on the direction in which your company’s NPS is trending, your customer success teams can orient themselves more relevantly.
If you have an increasing percentage of detractors, the likelihood of clients dropping your business is higher. The qualitative open-ended questions in intuitive customer satisfaction surveys can point to the source of their dissatisfaction. This analytical insight allows you to better prepare for and circumvent the impending financial hit to your business.
Thus, not only does the collected data enhance your company’s customer retention, but it also helps you identify pain points quicker and turn unhappy customers into happy customers, which further helps you attract more potential customers.
This is no small feat, especially since reducing churn and boosting the loyalty of current customers promises an even higher Return on Investment (ROI) than converting new clients. In this case, a bird in hand is worth more than two in the bush!
NPS boosts CLV
Categorizing your customers into promoters, passives, and detractors, can enable you to diversify your customer service approach according to those pockets. With the help of qualitative feedback from each of these categories, you can successfully resolve their issues and close the feedback loop.
For instance, promoters can be indoctrinated into a referral program where they get to avail of a special discount for every successful referral they facilitate, passives may be offered an extended free-trial period, while detractors can be targeted with a follow-up survey regarding their last purchase.
Getting a specific idea of your customers’ user experience is key to boosting your average Customer Lifetime Value (CLV) since customers are more likely to continue to purchase your brand if they are appropriately incentivized.
Promoters in particular are highly conducive to upselling, and following up with supplementary services with this section of your customer base can generate immense profits.
Thus, having a smart NPS system in place makes your sales-driven follow-through that much easier.
NPS creates a Stronger Product
Data obtained from NPS surveys can be put to use in multiple ways. Customer feedback can help you determine changes to implement throughout the sales and customer journey.
But the best customer service in the world can’t save your company from the drawbacks of a subpar product.
NPS surveys allow consumers to provide you with their honest feedback. Thus, you have to opportunity to go back to the drawing board and improve things on the design end.
In the fast-evolving SaaS world, this is a priceless advantage because your software can be suitably tweaked and updated.
Keeping up with trends in your NPS helps you to be aware of how changes in your product or service have impacted your company’s perception among customers. By cross-referencing NPS trends during the release of a new feature, you can also know whether this change has been for the better.
Over time, concretizing actionable insights becomes a norm alongside the continuous processing of NPS data, thus propelling the efficiency and viability of your product or service to new heights!
NPS helps to Benchmark against Competition
Trends in your Net Promoter Score can reveal valuable information, as discussed above. Similarly, keeping an eye on your competitors’ NPS can yield useful benchmarking insights.
If you want to know how well your company’s NPS fares against companies across all industries, then the absolute NPS is what you need to look at.
However, it’s best to consider direct or close competitors to accurately gauge both how you measure up against them, and where you stand as compared to average scores in the industry.
Using the industry average as a standard is crucial because it allows you to make a relative NPS comparison, which is more specific to the experience of your shared customer base.
Benchmarking proves useful when you want to confirm if you’re headed in the right direction. By improving your product or service, you can aim to either catch up to or surpass your competitors.
If your NPS is consistently the same as your competitors, you can further look into whether this is a reflection of trends within the industry itself or something that you can boost further by acting on insights gained from NPS surveys.
Alternatively, if you’re doing much better than most of your competitors, studying your relative NPS can assure you that you have the leeway to experiment with and reprioritize your business strategy if you wish.
Conclusion
Although the Net Promoter Score is a very efficient yardstick for customer satisfaction, it is not without its drawbacks. Some common problems NPS users might face include:
exaggeratedly low NPS since customers are psychologically predisposed to reporting negative experiences as opposed to positive ones,
superficial understanding of customer loyalty, since loyal customers may not fill out the survey each time, and
inability to draw a cause-and-effect relationship between your market strategy and NPS due to market fluctuations in your industry.
These drawbacks can be somewhat mitigated if you remember that NPS isn’t just a number - it’s a lifestyle. The more attention you pay to trends in your score over time, the more actionable your insights will be.
And what better way to stay on top of things than to invest in intuitive software that seamlessly generates prompts for your users to provide additional feedback?
