Customer experience (CX) is critical, but how do you really know what your customers think? Your Net Promoter Score (NPS) provides insights into customer loyalty and satisfaction. But genuinely improving CX takes more than just calculating your NPS number.
Quick links:
How can I use NPS to improve CX?
What are the best practices for NPS?
Let’s decode the metric, connect it to real customer insights, and distill it down into clear, tangible ways you can listen to your customers’ voices with NPS—then actually act on what they’re telling you.
Discover how you NPS can transform your CX strategy and turn insights into action for a customer-focused future growth. Schedule a free consultation today at Symplicity!
What is Net Promoter Score?
Net Promoter Score (NPS) is one of the most important customer experience metrics. It measures customer loyalty and satisfaction based on willingness to recommend your products or services to others.
Your NPS provides a straightforward and effective way to gauge customer sentiment and assess the overall health of your brand’s relationships with its customers, and vice versa.
How Can I Calculate My Company’s NPS?
NPS is calculated based on a single question, often presented in customer surveys: “On a scale of 0 to 10, how likely are you to recommend [product or service or company] to a friend or colleague?”
The survey visually represents 10 as most likely by color-coding it green and including “Very likely” under it, and 0 as least likely by color-coding it green and including “Not likely” under it.
Respondents are then categorized into three groups:
- Promoters (Score 9-10). These are enthusiastic and loyal customers who are likely to recommend your offerings to others.
- Passives (Score 7-8). These are satisfied customers but not as enthusiastic as Promoters. They might be open to alternatives.
- Detractors (Score 0-6). Detractors are unhappy customers who could potentially harm your brand’s reputation by sharing bad experiences.
Calculate your NPS by subtracting the percentage of customers who are Detractors from the percentage who are Promoters, while discarding the Passives.
NPS = % Promoters – % Detractors
The resulting score can range from -100 to +100. A higher score indicates a healthier customer relationship and higher potential for customer advocacy.
NPS Example
Let’s say you survey 100 customers and get the following results:
- Promoters: 70%
- Passives: 10%
- Detractors: 20%
To calculate your NPS, you would subtract the percentage of Detractors (20%) from the percentage of Promoters (70%):
NPS = 70% – 20% = 50%
Your NPS is 50.
NPS vs. CSAT
NPS is one of several customer experience metrics, including Customer Satisfaction Score (CSAT) and Customer Effort Score (CES). While CSAT measures overall satisfaction with a specific interaction, NPS focuses on loyalty and the likelihood of recommendations.
Unlike CSAT, which assesses specific touchpoints, NPS provides a holistic view of the overall customer experience. NPS goes beyond transactional experiences to capture the emotional connection customers have with a brand. This makes NPS a powerful tool for predicting customer behavior and identifying areas for improvement that go beyond immediate satisfaction.
Why NPS Matters for CX
NPS provides unparalleled insights into how your CX impacts customer loyalty and advocacy. This metric directly correlates to revenue growth by predicting customer behaviors. That makes NPS one of the key metrics for business growth.
Relationship Between NPS and Customer Loyalty
NPS serves as a powerful indicator of consumer loyalty. The willingness to recommend your products or services directly reflects how satisfied and emotionally connected customers are with your brand. High NPS scores typically correlate with a strong customer base that’s more likely to stay loyal over time.
Impact on Revenue and Growth
Elevated NPS scores can drive revenue. Promoters are not only likely to stay with your brand but also to spread positive word-of-mouth recommendations. This organic promotion can drive new customer acquisition, ultimately boosting revenue and facilitating sustainable growth.
Benefits of Tracking NPS for CX
NPS can drive your customer experience initiatives to new heights:
- Predictive power. NPS acts as a predictive indicator of customer behavior. Higher scores generally align with lower churn rates and increased customer lifetime value.
- Strategic insights. NPS feedback offers actionable insights into what’s working and what needs improvement. By addressing Detractors’ concerns and leveraging Promoters’ insights, you can refine your CX strategy.
- Competitive edge. A consistently high NPS can set you apart in a competitive landscape. It signifies a strong customer-centric approach that resonates with consumers.
If you actively monitor and analyze NPS scores, you can pinpoint areas for CX refinement, make informed strategic decisions, and ultimately drive customer loyalty and growth. It leads to loyal, happy customers and exceptional customer experience. .
How to Implement NPS
When and how often you survey customers for their NPS feedback can impact the accuracy and relevance of the data. Consider factors like the customer lifecycle, product experience, and digital interactions.
Implement regular pulse checks, triggered by significant touchpoints (e.g., after a purchase, customer support interaction, or product upgrade), to capture a holistic view of their sentiments over time.
NPS Best Practices
- Simplicity. The Net Promoter Score question (“On a scale of 0 to 10, how likely are you to recommend…”) should be the focal point. If you decide to add additional questions, keep them few, clear, and concise.
