NPS survey

Definition

NPS surveys are used to generate NPS scores, the measure of how likely or unlikely customers are to recommend your organization with a score from 0-10. In terms of how they function, customers responding with a score from 0-to-six are brand detractors and are likely to actively dissuade people they know from doing business with you. Those giving you a seven or eight are considered passive. They won’t dissuade people from doing business with you, but they’re unlikely to actively promote your brand either.

Because there are 10 points of variation in the study, NPS surveys should also include an open-ended question that encourages customers to explain how they arrived at their score. This qualitative data can be hugely important, particularly for understanding the motivations of detractors.

Once an NPS survey is completed, the NPS score is calculated by subtracting the percentage of detractors from the percentage of promoters.

If used properly, NPS surveys help to segment your customer base identifying which types of customer are ready to churn and which ones could be nurtured into becoming brand advocates. Because they ask the customer to rate their overall experience, NPS surveys should be used sparingly on no more than a quarterly basis, and should be sent to a random group of customers for the best insights.