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9 Reasons Why Using NPS Is Crucial For Your Business

Athira Unnikrishnan

7 May 2024

9 min read

Wondering why use NPS?

Net Promoter Score! NPS Surveys! NPS Software! One hears a lot of NPS nowadays.

Though there are various other metrics, like CSAT, CES, etc. to measure customer satisfaction and loyalty, NPS seems to have topped the charts! It has become so popular over the years that more and more companies have started adopting the metric to gauge client loyalty.

What’s all this noise about NPS?’

‘Is it just a hype, or is NPS a mighty good metric, then?’

‘Should we adopt the metric as well?’

‘Why use NPS?’

‘What is the importance of NPS over other metrics?’

Yes, you would have tons of questions regarding the desirability of NPS. But before delving into all that, let’s define NPS first and get a clear picture of what exactly it is.

What is Net Promoter Score?

Net Promoter Score (NPS) is a metric that measures customer loyalty and brand advocacy. Being one of the simplest metrics it can help you gauge customer loyalty with a single question, which is

‘On a scale of 0-10, how likely are you to recommend our product/service to your family and friends?’.

Your customers rate your services/products on a scale of 0-10, and based on the rating, they are categorized into three groups, namely:

Why use NPS


The respondents who have scored you a 9 or 10 fall under this category. They are your biggest supporters and will be more likely to recommend you to their friends, family, or colleagues.


Customers who have rated you a 7 or 8 are passive. They can’t be called happy customers yet they are not dissatisfied by your brand.


If any of your customers have given you a score ranging from 0 – 6, then they are detractors. They are unhappy with your service and are unlikely to recommend you to any of their close ones.

Why Use NPS?: 9 Top Reasons!

Why Use NPS - Infographics.

Now, here’s addressing your questions. Is it really worth the hype? Well, yes. Net Promoter Score is indeed worth all the hype and we would suggest you adopt the metric too. We are not assuming it because of the metric’s immense popularity but stating it owing to some solid reasons which prove the importance of NPS. We assure you that all your doubts will vanish into thin air once you take a look into these 9 reasons to use NPS. And take it from us; you will start using NPS in your organization sooner than you think!

1. User-friendly and simple implementation

Unlike some of its counterparts, NPS surveys do not come with a long list of incomprehensible questions. Essentially, there’s one main question that asks the respondent the likelihood of recommending the brand to family, friends, or colleagues, and this question may be followed by one or two open-ended questions. Overall, NPS surveys are quick, simple, and easy to understand, making it highly user-friendly.

By indicating the promoters, detractors, and passives, the NPS system helps you categorize your customers, which in turn lets you deliver them personalized services. Such a step can go a long way in helping your business grow. Moreover, the overall calculation of the net promoter score is no strenuous task. All you have to do is subtract the percentage of promoters from the percentage of detractors.

NPS = %Promoters -% Detractors

You can track your NPS regularly and analyze on what scale your business has improved or even deteriorated. And with NPS software in place, it becomes even simpler and time-saving. Be it calculation automating the surveys or even sending it through multiple channels, these tools take care of pretty much everything, making it all the easier.

If you are looking for a feedback tool to elevate your feedback game, You can Try SurveySparrow!

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2. Gather higher response rates

Time is one important element; the shorter your surveys, the better the chances for a higher completion rate. NPS surveys can be done and dusted in a matter of seconds! There’s a single, straightforward question, and customers find it easier to answer because these surveys don’t consume much of their precious time.

Some NPS surveys may come with a question or two besides the main one, but even then, it wouldn’t demand more than 5 minutes from the users. When the response rates are higher, you have robust, more reliable data in hand.

3. Collect more reviews

Having a good online reputation is very important for a business to flourish because a majority of your potential customers analyze online reviews before availing of your service. NPS helps you manage your online reputation by aiding in garnering more and more positive reviews. The biggest advantage of NPS is that it not only helps you collect more response rates but also lets you identify your biggest supporters, the promoters. And that’s when you score.

Ask the promoters to leave a review soon after they complete the NPS question by including an additional step exclusively for them with a link to your profile on review platforms like Facebook, Google, G2Crowd, etc. You should use an NPS survey tool that offers conditional logic.

You can also offer incentives and rewards for submitting a review, but ensure it is not portrayed as a tactic to buy more reviews. It should look and sound more like a token of gratitude from your side.

4. Analyse and enhance customer loyalty

Customer Loyalty can act as a magical potion and elevate your brand to great heights. In fact, 57% of US customers prefer spending more on brands they are loyal to. It is, therefore, vital to monitor loyalty regularly, and you can do it efficiently by using NPS.

First and foremost, the very focus of the net promoter score metric is to measure customer loyalty. So, when you ask the likelihood of being recommended to a customer, it gives you a chance to know how happy your customers are with you and also to find the loyal ones. You can keep track of the NPS score and analyze them after each survey by benchmarking your current score with the previous one to know if your business plans are working out.

If not, you can take decisive measures to improve your services. This is how you close the feedback loop. You first listen to your customers by collecting their NPS scores, analyzing them, acting on them, and growing by increasing customer loyalty. You don’t leverage your NPS survey until you close the feedback loop. So, do note that down.