- Additional context. You can include follow-up open-ended questions to gather specific customer feedback. These can provide deeper insights into the reasons behind their scores, helping you understand their experiences.
- Actionability. Frame questions to drive actionable insights. For instance, inquire about what areas need improvement or what aspects customers appreciate the most.
- Sample size. The more respondents you have feeding into your NPS, the more reliable it is. If you have no detractors and all your Promotors are friends and family, your NPS is probably not indicative of how real-world customers feel about your brand. If you have 11,783 respondents, your NPS is a much more accurate representation of how customers view your brand.
Segmentation
Segmentation of NPS scores allows you to gain granular insights into important dimensions of your customer base, such as product experience, customer tier, or demographic factors.
By analyzing NPS scores within these segments, you can identify which products or services resonate the most, tailor offerings to different customer groups, and address unique pain points more effectively.
How NPS Drives CX Success
Honest feedback derived from your NPS score fuels your ability to refine your strategies, optimize touchpoints, and enhance the entire customer journey.
This data-driven approach empowers you to align your CX initiatives with customer preferences, ultimately driving satisfaction and loyalty across all aspects of your business.
How to Interpret Your Score
Once you have determined your NPS, you need to interpret your score and identify areas where you can improve.
NPS Benchmarks by Industry
NPS scores vary widely across industries, so compare your score to competitors and benchmarks in your vertical:
- Software: 30-50+
- Retail: 20-40
- Telecom: 0-30
- Airlines: 10-10
The higher the score the better, but focus on improving over time vs chasing an arbitrary benchmark. Even scores below zero have value for tracking gains.
Identify Leading Drivers of Your NPS
If you dig deeper into your NPS data, you’ll be able to pinpoint the drivers that influence customer sentiment. Analyze the open-ended feedback and identify recurring themes. This information sheds light on what aspects of your products, services, or customer interactions are positively or negatively impacting consumer loyalty.
Link NPS Trends to CX Initiatives
NPS trends can help you track the progress of your CX initiatives. For example, if you have implemented a new customer service program and you see an improvement in your NPS scores, then you know that the program is working.
You can also use NPS trends to identify areas where you need to improve your CX. For example, if you see that your NPS scores are declining, then you need to investigate the reasons for this and take steps to improve your CX.
Leverage NPS Programs and Software
Implementing NPS programs and utilizing specialized NPS software can streamline the interpretation process. These tools help aggregate, analyze, and visualize NPS data, making it easier to identify patterns, trends, and actionable insights.
By linking NPS scores with your broader customer experience strategy, you’ll be well-equipped to make data-driven business decisions that lead to enhanced customer satisfaction and loyalty.
How to Use NPS to Improve CX
The Net Promoter Score (NPS) provides a wealth of customer feedback to guide your CX efforts. But simply measuring NPS is not enough—you must take action on the insights.
Here are proven strategies to convert NPS data into CX impact:
- Don’t just aggregate numbers. Dig into each low, neutral and high NPS response to identify the root factors driving satisfaction levels. Analyze verbatim comments to pinpoint recurring pain points causing detractors as well as peak experiences driving promoters. These qualitative insights inform targeted improvements.
- Connect NPS feedback to each stage of the customer journey to spotlight weak phases needing enhancement. For example, consistently low NPS scores around onboarding indicate an opportunity to refine that experience. You can also analyze NPS trends by product line, use case and demographic segment.
- Low NPS scores often signal difficulties finding information, lengthy resolutions or lack of personalization. Examine your self-service resources, internal processes and customer segmentation strategy. Shore up weak links through enhancements like improved help centers, streamlined issue routing and predictive analytics.
- Leverage system data to identify behavioral signals like repeat inquiries that indicate customers are at-risk of defecting. Setup triggers to alert staff to proactively engage these users with personalized care. Recovery efforts with detractors can also rebuild loyalty.
- Regularly refine your CX approach based on the latest NPS insights and competitive benchmarks. Over time, demonstrate hard ROI by correlating NPS gains to increased customer lifetime value, higher order values and reduced churn.
When you act on NPS you create a feedback loop that drives CX excellence. With vigilance and commitment to customers’ voices, the gains over time can be immeasurable.
What are the Best Practices for Implementing NPS?
To effectively utilize NPS, follow these best practices:
- Optimize the survey and methodology
- Integrate it with other CX metrics and data
- Implement a voice of the customer program
- Train staff to act on NPS feedback
Optimize the Survey and Methodology
To optimize your NPS survey and methodology, consider several key things. You must keep the survey simple and concise. Customers should complete it quickly and easily, without feeling overwhelmed.
Use a single-question format—for example, ask customers how likely they are to recommend the company or product on a scale of 0-10.
