Customer Experience

Use Net Promoter Score to Create a Customer-Centric Business

Use Net Promoter Score to Create a Customer-Centric Business

The Net Promoter Score (NPS) is a simple yet effective metric for measuring overall brand loyalty for your organization. NPS is a quick and easy survey that helps you identify your promoters – customers that have a positive impression of your brand and actively promote it within their social network, and detractors – customers who are unhappy with their experience of your brand.

While it’s tempting to focus on your detractors, you must also focus your efforts on engaging with and getting the most out of your promoters.  You must focus on the feedback your promoters give during the Net Promoter Survey® and act on it. This is a great way to increase customer loyalty and cultivate goodwill ambassadors.  

NPS feedback is key for understanding how customers feel about the brand and the organization, and to create actionable insights that create customer loyalty. Asking the right questions and following up is key. There are a number of ways organizations can leverage their NPS data to build customer loyalty and even go beyond.

Close the Feedback Loop Faster

The NPS survey can capture memorable experiences and overall loyalty to the brand. NPS can help companies close the feedback loop quickly by ensuring relevant feedback reaches customer-facing employees and teams who can implement it.

Real-time feedback and reports & analyses from surveys apps, and online surveys can help identify promoters so appropriate strategies for increasing customer loyalty are put into action quickly and effectively. Most of the factors that affect customer loyalty are actionable in the short term – such as rewarding loyal customers with additional exclusive offers and experiences, sending personalized messages relevant to the customer, and more.

You can also get NPS for individual locations, as well as an overall Net Promoter Score for your company, and compare across multiple outlets, or branches, to identify specific locations that might need improvement, and those that are doing well. You can use the data and insights from location comparison reports to find out how their success could be applied to your other locations.

NPS Feedback Data Segmented by Location

Improve Customer Engagement and Convenience

Since NPS surveys help identify customer opinions, NPS data in conjunction with follow-up questions, when used effectively, can help organizations to identify and increase customer engagement and convenience. NPS survey templates can help you ask follow-up questions based on response logic so you can create actionable strategies for increasing customer loyalty from the responses you receive.


NPS Feedback Survey Question

Follow-Up NPS Question for Feedback

American bank USSA has a Net Promoter Score of 75 – one of the highest in the financial services industry – achieved through focused initiatives that reduce customer effort and deliver superior customer service. Due to these initiatives customers can check their balance via text message, customers can instantly attach photographs and voice recordings to insurance claims which the bank can initiate remotely, and more.  

Identify High-Priority Customer Episodes

Leading companies are making a shift to managing the customer experience through customer episodes. A customer episode includes end-to-end activities required for a customer to perform a task or fulfill a need, and includes all the shopping, usage or service activities that go into it.

You can benefit from the customer episode approach – as you can map, perform and monitor the entire range of activities that go into meeting the customer’s need within the customer episode, instead of by individual teams or functions working in silos.  

To improve entire episodes, the company must manage key episodes directly and repeatedly. The net promoter score is a great tool for identifying which episodes, among many, the company must address first. The share of customers giving a low NPS can be used to map episodes that cause the most pain – and must therefore be addressed as high priority.

A telecom provider mapped two dozen episodes based on share of detractors and call volume to identify the episodes that needed the most attention.

The episode approach improves the customer experience and loyalty, provides benefits to the customer such as faster and intuitive transactions, and benefits for the organization – it can reduce costs, reduce training needs, employee attrition and testing costs for future IT changes, and reduce overall complexity.

Integrate NPS Feedback with Other Analytics for Real-Time Information

Companies across industries are using predictive analytics to describe, anticipate and improve customer interactions. NPS data fits in naturally here – you can use NPS feedback generated over time to identify trends in customer issues, and in conjunction with predictive analytics to develop strategies to solve problems as they occur, or even before they occur, and to act quickly on feedback.

Insights gained from NPS feedback – which offers a broader view of the customer’s experience and intent – when integrated with social media analytics can capture consumer sentiment in real time. The use of NPS for a more holistic approach to business can improve operations, reduce costs, improve engagement with stakeholders are more.

Build a Customer-Centric Organization

NPS feedback data, when used effectively, can help build a customer-centric company. However, most organizations struggle with this. To leverage the net promoter score to improve your business, you must ensure that NPS data is seen as reliable, NPS feedback flows to frontline employees and others responsible for customer experience, and you must understand loyalty economics – essential for calculating a customer’s lifetime value.

Adidas, the sportswear brand, tracks customer experience using the net promoter score and aligns senior executives and the entire organization around consumer priorities. It uses NPS to identify topics of detraction, finds out the business impact of those topics, the strategic relevance and ease of implementing fixes. It even ties employee bonuses to the brand’s NPS relative to competition.

In the pharmaceutical industry, one of the least customer-facing industries, companies that use NPS effectively outperform their peers on multiple dimensions – they display higher market shares, faster growth, and 2.5 times more successful adoption of new products.

They use NPS feedback to identify what customers value beyond the product and allocate resources accordingly, they react to changing customer needs quickly and use feedback loops effectively to translate valuable insights into impactful actions, and consequently, create a customer-focused company.

Use the Net Promoter Score Feedback to Help Support Teams Help Internal Customers

End-to-end customer satisfaction aims to make your internal customers happy, so they can work to satisfy your external customers. Internal NPS is a great way for support functions like HR, IT, administrative and operational departments to improve how they support their internal customers – other teams and departments.

These functions can use NPS feedback to celebrate successes, identify failures and their root-causes, and even escalate issues to appropriate senior executives or functional teams.

E.ON, the energy company uses internal NPS for end-to-end feedback for their HR, IT and even audit functions. Earlier E.ON’s auditors sent detailed feedbacks to units they had audited but only received a response rate of 20-25 percent. The shorter NPS requests, on the other hand, have led to interesting feedback – that auditors share key learning with the rest of the organization.

The NPS Survey is an essential element in identifying promoters, and building their loyalty through a customer-centric focus. However, most organizations struggle to use NPS to its full capacity. You must turn reliable data and feedback into actionable insight.

Start measuring Customer Loyalty with NPS Surveys

Learn more about the Net Promoter Score (NPS)

Published on Aug 28, 2018. Updated on May 20, 2022.

Niyati Behl

Written by Niyati Behl

Aug 28, 2018

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