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NPS reveals how satisfied your customers are, which helps predict their loyalty and informs your business growth forecast.\u00a0\u00a0<\/p>\r\n
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Yes, NPS surveys are simple to use, which is one of the biggest upsides. But what about its shortcomings? Is an NPS survey the best way to assess your customer satisfaction?\u00a0<\/p>\r\n\r\n\r\n\r\n
In this post, we look at the advantages and disadvantages of NPS surveys, as shared by 49 marketing experts.\u00a0<\/p>\r\n
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(We\u2019ve also addressed how companies can best use net promoter scores. Read our other roundup that shares a simple tactic to maximize your company’s use of NPS surveys<\/a>.)\u00a0<\/p>\r\n\r\n\r\n\r\n To establish a baseline for our survey, we first asked companies how often they send out NPS surveys.<\/p>\r\n Interestingly, some marketers choose to send NPS surveys based on events.<\/strong> Our survey shows 12% of marketers send surveys to newer customers at set points in their customer lifecycle. Another 6% send surveys to all customers, only after major brand or product updates.<\/p>\r\n\r\n\r\n\r\n <\/p>\r\n Next, we asked the companies about who they survey.\u00a0\u00a0<\/p>\r\n\r\n\r\n\r\n More than half of marketers, at 53%, survey all of their customers regularly.\u00a0\u00a0<\/strong><\/p>\r\n\r\n\r\n\r\n Others were a bit more selective:<\/p>\r\n\r\n\r\n\r\n Primary buyer = the person who bought the product at a company, and who was the point of contact for a sale (in instances where there are multiple users of a product at a business)<\/em><\/p>\r\n\r\n\r\n\r\n Finally, we inquired about the response rates of these NPS surveys. As it turns out, response rates vary widely.\u00a0<\/p>\r\n\r\n\r\n\r\n The largest percentage, at 20% of companies, receive an average NPS response rate of 41-50%.<\/strong><\/p>\r\n\r\n\r\n\r\n All in all, the majority of companies see NPS response rates between 11% and 50%.<\/p>\r\n The average NPS survey response rates seem on par or even slightly better than those of other customer surveys.<\/div><\/div>\r\n\r\n\r\n\r\n Let’s look at the pros of using NPS surveys, according to marketing experts:\u00a0<\/p>\r\n\r\n\r\n\r\n\r\n\r\n One of the main benefits of NPS surveys is how easy it is to send, fill out, and understand.<\/p>\r\n \u201cThe NPS scoring system makes it easy to see the big picture results, even for company stakeholders who may not understand the entire depth of your marketing efforts,\u201d notes Devin Johnson of Kennected<\/a>\u00a0.\u00a0<\/p>\r\n \r\n\r\n<\/p>\r\n Miranda Yan from VinPit<\/a> elaborates: \u201cNPS is not only convenient for the customers, but also for companies that are burdened with bulk data. It gives an overall perspective about the performance of your company and how customers feel about your business. Other customer satisfaction surveys are mostly product- or service-specific, which doesn\u2019t offer an overall viewpoint. But NPS has an upper hand over this aspect as well.\u201d<\/p>\r\n In a nutshell, \u201cthe simplicity of the NPS is great,\u201d says Jennifer Dinnen of MacKenzie Corporation<\/a>. \u201cIt can be tracked over time and it is easy to explain throughout the company. In theory, you are also able to benchmark against others to see how you are doing.\u201d<\/p>\r\n Another advantage of NPS surveys is it’s easy to use and understand for businesses just starting to measure customer satisfaction.<\/p>\r\n\r\n\r\n\r\n Suneha Dutta from Fundsquire Pty Ltd<\/a> makes this point: \u201cNPS is great for companies that are just starting with CX. Unlike other types of surveys, it helps paint a longer-term picture for the brand. The biggest advantage of using an NPS score is it acts as a compass, especially for brands who don\u2019t know where to start looking. It\u2019ll give you a snapshot of where you may be winning or losing, who your fans and naysayers are, what segments you should focus your future marketing endeavors on.<\/p>\r\n\r\n\r\n\r\n\r\n\r\n \u201cThe key thing to remember though is that at the end of the day, NPS is just that \u2013 a tool. It shows you the problem, but it\u2019s on you to find the solution.\u201d<\/p>\r\n\r\n\r\n\r\n \r\n\r\n<\/p>\r\n Customer referrals are a proven driver of business growth<\/a>. And NPS surveys help determine the likelihood of your brand getting these referrals.<\/p>\r\n \r\n\r\n<\/p>\r\n \u201cOne of the best and most natural ways to grow your business is by word of mouth<\/a>. It generates product recommendations from happy customers and converts prospects more effectively than most other marketing strategies,\u201d agrees Nathan Murphy from QuizBreaker<\/a>. NPS surveys give you a clear idea of the social proof<\/a> your product has in the eyes of consumers, which is essential when trying to increase sales.