To NPS (Net Promoter Score) or Not? 3 Reasons Why You Should!

AB TastyBlogInsightsTo NPS (Net Promoter Score) or Not? 3 Reasons Why You Should!

How do your website visitors actually feel?

This very question was asked in 2003 by the CEO of Enterprise Rent-A-Car, Andy Taylor, according to Harvard Business Review. Taylor and his senior team wanted to figure out how to measure and manage customer loyalty. Instead of sending a long and detailed survey to their customers, they decided to poll them, asking two simple questions about:

  1. Quality of the customer experience
  2. Likelihood that they would return to the brand.

Because their poll was so simple and fast, customers really engaged with it because they were able to give each office real-time feedback. Overall, the questionnaire focused on customers who would re-use the service, but also recommend the brand to their friends.

This method, pioneered by Enterprise, sparked an idea in the mind of Frederick Reichheld, a consultant with Bain & Co.

He said that the key to a company’s success is customer loyalty, which could be calculated based on the customer’s willingness to evangelize the brand in question and their willingness to share their experience with others.

From these ideas, he created the first Net Promoter Score (NPS) survey.

The NPS survey has become the core measurement of customer experience and helps predict a brand’s overall business growth.

It is essentially wrapped up into 1 simple question:

“How likely is it that you would recommend (Name of Organization/Product/Service) to a friend or colleague?”

The results range from 0 to 10 and are broken down into 3 categories: Promoters, Passives and Detractors.

  • Promoters have a score between 9-10. They are the enthusiasts that keep buying and refer the brand to others.
  • Passives have a score between 7-8. They are satisfied, but they are also vulnerable to competitive offerings and open to other brands.
  • Detractors have a score between 0-6. They are usually the unhappy customers that can hurt the brand through negative word of mouth.

Overall, NPS surveys are easy to compare with others and look at the overall brand performance and perception. It is great to have on a website because it encourages visitors and customers to share their honest feedback whether they would grow the “word of mouth” of the brand.

But should your brand be measuring this?

3 Reasons why you should be using the Net Promoter Score – NPS survey.

1. NPS surveys help measure customer loyalty

Customer loyalty is changing and according to research company Access Development – 79% of customers would take their business to a competitor if they received poor customer service.

Thus, it is important to see what customers are thinking.

There are many KPIs that can be measured, like the average order value and how many times people repeat purchases.

However, the NPS survey helps gauge what the current customer perception of the brand is. With the NPS survey in mind, brands consider how they can change their marketing strategy or grow their customer loyalty.

2. NPS surveys align the team with the same goal

Each team has many objectives and lots of KPIs that they must achieve per quarter. What if all the customer-facing teams only had 1 goal?

Without customers, the brand won’t exist and thus, the most important goal should be focused on the customer experience.

So you could introduce NPS surveys to the customer-facing teams and say that the new goal is to Increase the NPS.

And voila! Sales will grow with customers becoming more loyal to you.

3. NPS is user-friendly and easy to adopt onto your brand’s website

NPS surveys can be added onto your website with the click of a button.

Using AB Tasty, you can add the NPS survey on your site and collect user feedback. With the data, you can decide what you want to optimize and how you want to change your website.

The change in Net Promoter Score over time will also be highlighted, showing the potential growth in customer loyalty and strength in the customer experience.

Overall, NPS surveys are a useful method to measure customer experience and predict business growth.

Intrigued? Why not check out more about NPS surveys?

We’ve launched new NPS survey reports that show your variations and their Net Promoter Scores by day and with more advanced filtering of every NPS comment.

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