Running 1Flow’s No-code In-app NPS
By incorporating NPS in your product development and sales process, you can zero in on your product or service’s salient features and continue to improve them in a data-driven capacity.
1Flow collects actionable user insights by automatically surveying users while they use your company’s app or website, helping you understand consumer behavior and generate customer personas.
No-code Hassle-free Interface
1Flow’s thoughtful design enables smooth follow-ups to customer interactions, providing real-time feedback within hours and setting you up for problem-solving, thus boosting customer satisfaction.
In-built Analytical Dashboard
You can build customized in-app surveys with 1Flow’s pre-built analytical dashboard which is made specifically with product managers and UX researchers in mind.
High Response Rate
1Flow surveys clock a whopping response rate of 38 percent on average. By presenting the right flows at the right time, you can maximize your response rates and collect more quantitative and qualitative feedback in a short period.
This, in turn, accelerates research timelines and provides opportunities to convert your detractors into promoters.
So what are you waiting for? Take the first step and sign up for 1Flow’s interactive demo today to get massive returns in customer satisfaction down the line!
NPS has become increasingly relevant as a key metric for product development and customer service teams across the world. The rapid growth experienced by SaaS companies requires a robust system to help continuously improve customer experience.
To do this, it is crucial to have the most efficient tools to measure customer satisfaction and engagement to help identify improvement areas internally.
Why is NPS the preferred tool? Why should your company use it? These are common questions that any product manager must ask.
This article answers them by detailing the benefits of running NPS surveys.
Before diving in further, let’s look at what NPS stands for and how it works!
What is NPS?
NPS aka Net Promoter Score is a benchmarking tool companies use to get a better idea of customer satisfaction and loyalty. It’s based on a brief two-minute survey that measures your customers’ willingness to recommend a brand to a friend or colleague.
The NPS survey categorizes responders into three customer segments:
Promoters
These are customers who would highly recommend your business to others. On a scale of 1 to 10, they would typically respond with a 9 or 10 when asked how likely they are to recommend your service.
Passives
These customers would choose a 7 or 8 when asked about their willingness to recommend and are not loyal enthusiasts like promoters, even though they are likely satisfied and indifferent.
Detractors
These customers only have a willingness of 0 to 6 on a scale of 10. They are dissatisfied with your company and might discourage others from using your product or service.
The Net Promoter Score is obtained by subtracting the percentage of detractors from the percentage of promoters. Thus, a highly positive score is desirable, while a negative score spells trouble!
Now, let us finally understand why this seemingly simple score is so helpful.
5 Reasons Why Using NPS is Beneficial
In the B2B space, your reputation as a service provider is of the utmost importance.
NPS has quickly become the gold standard for gauging a company’s good standing among its customers and is used more than the CSAT (Customer Satisfaction Score) and CES (Customer Effort Score) by a substantial margin.
Listen below are five reasons why:
NPS is User-Friendly
The beauty of the Net Promoter Score lies in its simplicity.
The NPS survey only takes two minutes of your client’s precious time and does not ask overly specific or detailed questions, focusing on their overall impression of your company or brand.
It is structured around one main quantitative question: “How likely are you to recommend our business to someone else?”, and can be followed by some open-ended survey questions that help substantiate the rating your client has given.
The ease of use makes NPS surveys the perfect tool to
collect more reviews from your customers,
achieve higher response rates,
increase consumer engagement, and thus
gather actionable insights directly from your clients.
The formula for calculating your NPS score, as explained earlier, is pretty straightforward. Provided that you have the right NPS software in place, this makes the bulk analysis of gathered data an error-free and time-saving process on the regular.
NPS helps Cultivate Customer Loyalty
Knowing your Net Promoter Score gives you the upper hand when studying the probability of customer behaviors. By keeping tabs on the direction in which your company’s NPS is trending, your customer success teams can orient themselves more relevantly.
If you have an increasing percentage of detractors, the likelihood of clients dropping your business is higher. The qualitative open-ended questions in intuitive customer satisfaction surveys can point to the source of their dissatisfaction. This analytical insight allows you to better prepare for and circumvent the impending financial hit to your business.