Why use nPS

5. Increase customer retention and reduce churn

Phil Schefter and Frederick Reichheld, state that a mere 5% increase in customer retention rates can result in 25%-95% increase in profit. This is because your existing customers tend to make more purchases from you. Loyalty and retention rates are directly proportional. It’s a no-brainer. When NPS helps you improve loyalty by gathering more response rates and positive reviews, it is sure to reduce churn and increase customer retention rates. It is as simple as that, provided you close the feedback loop.

6. Boost CLV

Customer Lifetime Value (CLV) indicates the overall profit that a customer helps you acquire during their lifetime. By finding the promoters, detractors, and passives using NPS, you get to serve each group of customers accordingly. You can take necessary actions as per the feedback given by each group of customers, resolve the issues, and then notify them.

When that much is done, be it a detractor or passive, you can easily impress and convince them to continue availing your services. Your customers would then feel valued, and they are likely to stay with your brand for a longer period of time. You can gradually convert them into loyal customers by heeding and acting on their feedback. Thus, you can increase CLV.

57% of US customers prefer spending more on brands they are loyal to.

7. Benchmark against competition

NPS is one such weapon that can support you in cutting through intense competition and stand out in the crowd. Benchmark your NPS score with that of your industry’s average score and keep striving to reach and surpass it. It not only lets you overcome competition but also points out whether you are on the right track.

When you don’t benchmark your score with the industry average, you might miss the mark. You would keep conducting NPS surveys and take action to improve it, but your peers could be improving faster at the same time. So, when you keep track of the average of NPS in your industry, you also know at what rate you should keep improving and take measures about it.

8.  Identify the right time to upsell

Upselling is one of the finest ways to increase revenue—no second thoughts. But, like anything, there is a time to do it. You cannot upsell to any of your customers. It may not bring you the desired result, or worse, it can backlash. So, how do you know when and to whom you should upsell? NPS has got you covered there as well.

Promoters are the section of customers who are extremely happy with you. Identify your promoters by using NPS. This is when you can upsell. List out the promoters, contact them through mail or a call, and explain the possibilities of serving them better with your company’s supplementary services or products.

9. Create a stronger product

Building superior-quality products is one of the best and most obvious ways to grow your business. To deliver such a product, you must keep upgrading it to meet industry standards. NPS surveys can be used here as well. So, whenever you introduce a new feature in your product, you can send NPS surveys to your customers asking about the likelihood of them recommending it to their friends or colleagues.

You can then decide on keeping the feature as per the overall score. By following this continuous process, you can build a stellar product that your customers love, increasing loyalty and retention and reducing churn!

Use this NPS Survey template from SurveySparrow for free.

Why Choose Surveyparrow’s NPS Survey Software

SurveySparrow’s NPS (Net Promoter Score) Survey Software is equipped with several specific eatures designed to help businesses efficiently measure customer loyalty and satisfaction and then act on those insights. Here are some of the notable features:

  1. Customizable Survey Templates: Offers a variety of customizable templates that can be tailored to fit your brand’s look and feel, making your surveys more engaging and personal.
  2. Multi-Channel Distribution: This enables you to distribute your NPS surveys across multiple channels, including email, SMS, web, and social media, to reach customers wherever they are most comfortable providing feedback.
  3. Conditional Logic for Surveys: Incorporates conditional logic into surveys, allowing you to ask follow-up questions based on previous responses. This helps in gathering more detailed feedback and understanding the reasons behind your NPS scores.
  4. Real-Time Analytics and Reporting: Provides real-time insights into your NPS scores with detailed analytics and reporting tools that help you track performance over time, identify trends, and segment responses for deeper analysis.
  5. Integration with Third-Party Tools: Offers seamless integration with a wide range of CRM, marketing, and sales tools. This allows you to enrich customer profiles with NPS data and automate actions based on feedback.
  6. Automated Survey Reminders: Features the ability to send automated reminders to customers who haven’t completed the survey, increasing response rates without manual follow-up.
  7. Rich Insights with Qualitative Feedback: Supports open-ended questions that encourage customers to provide qualitative feedback, giving context to their scores and revealing actionable insights.
  8. Benchmarking and Comparative Analysis: This enables you to benchmark your NPS scores against industry standards or compare scores across different segments of your business, helping you understand where you stand and where to focus improvement efforts.
  9. Responsive Design for All Devices: Ensures that surveys are mobile-friendly and responsive, providing a seamless experience for respondents regardless of the device they use.
  10. Feedback Loop and Follow-Up Workflow: Allows businesses to close the feedback loop by setting up workflows for follow-up actions based on survey responses, helping turn detractors into promoters by addressing their concerns promptly.

These features make SurveySparrow’s NPS software a comprehensive tool for businesses looking to improve customer loyalty, retention, and overall satisfaction by leveraging the power of feedback

Winding Up

These reasons are enough to showcase the power of a metric as simple as the net promoter score. Even the who’s who of the business community has accepted the importance of NPS and is implementing it to thrive successfully. Popular brands like Apple, Amazon, Tesla, etc. depend on their NPS score to grow consistently, proving that NPS used the right way at the right time can make a difference.

Well, it’s about time you started using NPS too. Conduct NPS surveys at regular intervals of time, collect the NPS scores, identify your promoters, detractors, and passives, find your overall score, take necessary measures, close the feedback loop and see how it makes all the difference.

Net Promoter, Net Promoter System, Net Promoter Score, NPS, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld, and Satmetrix Systems, Inc.

Athira Unnikrishnan

Content Marketer at SurveySparrow

Just a plain soul enthralled by the power of words and the aroma of food!

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