NPS Surveys: Harnessing Customer Loyalty Insights to Minimize Churn

Imagine losing a customer not because of your product, but because a customer had a bad experience they just had to share. This happens more often than you think. According to Bain & Company, unhappy customers are responsible for more than 80% of negative word-of-mouth. This can be a silent killer for your growth!

Fortunately, NPS surveys offer a powerful way to uncover these hidden frustrations. Many companies are leveraging NPS surveys to identify areas for improvement, get a comprehensive understanding of customer loyalty, and increase their Net Promoter Score to a staggering 85+.

Companies with a high NPS (above 70) tend to grow at more than twice the rate of their competitors in the same industry. Now imagine if you have leveraged NPS surveys and increased your NPS score to 85, then you would outpace your competitor that has an NPS below 70 and grows at a rate of 10% annually by approximately 25%. If the revenue in the first year for both companies is 100 million, then by the 5th year, your company would make a profit difference of 144.13 million.

Just think about the millions you could add to your bottom line by using NPS surveys!

By leveraging NPS surveys, you can get a direct line to customer sentiment and identify hidden frustrations before they snowball into lost business.

In this blog, we’ll delve into everything you need to know about NPS surveys, including their types, significance, creation process, implementation strategies, key touchpoints for utilization, and how to act on NPS results. Let’s get started!

TL;DR
NPS surveys measure customer loyalty and satisfaction based on the likelihood of recommending a product/service to others. They can be of two types: Relationship NPS surveys (conducted periodically) and Transactional NPS surveys (triggered by interactions).
NPS is calculated by subtracting the percentage of detractors from the percentage of promoters, resulting in a score ranging from -100 to 100.
Implementing NPS surveys helps you analyze customer sentiment, identify improvement areas, predict business growth, enhance retention & loyalty, and benchmark against competitors.
You can use NPS surveys at various touchpoints in the customer journey, such as after a purchase, a customer support interaction, or other key interactions across industries.
Zonka Feedback is a powerful NPS software that helps you engage with customers, measure their loyalty, and identify ways to prevent churn through its NPS surveys. You can sign up for a 14-day free trial or schedule a demo to see how it turns out for your business!

NPS Surveys: Harnessing Customer Loyalty Insights to Minimize Churn