Thus, not only does the collected data enhance your company’s customer retention, but it also helps you identify pain points quicker and turn unhappy customers into happy customers, which further helps you attract more potential customers.
This is no small feat, especially since reducing churn and boosting the loyalty of current customers promises an even higher Return on Investment (ROI) than converting new clients. In this case, a bird in hand is worth more than two in the bush!
NPS boosts CLV
Categorizing your customers into promoters, passives, and detractors, can enable you to diversify your customer service approach according to those pockets. With the help of qualitative feedback from each of these categories, you can successfully resolve their issues and close the feedback loop.
For instance, promoters can be indoctrinated into a referral program where they get to avail of a special discount for every successful referral they facilitate, passives may be offered an extended free-trial period, while detractors can be targeted with a follow-up survey regarding their last purchase.
Getting a specific idea of your customers’ user experience is key to boosting your average Customer Lifetime Value (CLV) since customers are more likely to continue to purchase your brand if they are appropriately incentivized.
Promoters in particular are highly conducive to upselling, and following up with supplementary services with this section of your customer base can generate immense profits.
Thus, having a smart NPS system in place makes your sales-driven follow-through that much easier.
NPS creates a Stronger Product
Data obtained from NPS surveys can be put to use in multiple ways. Customer feedback can help you determine changes to implement throughout the sales and customer journey.
But the best customer service in the world can’t save your company from the drawbacks of a subpar product.
NPS surveys allow consumers to provide you with their honest feedback. Thus, you have to opportunity to go back to the drawing board and improve things on the design end.
In the fast-evolving SaaS world, this is a priceless advantage because your software can be suitably tweaked and updated.
Keeping up with trends in your NPS helps you to be aware of how changes in your product or service have impacted your company’s perception among customers. By cross-referencing NPS trends during the release of a new feature, you can also know whether this change has been for the better.
Over time, concretizing actionable insights becomes a norm alongside the continuous processing of NPS data, thus propelling the efficiency and viability of your product or service to new heights!
NPS helps to Benchmark against Competition
Trends in your Net Promoter Score can reveal valuable information, as discussed above. Similarly, keeping an eye on your competitors’ NPS can yield useful benchmarking insights.
If you want to know how well your company’s NPS fares against companies across all industries, then the absolute NPS is what you need to look at.
However, it’s best to consider direct or close competitors to accurately gauge both how you measure up against them, and where you stand as compared to average scores in the industry.
Using the industry average as a standard is crucial because it allows you to make a relative NPS comparison, which is more specific to the experience of your shared customer base.
Benchmarking proves useful when you want to confirm if you’re headed in the right direction. By improving your product or service, you can aim to either catch up to or surpass your competitors.
If your NPS is consistently the same as your competitors, you can further look into whether this is a reflection of trends within the industry itself or something that you can boost further by acting on insights gained from NPS surveys.
Alternatively, if you’re doing much better than most of your competitors, studying your relative NPS can assure you that you have the leeway to experiment with and reprioritize your business strategy if you wish.
Conclusion
Although the Net Promoter Score is a very efficient yardstick for customer satisfaction, it is not without its drawbacks. Some common problems NPS users might face include:
exaggeratedly low NPS since customers are psychologically predisposed to reporting negative experiences as opposed to positive ones,
superficial understanding of customer loyalty, since loyal customers may not fill out the survey each time, and
inability to draw a cause-and-effect relationship between your market strategy and NPS due to market fluctuations in your industry.
These drawbacks can be somewhat mitigated if you remember that NPS isn’t just a number - it’s a lifestyle. The more attention you pay to trends in your score over time, the more actionable your insights will be.
And what better way to stay on top of things than to invest in intuitive software that seamlessly generates prompts for your users to provide additional feedback?
Running 1Flow’s No-code In-app NPS
By incorporating NPS in your product development and sales process, you can zero in on your product or service’s salient features and continue to improve them in a data-driven capacity.
1Flow collects actionable user insights by automatically surveying users while they use your company’s app or website, helping you understand consumer behavior and generate customer personas.