\u201d<\/p>\r\n \r\n\r\n\r\n\r\n<\/p>\r\n \u201cThe fact that [the survey] directly asks the question of whether or not the customer will recommend a brand to others is very powerful,\u201d shares Eye7.in\u2019s<\/a> Rahil Chaudhary. \u201cYou immediately know whether you have served the person to their expectations, and whether or not you can expect repeat business from them.\u201d<\/p>\r\n \r\n\r\n<\/p>\r\n As Jitesh Keswani from e-intelligence<\/a> puts it: \u201cOne of the biggest advantages of the Net Promoter Score<\/a> is it measures the likelihood of both new and repeat business, which helps measure overall business forecasts as well.\u201d<\/p>\r\n \r\n\r\n<\/p>\r\n Jasper Juhl of Better Estimate<\/a> is on the same page and compares NPS surveys with other survey types. \u201cThe biggest advantage of NPS is getting more accurate results, as it takes into account whether customers would recommend your business to others. Meanwhile, other satisfaction surveys only measure how satisfied customers are with their experience at your company.\u00a0Satisfaction surveys also do not segment people who have had good experiences versus those who have had bad experiences. They don\u2019t provide an accurate picture.\u00a0<\/p>\r\n \r\n\r\n\r\n\r\n<\/p>\r\n \u201cIn contrast, NPS provides businesses with an understanding of their promoters (those who will recommend the company) and detractors (those who won’t ever recommend). It also tells the business what it can do in order to improve future customer relations, through making changes that make both the promoters and detractors happier.\u201d<\/p>\r\n\r\n\r\n\r\n As for the shortcomings of NPS surveys, our survey highlighted three major issues:\u00a0<\/p>\r\n\r\n\r\n\r\n Even though NPS surveys are convenient to use, Better Estimate\u2019s Jasper Juhl says, \u201cNPS can be expensive and time-consuming to implement.<\/p>\r\n\r\n\r\n\r\n \u201cIn order to find out what your company’s score is on this type of survey, you will have to collect data from at least 10% of your customers who are willing to participate in the survey.<\/p>\r\n\r\n\r\n\r\n \u201cFor best results, it\u2019s also beneficial to have an expert consultant who specializes in measuring net promoter scores to help design and execute the surveys for you. This can cost $4,000-$20,000 per yearm depending on how many employees are involved and whether they specialize more on measurement or consulting work.\u201d<\/p>\r\n\r\n\r\n\r\n Another downside is the lack of context behind the survey scores. Put simply, the survey tells you if customers will recommend your business, but it fails to show the reason behind their choice.\u00a0<\/p>\r\n\r\n\r\n\r\n VinPit\u2019s Miranda Yan explains: \u201cThe biggest disadvantage of using NPS is the dearth of accuracy. It will tell you the percentage and estimate of your company\u2019s performance, but when it comes down to providing reasons for such results, it proves to be less effective. Other customer satisfaction surveys are more product-centric. These will let you dig deep into the results and furnish detailed information.\u201d<\/p>\r\n\r\n\r\n\r\n\r\n\r\n Devin Johnson from Kennected agrees that \u201c[the survey] isn\u2019t great at determining the customer\u2019s satisfaction with individual product and service offerings.\u201d<\/p>\r\n\r\n\r\n\r\n The solution? \u201cIn these cases, using custom-designed surveys and open-ended questions has been incredibly helpful for us to see where products are hitting and missing the mark,\u201d says Johnson.<\/p>\r\n\r\n\r\n\r\n33% of companies send NPS surveys every quarter<\/h2>\r\n\r\n\r\n\r\n
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<\/figure>\r\n\r\n\r\n\r\n53% of companies send NPS surveys to all their customers<\/h2>\r\n
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<\/figure>\r\n\r\n\r\n\r\n54% see higher response rates with NPS (compared to other types of surveys)<\/h2>\r\n
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<\/figure>\r\n\r\n\r\n\r\nAdvantages of NPS surveys\u00a0<\/h2>\r\n\r\n\r\n\r\n
It’s easy to use and easy to understand<\/h3>\r\n
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It’s great for those just starting with customer surveys<\/h3>\r\n\r\n\r\n\r\n
It gives you an idea of which customers will recommended you to others<\/h3>\r\n
Disadvantages of NPS surveys<\/h2>\r\n\r\n\r\n\r\n
It’s time-consuming and potentially expensive<\/h3>\r\n\r\n\r\n\r\n
The survey results lack accuracy<\/h3>\r\n\r\n\r\n\r\n