Customer Experience

Difference between Transactional NPS and Relationship NPS

Difference between Transactional NPS and Relationship NPS

The easiest way to define customer experience is the way your customers view the nature of their relationship with your company. In order to establish a long-lasting association with customers, organizations need to craft an experience that is delightful, which also means that they need to exceed customer expectations on a regular basis.

In the current digitized business scenario, experiences and interactions have the potential to make or break your business in no time. Emotions are expressed widely on the different channels we have today. While it can boost consumer demand and foster customer loyalty, it can also backfire by reducing efficiency or diminishing the value of a brand.

The response needed by these touch-points must be fast and immediate. It is not advisable to wait for customer feedback to be gathered and then deciding on the best course of action. That will be a lengthy process which can even take months. To master the art of making customers happier and increasing consumer loyalty in quick time, implementing an NPS program can be the best move. 

What is Net Promoter Score (NPS)?

Net Promoter Score (NPS) is a popular technique in customer experience programs. Organizations can apply Net Promoter Score in a number of ways, including a relationship metric or Transactional feedback.

Made in 2003 by Bain and Company, Net Promoter Score has turned into a standard measurement to quantify customer loyalty. As indicated by Bain and Company, firms with high Net Promoter Scores drive a significantly greater degree of success against competitors. 

While setting up an NPS Survey through the Net Promoter Score Software, organizations face a dilemma about whether to use a Transactional or Relationship NPS Survey. The type of Net Promoter Score survey a company uses and the timing depends upon its objectives and also the industry.

Create your own NPS Survey

What are Relationship NPS Surveys?

A Relationship Survey is a conventional NPS survey where you attempt to decide how loyal customers are. The idea is to ask customers about their whole experience of being associated with your organization. These surveys are done regularly like bi-annually, or quarterly.

The survey question is straightforward like:

“How likely are you to recommend us to a friend or family on a scale of 0 to 10?”

A Relationship Survey is the first step to measuring Net Promoter Score. They help you make sense of which aspect of the customer experience must be improved. Using these surveys involves deciding when to conduct them and who will be the respondents.

What are Transactional NPS Surveys?

A Transactional survey is intended to find out about a customer’s involvement with a particular process or interaction, also called a touch-point. The objective is not to gauge customer loyalty, but to discover how satisfied customers are with a specific segment.

A basic Transactional NPS survey focuses on a specific transaction, such as:

“Based on your recent shopping experience, how likely are you to recommend us to a friend or colleague on a scale of 0 to 10?”

Mostly, a Transactional NPS survey is conducted only if you have a Relationship Survey ready. This is because the results of the latter will enable companies to understand which processes and interactions require further examination. The primary purpose is to figure out which touch-point is recognized more when customers provide justifications for their score.

The best timing for Transactional surveys is right after a consumer interaction so they don’t forget their experience with it.

Where to use Transactional NPS Surveys

Taking feedback from customers after specific interactions will enable you to comprehend what the reason for their assessment was after a particular experience.

These are some touch-points where a Transactional survey can be used: 

1. Use Transactional NPS Surveys to get Post-Service Feedback

Send your customer a Transactional NPS Question to understand whether the customer service agent was able to resolve the issue of a customer.  Due to the huge influx of customer service requests, many times. they are disregarded, forgotten or a proposed solution does not help. It is best to connect with your customers to get an idea about their post-service satisfaction with the customer service agent and make improvements in the process if necessary.

2. Use Transactional NPS Surveys after new Business Interaction 

Asking your customers how satisfied they are with your service after a new transaction is critical since such Transactional interactions are often identified with some issues like an unsatisfactory installment procedure, a wrongly delivered/damaged shipment, etc.

By using an NPS Software to create a Transactional survey in this specific situation, the data collected will provide insight into possible solutions and help in improving the process in the long run.

3. Use Transactional NPS Surveys to get feedback after an Important Product Update 

Asking for customer feedback after a major product update can spare you from potential blunders, highlight successful interactions and suggest improvements. If you wish to understand audience reaction to a new product, creating a Transactional survey with an Product NPS Survey Templates will do wonders.

Transactional NPS Surveys or Relationship NPS Surveys? 

Relationship Surveys give data to help CXOs strategize on business improvement, while Transactional surveys produce data to help implement those improvements.

Transactional NPS input is perfect for finding out how a customer’s perception of your business can change dependent on a particular experience or interaction. 

Since Transactional NPS information is always focused on a particular item, or interaction, taking action becomes easy. The information collected is huge; you can identify pitfalls, and make quick upgrades based on customer feedback. 

Transactional NPS data is completely instantaneous. Without waiting to survey customers and analyzing changes in their experience, you can get important insights enabling you to make improvements quickly.

There are some drawbacks to Transactional NPS. Since it’s focused on a particular issue, it’s very tedious without automation. Fortunately, NPS survey software send interaction-based surveys to customers making feedback collection quick and simple.

Relationship NPS is great for investigating how your customers see your business for the long-term. Since multiple data points are available, you can track long-term changes and effects.

Both Transactional and Relationship Surveys have their pros and cons. The nature of your business and goals decides which one works best. 

Zonka Feedback provides enterprise solutions for organizations planning to capture Net Promoter Score using Tablet, Kiosk, SMS, Email feedback and more. 

Learn more about the Net Promoter Score (NPS)

Published on Aug 08, 2019. Updated on Oct 14, 2021.

Nikhil Dawer

Written by Nikhil Dawer

Aug 08, 2019

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