No-code Hassle-free Interface
1Flow’s thoughtful design enables smooth follow-ups to customer interactions, providing real-time feedback within hours and setting you up for problem-solving, thus boosting customer satisfaction.
In-built Analytical Dashboard
You can build customized in-app surveys with 1Flow’s pre-built analytical dashboard which is made specifically with product managers and UX researchers in mind.
High Response Rate
1Flow surveys clock a whopping response rate of 38 percent on average. By presenting the right flows at the right time, you can maximize your response rates and collect more quantitative and qualitative feedback in a short period.
This, in turn, accelerates research timelines and provides opportunities to convert your detractors into promoters.
So what are you waiting for? Take the first step and sign up for 1Flow’s interactive demo today to get massive returns in customer satisfaction down the line!
NPS has become increasingly relevant as a key metric for product development and customer service teams across the world. The rapid growth experienced by SaaS companies requires a robust system to help continuously improve customer experience.
To do this, it is crucial to have the most efficient tools to measure customer satisfaction and engagement to help identify improvement areas internally.
Why is NPS the preferred tool? Why should your company use it? These are common questions that any product manager must ask.
This article answers them by detailing the benefits of running NPS surveys.
Before diving in further, let’s look at what NPS stands for and how it works!
What is NPS?
NPS aka Net Promoter Score is a benchmarking tool companies use to get a better idea of customer satisfaction and loyalty. It’s based on a brief two-minute survey that measures your customers’ willingness to recommend a brand to a friend or colleague.
The NPS survey categorizes responders into three customer segments:
Promoters
These are customers who would highly recommend your business to others. On a scale of 1 to 10, they would typically respond with a 9 or 10 when asked how likely they are to recommend your service.
Passives
These customers would choose a 7 or 8 when asked about their willingness to recommend and are not loyal enthusiasts like promoters, even though they are likely satisfied and indifferent.
Detractors
These customers only have a willingness of 0 to 6 on a scale of 10. They are dissatisfied with your company and might discourage others from using your product or service.
The Net Promoter Score is obtained by subtracting the percentage of detractors from the percentage of promoters. Thus, a highly positive score is desirable, while a negative score spells trouble!
Now, let us finally understand why this seemingly simple score is so helpful.
5 Reasons Why Using NPS is Beneficial
In the B2B space, your reputation as a service provider is of the utmost importance.
NPS has quickly become the gold standard for gauging a company’s good standing among its customers and is used more than the CSAT (Customer Satisfaction Score) and CES (Customer Effort Score) by a substantial margin.
Listen below are five reasons why:
NPS is User-Friendly
The beauty of the Net Promoter Score lies in its simplicity.
The NPS survey only takes two minutes of your client’s precious time and does not ask overly specific or detailed questions, focusing on their overall impression of your company or brand.
It is structured around one main quantitative question: “How likely are you to recommend our business to someone else?”, and can be followed by some open-ended survey questions that help substantiate the rating your client has given.
The ease of use makes NPS surveys the perfect tool to
collect more reviews from your customers,
achieve higher response rates,
increase consumer engagement, and thus
gather actionable insights directly from your clients.
The formula for calculating your NPS score, as explained earlier, is pretty straightforward. Provided that you have the right NPS software in place, this makes the bulk analysis of gathered data an error-free and time-saving process on the regular.
NPS helps Cultivate Customer Loyalty
Knowing your Net Promoter Score gives you the upper hand when studying the probability of customer behaviors. By keeping tabs on the direction in which your company’s NPS is trending, your customer success teams can orient themselves more relevantly.
If you have an increasing percentage of detractors, the likelihood of clients dropping your business is higher. The qualitative open-ended questions in intuitive customer satisfaction surveys can point to the source of their dissatisfaction. This analytical insight allows you to better prepare for and circumvent the impending financial hit to your business.
Thus, not only does the collected data enhance your company’s customer retention, but it also helps you identify pain points quicker and turn unhappy customers into happy customers, which further helps you attract more potential customers.
This is no small feat, especially since reducing churn and boosting the loyalty of current customers promises an even higher Return on Investment (ROI) than converting new clients. In this case, a bird in hand is worth more than two in the bush!
