Net Promoter System (NPS) has been widely adopted by companies as a key metric for measuring customer satisfaction and loyalty.
However, the creator of NPS now emphasises that NPS surveys should not be overused or misused.
Companies should stop sending NPS surveys when it's not necessary and choose the right moments in the customer journey to gather feedback.
Low response rates should be a sign that the system needs to be changed, not that customers are being bothered.
The original purpose of NPS was to enrich customers' lives and make their lives better.
This means that NPS should be used in a way that enhances customer experience, rather than causing inconvenience or frustration.
To achieve this goal, companies should reach out immediately to detractors and help solve their issues.
The creator of NPS also proposes combining NPS with other metrics, such as Net Revenue Retention or Earned Growth Rate, to better understand what is happening.
This holistic approach can provide a more comprehensive picture of customer satisfaction and business performance.
In conclusion, don't throw out NPS altogether. Instead, refine it and use it in a way that adds value to both customers and the business.
By following these guidelines, companies can effectively use NPS to measure customer satisfaction, enhance customer experience, and drive business growth.
When should you send out a NPS survey to a user?
NPS surveys should be sent out at strategic points in the customer journey where they can provide the most valuable insights. Some common times to send NPS surveys include:
After a customer has made a purchase or used a product/service
After a customer service interaction
At the end of a free trial period
After a major update or change to a product/service
Regularly, for example, quarterly or annually, to track long-term customer satisfaction trends
It's important to keep in mind that NPS surveys should not be sent too frequently or at random times, as this can lead to low response rates and provide limited value.
Companies should choose the right moments to gather feedback and ensure that they are not causing inconvenience to their customers.
Getting the timing right
Respecting customer time is critical when it comes to collecting feedback through NPS surveys.
Companies should only send out NPS surveys if the results are crucial to their core operations or directly impact customer-related projects.
Furthermore, NPS surveys should support a customer feedback loop that enables companies to act on the feedback they receive.
Sending out NPS surveys too frequently or without a clear purpose can lead to decreased response rates and a lack of valuable feedback.
This can also be a sign that customers don't see or hear the benefits of their input and that the company is over-surveying them.
It's also important to pace NPS surveys appropriately. NPS is a great indicator of customer satisfaction, but it's also a lagging indicator of other behaviours.
By spacing out NPS surveys and using other metrics, such as Net Revenue Retention, companies can gain a better understanding of customer behaviour and make data-driven decisions.
Transactional NPS, or sending out an NPS survey after each transaction, is not recommended.
This type of NPS survey can be less actionable, as it provides limited context and doesn't allow companies to see the bigger picture of customer behaviour.
By spacing out NPS surveys and using other metrics, companies can gain a more comprehensive view of customer satisfaction and make more informed decisions.