What is NPS (Net Promoter Score)?

Net Promoter Score measures how likely customers are to recommend a company’s products or services to others.

The question is: “How likely are you to recommend our company to a friend or colleague?” You can rate it on a scale from 0 to 10.

We categorize customers into three groups based on their feedback scores: promoters (9-10), passives (7-8), and detractors (0-6).

To calculate NPS, you subtract the percentage of detractors from the percentage of promoters.

How to calculate the NPS score

What is relational NPS?

Relational NPS emphasizes the overall perspective. This gauges a client’s overall propensity to endorse your brand, considering their aggregate experiences.

We send this survey every few months to check how customers feel about our company.

Relational NPS involves gathering customer feedback regularly, typically every quarter or year.

The goal is to assess the overall relationship between the customer and the business. This helps to gain valuable insights into long-term loyalty and satisfaction levels.

When should you utilize relational Net Promoter Score

Relational NPS is ideal for companies aiming to evaluate the long-term stability of their customer relationships.

It gives a broad overview of customer feelings and loyalty, for strategic decision-making and long-term planning.

Use relational NPS to:

• Track customer satisfaction over time.
• Identify trends in overall customer sentiment.
• Benchmark your performance against competitors.
• Make strategic decisions about product development and customer service initiatives.

Best net promoter score (NPS) questions

Relational NPS surveys that you should send

When deploying relational NPS surveys, send complete surveys that include all areas of the customer experience, including product quality, customer service, and overall satisfaction.

These surveys should be sent at regular intervals to track changes in customer sentiment over time.

Keep your relational NPS surveys short and clear. Here’s an example:

• “On a scale of 0-10, how likely are you to recommend our company to a friend or colleague?”
• (Optional) Follow-up questions asking for the reason behind their score.

What is transactional NPS?

Transactional net promoter score, on the other hand, focuses on gathering feedback from customers immediately following specific interactions or transactions with the company.

It delivers insights into the consumer experience at important touchpoints and allows organizations to detect and address problems in real time.

Transactional NPS zooms in on specific interactions. It measures a customer’s satisfaction with a particular touchpoint, like a purchase, support interaction, or onboarding process.

Surveys are sent immediately after the experience for the most relevant NPS feedback.

When to use transactional NPS

Transactional NPS is best used for measuring customer satisfaction and loyalty at specific touchpoints along the customer journey. It enables businesses to quickly identify areas for improvement and take immediate action to enhance the customer experience.

Use transactional NPS to:

• Identify areas for improvement in specific touchpoints within the customer journey.
• Make quick, data-driven decisions to optimize specific experiences.
• Improve team performance within departments responsible for those touchpoints.

Transactional NPS surveys that you should send

When implementing transactional NPS surveys, focus on gathering feedback after key customer interactions, such as making a purchase, contacting customer support, or using a new feature.

These surveys should be sent promptly after the interaction to capture the customer’s experience while it is still fresh in their mind.

Transactional NPS surveys can be even shorter than relational ones. Here’s an example:

• “How likely are you to recommend our support experience to a friend on a scale of 0-10?”

Get the correct combination to improve your client experience

While both relational and transactional NPS offer valuable insights into customer satisfaction, utilizing a combination of both can provide a more comprehensive understanding of the customer journey.

By implementing both types of surveys, businesses can gain insights into the overall relationship with customers as well as specific touchpoint experiences, allowing for a more holistic approach to improving the customer experience.

Don’t see transactional and relational NPS as competitors – they complement each other. Use a combination to get a well-rounded view of customer satisfaction across different interaction points.

How to utilize the data you collect

Once you’ve collected NPS data, it’s essential to analyze it effectively and take action based on the insights gained. Identify trends, patterns, and areas for improvement, and develop strategies to address any customer issues.

Regularly monitor NPS scores and track improvements over time to ensure ongoing customer satisfaction and loyalty.

• Analyze the NPS score: Detractors need attention, Passives are on the fence, and Promoters are your champions.
• Read the open-ended feedback: Qualitative insights from follow-up questions provide valuable context for the scores.
• Take action: Develop plans to address detractors’ concerns, understand why passives aren’t promoters and nurture your promoters’ loyalty.

The key differences between transactional vs relational NPS

The primary difference between transactional vs relational NPS lies in the timing and scope of the surveys.

Relational NPS provides a broader view of the overall customer relationship over time, while transactional NPS focuses on specific interactions along the customer journey.

Both approaches offer unique benefits and insights, and utilizing a combination of both can provide a more comprehensive understanding of customer satisfaction and loyalty.

Choosing between transactional vs relational NPS

The choice depends on your goals. Use relational NPS for strategic insights and transactional NPS for tactical improvements. Ideally, use both for a comprehensive understanding of your customers.

When deciding between transactional and relational NPS, consider your business goals, the nature of your customer interactions, and the level of detail you need in your feedback.

If you’re looking to assess long-term loyalty and satisfaction, relational NPS may be the way to go. However, if you need real-time insights into specific touchpoints, transactional NPS may be more appropriate.

Optimizing customer experience: Strategic insights on transactional vs. relational NPS

By understanding the power of both transactional and relational NPS, you can gain a deeper understanding of your customers and use that data to continuously improve their experience.

This will lead to increased customer satisfaction, loyalty, and ultimately, business growth.

In conclusion, Net Promoter Score is a powerful tool for measuring customer loyalty and satisfaction, but the approach you take can significantly impact the insights you gain.

Businesses leverage customer feedback effectively when they know how and when to use each, driving improvements in the customer experience and enhancing overall success and profitability.

Ready to take your customer experience to the next level? Sign up for free today and experience Implementing Net Promoter Score (NPS) surveys. Whether transactional or relational, to understand and improve customer satisfaction.

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