Why NPS Matters: 8 Compelling Reasons for Businesses?

Jul. 08, 2024

Why NPS Matters: 8 Compelling Reasons for Businesses?

In today’s competitive business landscape, being a favorite brand of customers is a huge plus point. Not only does it allow you to get more sales, but it also results in getting you an audience that is loyal to your brand. With benefits like higher customer retention, lower acquisition cost, and better business growth, loyal customers are something that every business wishes for.

But how would you know whether you have a loyal consumer base or not? Here enters the role of net promoter score tool that has the capacity to evaluate your customer base and let you know how loyal your customers are. However, this is not the only reason for implementing this survey in your business. There are many, and we will discuss eight of them in this blog.

Explaining Net Promoter Score

Simple and effective are the two words that best explain the net promoter score. But these two words are not enough to know what this metric is. So, let's discover it in detail. 

NPS score is the metric that helps you to measure the promoters in your customer base. So, it lets you know about customer loyalty and satisfaction among your customer base. 

However, that's not the only thing it does. It also helps you to measure the passives and detractors in your customer base. Hence, you can also learn about the people who are unsatisfied with your offering and may churn away from your business soon.

The Full Scope of Net Promoter Score 

The best thing about this metric is that even when it's a simple metric, it offers a look into your business from various perspectives. It can uncover the overall performance of your company and the success of an individual operation. 

For instance, if you use it in one of your sales channels, like a website, you can know the performance of this particular sales channel. What's the experience of people shopping through this channel? Similarly, you can put it in your operations, such as marketing, product development, and many more. In totality, what you can measure with this metric is almost limitless. 

8 Reasons to Leverage NPS in Your Business

1. Simple and Straightforward 

Businesses and complexity should always be parallel to each other, trying to make no contact forever. It also applies to any business operation, including assessing its performance. Here, we get our first reason why you should use this metric to assess your performance. It is one of the most simplified ways to measure the aspects of a business that define its performance. 

With a question as simple as asking how likely you are to recommend us to others, you can find how loyal your customer base is, how satisfied they are, and the reasons behind the customers' dissatisfaction. Yes, you can even find the reasons for demotivation, and we will come to that, but first, let's see an example of a standard Net Promoter Score question: “On a scale of 0-10, how likely are you to recommend our product to your family and friends?”

2. In-depth Brand Assessment

Now, how come you know the reasons that are demotivating your customers to continue business with you? The secret lies in one of the types of this survey. TNPS, or Transactional Net Promoter Score, is a survey you send to your customers to know the score of a particular transaction, like customer service support. So, while a relational survey will give an overall score, the transactional one lets you identify the part of the business where the customer's experience isn't good. 

For example, if you launch a new feature for your digital product, you can send transactional surveys to see if it was a good update or not. A higher score for this survey means it was a good feature, while a lower score is the opposite. 

3. Easy to Track

While this survey is easy to send to customers through channels like SMS, email, phone, etc, keeping track of it is also very easy. The reason is that it is a simple calculation that needs no complex formula to be implemented. You just need the number of promoters, detractors, and total responses to find out your score, and that's why NPS software like SurveyCXM by QDegrees is very simple to use. 

Now, why is there a reason to use it? Because the way it is calculated makes it possible to keep track of your score regularly. So you can be aware of whether or not you are achieving your goals. 

4. Benchmark Against Competition

Now, talking about goals, one goal can be being better than others in your space. It's a common identifier of your growth to be ahead of your competition. Being a globally recognized metric, you can easily put yourself side by side with the industry NPS benchmark. 

If your industry's benchmark is 35, you can take it as the average. So, if you have a score of more than 35, let's say 42, you are better than many of your competitors. 

5. Customer Loyalty Analysis

As we discussed in the first point, this metric helps assess a brand based on multiple aspects, one of which is customer loyalty. It is one of the reasons why you should invest in it, as customer loyalty is undoubtedly an important measure. If you ask why, then the answer is that as a result of a 5% increase in customer loyalty, your profits increase by around 85%, according to Bain & Co. So, that's the reason why keeping track of customer loyalty is crucial, and there is nothing simpler than a net promoter score to measure it regularly. 

6. Reduces Churn

Building a great experience requires aligning multiple positive experiences for customers one after the other. However, according to PWC, for 32% of the customers, it takes only one bad experience to decide to churn from the brand. 

Hence, you need to know about these customers before they churn their decision and take steps to retain them. Here, NPS helps you with its capability to identify detractors and passives who are on the verge of churning or are slowly turning into potential ones to churn. 

7.  Higher Response Rate

No matter which metric you talk about, a key identifier of its own success is the response rate. That is also the reason for using this survey. The response rate to net promoter score surveys is high because of its interactive design, which allows customers to just click a single click to respond. And how can we miss that it has so many means to send so you can cover all your audience regardless of the platform they are available on? 

8. Higher Upselling Opportunities

With NPS, you identify detractors, passives, and promoters. Promoters, your most loyal customers, are also the ones who are most likely to buy more from you. Hence, you can mindfully upsell to these customers instead of doing guesswork for upselling. And there's no doubt that upselling directly increases your revenues. 


To wrap up, these are the 8 reasons why you should implement a Net promoter score program in your business. However, sending and extracting insights from surveys is a task in itself. But you do not have to worry as QDegrees is here to help you. With SurveyCXM, you can streamline your NPS program and get powerful insights. As a result, you will be able to build a loyal customer base for your business.