NPS boosts CLV
Categorizing your customers into promoters, passives, and detractors, can enable you to diversify your customer service approach according to those pockets. With the help of qualitative feedback from each of these categories, you can successfully resolve their issues and close the feedback loop.
For instance, promoters can be indoctrinated into a referral program where they get to avail of a special discount for every successful referral they facilitate, passives may be offered an extended free-trial period, while detractors can be targeted with a follow-up survey regarding their last purchase.
Getting a specific idea of your customers’ user experience is key to boosting your average Customer Lifetime Value (CLV) since customers are more likely to continue to purchase your brand if they are appropriately incentivized.
Promoters in particular are highly conducive to upselling, and following up with supplementary services with this section of your customer base can generate immense profits.
Thus, having a smart NPS system in place makes your sales-driven follow-through that much easier.
NPS creates a Stronger Product
Data obtained from NPS surveys can be put to use in multiple ways. Customer feedback can help you determine changes to implement throughout the sales and customer journey.
But the best customer service in the world can’t save your company from the drawbacks of a subpar product.
NPS surveys allow consumers to provide you with their honest feedback. Thus, you have to opportunity to go back to the drawing board and improve things on the design end.
In the fast-evolving SaaS world, this is a priceless advantage because your software can be suitably tweaked and updated.
Keeping up with trends in your NPS helps you to be aware of how changes in your product or service have impacted your company’s perception among customers. By cross-referencing NPS trends during the release of a new feature, you can also know whether this change has been for the better.
Over time, concretizing actionable insights becomes a norm alongside the continuous processing of NPS data, thus propelling the efficiency and viability of your product or service to new heights!
NPS helps to Benchmark against Competition
Trends in your Net Promoter Score can reveal valuable information, as discussed above. Similarly, keeping an eye on your competitors’ NPS can yield useful benchmarking insights.
If you want to know how well your company’s NPS fares against companies across all industries, then the absolute NPS is what you need to look at.
However, it’s best to consider direct or close competitors to accurately gauge both how you measure up against them, and where you stand as compared to average scores in the industry.
Using the industry average as a standard is crucial because it allows you to make a relative NPS comparison, which is more specific to the experience of your shared customer base.
Benchmarking proves useful when you want to confirm if you’re headed in the right direction. By improving your product or service, you can aim to either catch up to or surpass your competitors.
If your NPS is consistently the same as your competitors, you can further look into whether this is a reflection of trends within the industry itself or something that you can boost further by acting on insights gained from NPS surveys.
Alternatively, if you’re doing much better than most of your competitors, studying your relative NPS can assure you that you have the leeway to experiment with and reprioritize your business strategy if you wish.
Conclusion
Although the Net Promoter Score is a very efficient yardstick for customer satisfaction, it is not without its drawbacks. Some common problems NPS users might face include:
exaggeratedly low NPS since customers are psychologically predisposed to reporting negative experiences as opposed to positive ones,
superficial understanding of customer loyalty, since loyal customers may not fill out the survey each time, and
inability to draw a cause-and-effect relationship between your market strategy and NPS due to market fluctuations in your industry.
These drawbacks can be somewhat mitigated if you remember that NPS isn’t just a number - it’s a lifestyle. The more attention you pay to trends in your score over time, the more actionable your insights will be.
And what better way to stay on top of things than to invest in intuitive software that seamlessly generates prompts for your users to provide additional feedback?
Running 1Flow’s No-code In-app NPS
By incorporating NPS in your product development and sales process, you can zero in on your product or service’s salient features and continue to improve them in a data-driven capacity.
1Flow collects actionable user insights by automatically surveying users while they use your company’s app or website, helping you understand consumer behavior and generate customer personas.
No-code Hassle-free Interface
1Flow’s thoughtful design enables smooth follow-ups to customer interactions, providing real-time feedback within hours and setting you up for problem-solving, thus boosting customer satisfaction.
In-built Analytical Dashboard
You can build customized in-app surveys with 1Flow’s pre-built analytical dashboard which is made specifically with product managers and UX researchers in mind.
