Why Use A Net Promoter Score?

Why Use A Net Promoter Score?
Summary: Do you know the real benefit of measuring NPS? Loyal customers spend 67% more with a business than new ones and there is nothing better than NPS to measure customer loyalty.

Measure Net Promoter Score

So you’re thinking about measuring NPS. You’ve researched all about it, probably even found software to conduct NPS surveys but still have questions unanswered. What will NPS help you gauge? How is it different from other customer experience metrics? Does your company really need it? Do you really need to invest time and money into measuring NPS just because everyone tells you that you should? What are the best practices you should follow while measuring NPS?

Well, it’s no secret that NPS has gained a lot of popularity over the years and companies worldwide are tracking their Net Promoter Score on a regular basis. But we are not telling you to jump the ship just because everyone is doing it. Rather, we are here to help you learn all about NPS and decide if it works for you.

In this article, we’ll cover all this and more to help you learn more about the famous customer experience metric NPS. You must know clearly how NPS can actually help you before you firmly decide to spend your valuable time and resources in measuring the Net Promoter Score. Before we dive into knowing the benefits of measuring NPS, let’s understand first what NPS actually is.

What Is A Net Promoter Score?

NPS or Net Promoter Score is a popular metric to measure customer loyalty by asking customers about their likelihood to recommend a brand. The NPS question is: “On a scale of 0 to 10, how likely are you to recommend us to your friends and colleagues?”—where 10 is Most Likely and 0 is Not at all Likely.

On the basis of customers’ responses, NPS is calculated by subtracting the percentage of detractors from that of promoters. The Net Promoter Score lies between -100 to 100 where a positive NPS is generally considered good, implying that your business has more promoters than detractors.

Net Promoter Score Vs. Other CX Metrics (CSAT And CES)

Besides NPS, there are two other very popular customer satisfaction metrics used widely: Customer Satisfaction Score (CSAT) and Customer Effort Score (CES). The application of all these three differs and they can also be used in combination together to gauge customer feedback.

Let us evaluate some of the differences between these 3 customer satisfaction metrics:

Why Use NPS Surveys?

Despite having these 3 types of metrics, you may be wondering why NPS is the most popular, and companies usually focus on measuring NPS more than the other two. To understand this, let’s explore the benefits of measuring Net Promoter Score and where you actually need to use NPS:

  • NPS measures the likeliness of repeat purchases
  • NPS helps to track and improve the brand image in the market
  • NPS provides a quantitative measure of customer loyalty
  • NPS helps to set benchmarks for the business
  • NPS helps to track the overall growth of the business
  • NPS helps in making the right business decisions
  • NPS is simple and easy to use

Let’s learn how you can take benefit of the advantages of a Net Promoter Score.

  1. NPS measures the likeliness of repeat purchases
    65% of a company’s business comes from existing customers. If the existing customers continue to purchase and thus give you business, the business will sustain. But if the existing customers stop giving you business, it will be hard for the business to survive because acquiring a new customer is five times more expensive than retaining an existing one. NPS is a proven metric to gauge the tendency of the customers to repeat purchases and attract new business. This helps to ensure survival and ascertain the future growth of a business.
  2. NPS helps to track and improve the brand image in the market
    81% of customers trust recommendations from family and friends over those from companies. This proves the fact that brand image is a powerful identification of a company’s position in the market. The goodwill of any organization or brand has a direct effect on the sales and thus profitability of the business. The ultimate question of NPS directly asks the likeliness of the customers to recommend the brand, which is a great way to get information about the brand image. This helps to track the position in terms of brand image and motivates you to work on improving it.
  3. NPS provides a quantitative measure of customer loyalty
    The ultimate question of an NPS survey gauges customer loyalty in quantitative terms. The customers’ responses from 0 to 10 determine their loyalty to the brand. On this basis, the Net Promoter Score is calculated, which is again a quantitative measure of brand loyalty in the market. This helps the business to know their exact position in the market in the form of scores which can be used further to track improvement and competition.
  4. NPS helps to set benchmarks for the business
    NPS is a globally used metric to ascertain customer loyalty. With the help of NPS, you can easily track where your business stands in the competition. You can simply compare your NPS with the average NPS of your industry and set benchmarks against it. This helps you track your competitive performance.
  5. NPS to track the overall growth of the business
    When you want to rise higher toward success, you need to constantly improve, and NPS is a great tool to track this improvement. You can also set a benchmark of your previous year’s NPS and strive to improve on it the next year. This will help you track your success and let you know whether you are improving or not.
  6. NPS helps in making the right business decisions
    Net Promoter Score is not just a numeric score that tells you the position of your company and customer loyalty. It is much more than that if utilized properly! In order to utilize the real potential of NPS, you should not let your NPS survey be confined to a single-question survey. Rather, you must ask the follow-up question of NPS. In the follow-up question, the customers are asked the reason for their ratings. These reasons give you real customer insights. You get to know what they feel about your products and services and what made them feel so and turned them into promoters, detractors, or passives. This acts as a guide to take the required actions to Close the Feedback Loop and make effective business decisions that lead you toward growth by enhancing customer satisfaction.
  7. NPS is simple and easy to use
    One of the key advantages of NPS lies in its simplicity and ease of use. NPS surveys are quick to answer and thus generate a great response rate. There is mainly one question to ask, the likeliness of the customers to recommend a brand and another is the follow-up question asking the reason for the previous.


Customer loyalty and customer recommendations are more powerful than ever in today’s world. Customers turn toward businesses that go beyond just satisfying them, but instead delight them. And as a company, if you don’t put customer experience at the heart of what you do, then even if you offer a great product or service it may not be enough. Measuring customer loyalty with NPS surveys and more importantly, improving customer loyalty should be incorporated into your daily business dealings to yield great business growth.

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