To increase the response rate and gather more accurate data, choose the right timing and delivery method for the NPS survey. Sending it shortly after a customer interaction or purchase can yield more relevant and timely feedback.
Offer multiple channels for customers to provide their feedback, such as email, SMS, or website pop-ups, to improve response rates.
Integrate NPS with Other CX Metrics
To understand customer satisfaction fully, integrate NPS with other CX metrics and data. Combining NPS with metrics like customer effort score (CES) or customer satisfaction score (CSAT) gives insights into different aspects of customer experience. This integration lets companies identify areas to improve and prioritize efforts accordingly.
Implement VoC Program
A voice of the customer (VoC) program is a very important step for effectively utilizing NPS feedback. This program involves collecting and analyzing customer feedback from various sources, such as surveys, social media, and customer support interactions.
To gain a comprehensive view of the customer experience and identify patterns or trends, companies should aggregate feedback from different touchpoints. Implementing a robust VoC program allows businesses to proactively address customer concerns and continuously enhance their offerings over time.
A strong VoC program empowers businesses to be proactive and responsive when acting upon insights derived from customer feedback.
Train Your Staff
Train your staff to act on NPS feedback will make a meaningful improvement to your business. Employees should be educated on the significance of NPS and how it impacts the company’s success.
They should be trained to interpret and analyze NPS data, identify actionable insights, and implement necessary changes. This includes empowering employees to take ownership of customer satisfaction and providing them with the necessary resources and support to address customer feedback effectively.
About Symplicity
We’re here to help you supercharge your CX program. Here are the key areas we can help:
- Identify CX shortfalls and opportunities
- Map the journey and pain points of your customers
- Implement automation, business intelligence, and contact center (CCaaS) solutions
- Audit and streamline your spending on technology, including customer experience tech
- Ensure you’re getting the very best solutions for the very best price
At Symplicity, we take a vendor-neutral approach, carefully analyzing your business requirements, budget, and industry to identify the ideal mobile device management solution for your needs.
We understand that every organization has unique priorities and challenges, which is why we offer a customized approach to match you with the perfect solution. We connect you with the best CX solutions by thoroughly evaluating providers based on their expertise, track record, and ability to meet your specific requirements.
With our expertise, guidance, and ongoing support, we ensure your CX implementation is seamless and efficient and provides peace of mind that your devices and data are secure.
We can also help you with your managed IT, business intelligence, SIP trunking, business automation, disaster recovery, and mobile device management needs. See our solutions page for the full range of services we offer.
NPS FAQ
Does NPS measure customer experience?
NPS or Net Promoter Score measures customer loyalty and perceptions through a simple question asking about likelihood to recommend. It provides a broad view of positive customer experiences but does not quantify overall customer satisfaction metrics or expectations. NPS complements other CX data.
How to use NPS to improve customer experience?
Though NPS only measures one customer perception dimension, it still provides a pulse on loyalty. By segmenting NPS data and combining it with feedback from other sources like reviews or surveys, you can gain insights to improve positive customer experiences. Use NPS as a baseline metric in your customer experience program.
What is the difference between customer experience and NPS?
Customer experience encompasses all perceptions across the entire journey whereas NPS measures consumer loyalty through one key question. NPS lacks the qualitative feedback of CX surveys that dig into satisfaction, expectations, emotions, pain points etc. But NPS is an easy regular snapshot of advocacy.
How is customer experience measured?
Customer experience measurement requires a mix of quantitative metrics and qualitative feedback. Channels such as customer support, email surveys, and other interactions provide qualitative feedback, while metrics such as NPS and response time give you a quantitative perspective. Synthesize both for the ultimate CX perspective.
Is NPS the best measure of customer satisfaction?
While easy to implement, NPS only measures one dimension of the customer experience—likelihood to recommend. It misses key customer satisfaction metrics and qualitative feedback. For a complete satisfaction view, NPS works best combined with CSAT surveys, review monitoring, and other CX initiatives to provide a full picture.
What are the three types of customers in the NPS model?
The NPS model categorizes customers as promoters (loyal enthusiasts), passives (satisfied but not loyal), and detractors (unhappy, may share their negative experience with others). The goal is to increase the percentage of promoters and decrease detractors.
What additional questions can you ask to learn more about customer expectations about your company?
One additional question you could ask customers to learn more about their expectations for your company is: “What could we do better to exceed your expectations?”
This follow-up question allows customers to provide qualitative feedback on where they feel the company is falling short of their standards and desires. The open-ended nature enables them to explain specific areas for improvement.
Other potential open-ended follow-up questions to gain insight into customer expectations:
- “In what ways can we improve to better deliver value for you?”
- “What do you expect from a company like ours?”
- “How could we make your experience with us even better?”
Asking constructive questions like these provide deeper insights into customer expectations that surveys alone may miss. The qualitative feedback enables you to align services, products, and interactions to better meet customer standards.