High Response Rate
1Flow surveys clock a whopping response rate of 38 percent on average. By presenting the right flows at the right time, you can maximize your response rates and collect more quantitative and qualitative feedback in a short period.
This, in turn, accelerates research timelines and provides opportunities to convert your detractors into promoters.
So what are you waiting for? Take the first step and sign up for 1Flow’s interactive demo today to get massive returns in customer satisfaction down the line!
NPS has become increasingly relevant as a key metric for product development and customer service teams across the world. The rapid growth experienced by SaaS companies requires a robust system to help continuously improve customer experience.
To do this, it is crucial to have the most efficient tools to measure customer satisfaction and engagement to help identify improvement areas internally.
Why is NPS the preferred tool? Why should your company use it? These are common questions that any product manager must ask.
This article answers them by detailing the benefits of running NPS surveys.
Before diving in further, let’s look at what NPS stands for and how it works!
What is NPS?
NPS aka Net Promoter Score is a benchmarking tool companies use to get a better idea of customer satisfaction and loyalty. It’s based on a brief two-minute survey that measures your customers’ willingness to recommend a brand to a friend or colleague.
The NPS survey categorizes responders into three customer segments:
Promoters
These are customers who would highly recommend your business to others. On a scale of 1 to 10, they would typically respond with a 9 or 10 when asked how likely they are to recommend your service.
Passives
These customers would choose a 7 or 8 when asked about their willingness to recommend and are not loyal enthusiasts like promoters, even though they are likely satisfied and indifferent.
Detractors
These customers only have a willingness of 0 to 6 on a scale of 10. They are dissatisfied with your company and might discourage others from using your product or service.
The Net Promoter Score is obtained by subtracting the percentage of detractors from the percentage of promoters. Thus, a highly positive score is desirable, while a negative score spells trouble!
Now, let us finally understand why this seemingly simple score is so helpful.
5 Reasons Why Using NPS is Beneficial
In the B2B space, your reputation as a service provider is of the utmost importance.
NPS has quickly become the gold standard for gauging a company’s good standing among its customers and is used more than the CSAT (Customer Satisfaction Score) and CES (Customer Effort Score) by a substantial margin.
Listen below are five reasons why:
NPS is User-Friendly
The beauty of the Net Promoter Score lies in its simplicity.
The NPS survey only takes two minutes of your client’s precious time and does not ask overly specific or detailed questions, focusing on their overall impression of your company or brand.
It is structured around one main quantitative question: “How likely are you to recommend our business to someone else?”, and can be followed by some open-ended survey questions that help substantiate the rating your client has given.
The ease of use makes NPS surveys the perfect tool to
collect more reviews from your customers,
achieve higher response rates,
increase consumer engagement, and thus
gather actionable insights directly from your clients.
The formula for calculating your NPS score, as explained earlier, is pretty straightforward. Provided that you have the right NPS software in place, this makes the bulk analysis of gathered data an error-free and time-saving process on the regular.
NPS helps Cultivate Customer Loyalty
Knowing your Net Promoter Score gives you the upper hand when studying the probability of customer behaviors. By keeping tabs on the direction in which your company’s NPS is trending, your customer success teams can orient themselves more relevantly.
If you have an increasing percentage of detractors, the likelihood of clients dropping your business is higher. The qualitative open-ended questions in intuitive customer satisfaction surveys can point to the source of their dissatisfaction. This analytical insight allows you to better prepare for and circumvent the impending financial hit to your business.
Thus, not only does the collected data enhance your company’s customer retention, but it also helps you identify pain points quicker and turn unhappy customers into happy customers, which further helps you attract more potential customers.
This is no small feat, especially since reducing churn and boosting the loyalty of current customers promises an even higher Return on Investment (ROI) than converting new clients. In this case, a bird in hand is worth more than two in the bush!
NPS boosts CLV
Categorizing your customers into promoters, passives, and detractors, can enable you to diversify your customer service approach according to those pockets. With the help of qualitative feedback from each of these categories, you can successfully resolve their issues and close the feedback loop.
For instance, promoters can be indoctrinated into a referral program where they get to avail of a special discount for every successful referral they facilitate, passives may be offered an extended free-trial period, while detractors can be targeted with a follow-up survey regarding their last purchase.
