Ways Companies are Using NPS to Grow Business

Guest Writer: Bhavika Sharma, Survey Designer at SurveySparrow

Customer is the king.

Your brand’s success is dependent on how the people consuming your brand see it, and that’s where Net Promoter Score (NPS) comes in.

The NPS is used to measure how happy customers are with a particular brand. NPS asks customers how likely they are to recommend a business to other people on a scale of 0 to 10. 

What is a Good NPS Score?

Customers are rated on a 10 point scale:
-Detractors are customers who give a score from 0 to 6. They might provide negative feedback about the brand.
-Passives are customers who score 7 or 8 who don’t have set views about the brand.
-Promoters are customers who score 9 or 10. These are satisfied clients who are likely to promote the brand through word of mouth advertising.

The NPS is the difference between the percentage of promoters and the percentage of detractors.

NPS = % Promoters – % Detractors

The best NPS score is 100 – but this is realistically impossible. Any positive number is considered to be a good NPS, while any number above 50 means your brand is being perceived very well by customers.

NPS can be a handy tool to use in your business in its various facets:

In Service and Operations
NPS scores can be used to gauge the service of the employees as the customers perceive it. Here’s a case study of how Taylor & Hart, a jeweler, customizing in bespoke engagement rings, used NPS to measure customer satisfaction of the services. The customer receives a ‘service NPS’ email survey where the customer has to rate their satisfaction with the level of services up to that point, and also add comments about it. 

Asking the customers about the NPS question just after the order is placed means the order is fresh in the customer’s mind. The answers help improve the level of service at Taylor and Hart. 

They also send an NPS survey 40 days after the purchase of jewelry from their website. Since the jewelry takes 22 days to be delivered to the customer, the customer can rate their satisfaction with the product after this period. 

In Human Resource Management
When an employee is happy with your brand, he will voluntarily become your spokesperson. 

A great case study for NPS used in human resource management is clothing company Zappos using it to gauge the satisfaction of their employees. A “Five Second Happiness Survey,” every month helped access the job satisfaction among the employees. The results were sent to employees, and the internal policies were amended taking into consideration these results. 

Zappos is now considered one of the best places to work, next to Google and Facebook. 

In Marketing Campaigns
Since marketing campaigns are about focusing on the aspect of your brand that attracts customers, NPS can be very useful. NPS can help understand if the brand’s customers will promote it via word of mouth.

Bill Macaitis, the CMO for Slack, a workplace messaging app, finds NPS very useful. Slack used NPS to figure out not just if customers will use the paid version of the work messaging app, but if they would recommend this tool to other people. 

In Sales
Customers who rank as promoters in your NPS scale are also more likely to come back for a purchase. Airbnb started using NPS in 2013. To test the effectiveness of NPS, Airbnb conducted a research study. The research involved feedback from guests who booked a stay with Airbnb. Out of the sample size, two-thirds of the guests who submitted the feedback were promoters who awarded Airbnb a score of 10, while only less than 5% were detractors. The research study found that promoters were statistically more likely to book a stay with Airbnb in the future. What was more surprising is that at least a quarter of the detractors were still promoters of Airbnb, they were just not satisfied with their particular stay. 

NPS can be really beneficial since it helps you get into the mind of the customer and gives you the exact information you need to make your brand more appealing.