Getting a specific idea of your customers’ user experience is key to boosting your average Customer Lifetime Value (CLV) since customers are more likely to continue to purchase your brand if they are appropriately incentivized.
Promoters in particular are highly conducive to upselling, and following up with supplementary services with this section of your customer base can generate immense profits.
Thus, having a smart NPS system in place makes your sales-driven follow-through that much easier.
NPS creates a Stronger Product
Data obtained from NPS surveys can be put to use in multiple ways. Customer feedback can help you determine changes to implement throughout the sales and customer journey.
But the best customer service in the world can’t save your company from the drawbacks of a subpar product.
NPS surveys allow consumers to provide you with their honest feedback. Thus, you have to opportunity to go back to the drawing board and improve things on the design end.
In the fast-evolving SaaS world, this is a priceless advantage because your software can be suitably tweaked and updated.
Keeping up with trends in your NPS helps you to be aware of how changes in your product or service have impacted your company’s perception among customers. By cross-referencing NPS trends during the release of a new feature, you can also know whether this change has been for the better.
Over time, concretizing actionable insights becomes a norm alongside the continuous processing of NPS data, thus propelling the efficiency and viability of your product or service to new heights!
NPS helps to Benchmark against Competition
Trends in your Net Promoter Score can reveal valuable information, as discussed above. Similarly, keeping an eye on your competitors’ NPS can yield useful benchmarking insights.
If you want to know how well your company’s NPS fares against companies across all industries, then the absolute NPS is what you need to look at.
However, it’s best to consider direct or close competitors to accurately gauge both how you measure up against them, and where you stand as compared to average scores in the industry.
Using the industry average as a standard is crucial because it allows you to make a relative NPS comparison, which is more specific to the experience of your shared customer base.
Benchmarking proves useful when you want to confirm if you’re headed in the right direction. By improving your product or service, you can aim to either catch up to or surpass your competitors.
If your NPS is consistently the same as your competitors, you can further look into whether this is a reflection of trends within the industry itself or something that you can boost further by acting on insights gained from NPS surveys.
Alternatively, if you’re doing much better than most of your competitors, studying your relative NPS can assure you that you have the leeway to experiment with and reprioritize your business strategy if you wish.
Conclusion
Although the Net Promoter Score is a very efficient yardstick for customer satisfaction, it is not without its drawbacks. Some common problems NPS users might face include:
exaggeratedly low NPS since customers are psychologically predisposed to reporting negative experiences as opposed to positive ones,
superficial understanding of customer loyalty, since loyal customers may not fill out the survey each time, and
inability to draw a cause-and-effect relationship between your market strategy and NPS due to market fluctuations in your industry.
These drawbacks can be somewhat mitigated if you remember that NPS isn’t just a number - it’s a lifestyle. The more attention you pay to trends in your score over time, the more actionable your insights will be.
And what better way to stay on top of things than to invest in intuitive software that seamlessly generates prompts for your users to provide additional feedback?
Running 1Flow’s No-code In-app NPS
By incorporating NPS in your product development and sales process, you can zero in on your product or service’s salient features and continue to improve them in a data-driven capacity.
1Flow collects actionable user insights by automatically surveying users while they use your company’s app or website, helping you understand consumer behavior and generate customer personas.
No-code Hassle-free Interface
1Flow’s thoughtful design enables smooth follow-ups to customer interactions, providing real-time feedback within hours and setting you up for problem-solving, thus boosting customer satisfaction.
In-built Analytical Dashboard
You can build customized in-app surveys with 1Flow’s pre-built analytical dashboard which is made specifically with product managers and UX researchers in mind.
High Response Rate
1Flow surveys clock a whopping response rate of 38 percent on average. By presenting the right flows at the right time, you can maximize your response rates and collect more quantitative and qualitative feedback in a short period.
This, in turn, accelerates research timelines and provides opportunities to convert your detractors into promoters.
So what are you waiting for? Take the first step and sign up for 1Flow’s interactive demo today to get massive returns in customer satisfaction down the line!
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