NPS: What is Net Promoter Score and how does it measure customer satisfaction?

Customer Satisfaction

NPS: What is Net Promoter Score and how does it measure customer satisfaction?

The NPS – Net Promoter Score – is used by many companies that want to optimize their processes and offer products and services that make more and more sense to their customers.

Likewise, businesses that fail to apply the NPS strategy correctly end up compromising their future in the medium and long term.

Always satisfying the consumer – and increasingly – is the scenario that all companies seek daily, isn’t it? Investing in customer relationships is and always will be the way out.


Even more to improve the commercial results of any business. This will enable companies to scale sales and grow.

And for this to happen it is not always necessary to carry out large marketing campaigns. Reaching new customers will be easier.

Even today, traditional word of mouth is still a very effective strategy. However, these indications come at a price: customer satisfaction.

Do you think this is a subjective concept and that it is not possible to measure it? Then it’s time to find out what NPS is!

In this article, we explain its concept, its importance and the benefits of the application. We also cover practices to apply and measure the results of this strategy.

Also, understand how an Online CRM helps this mission.

Come on? Good reading!

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After all, what is NPS?

The NPS, or Net Promoter Score, is a tool to measure your customer’s satisfaction index. And also to measure the quality of services the company offers.

As a consumer, it is possible that you have already participated in such an initiative.

Although it can be expressed in different ways, the essence of the main question is the same.

“On a scale of 0 to 10, how much would you recommend Company X to a friend?”

Although simple, this question is important. So much so that it became known as “the definitive question” among managers of this methodology.

Nobody indicates something bad to a friend, right? Therefore, it synthesizes the customer’s perception of the shopping experience as a whole.

Some companies ask a qualitative question after this quantitative assessment. It serves to collect more data about the customer’s bill.

The NPS calculation, however, does not involve the second question. In fact, it works like this. Notes between:

  • 0 and 6.   Detracting customers, who have the potential to openly criticize your company.
  • 7 and 8. They are neutral customers, who use your products or services when necessary.
  • 9 to 10.   Promoter customers, who had their routine positively impacted by their company. They are enthusiastic, and have a good chance of publicly praising your company.

To calculate the NPS, just make the difference between the percentage of Promoters and Detractors customers.

If your research collected 100 testimonials, with 85 prosecutors and 15 detractors, your NPS is 70.

Fred Reich held, creator of the concept, argues that NPS can be used as a performance indicator (KPI) of growth.

That’s because customer loyalty is one of the most relevant factors in generating sustainable growth.  NPS, Net Promoter Score

How important is it?

The results obtained through the NPS are used to measure the customer satisfaction index. This you already know. But does not stop there.

By categorizing the responses, it is possible to identify some types of customers and what engagement they have with your brand.

Are they satisfied and recommend your company? Or are they dissatisfied and may issue unfavorable opinions? Which one predominates?

Don’t just stop at analyzing the percentage of happy customers. It is crucial to analyze the reasons that the customer indicated for their satisfaction or dissatisfaction.

What are the benefits of the system?

Once you’ve figured out what NPS is, it’s time to understand how your business can benefit from it.

In fact, it’s simple. Instead of planning big marketing actions to capture customers, you can simply improve your processes to reduce churn.

Churn is the greatest enemy of the Customer Success team. It is the number of customers who cancel within a given period.

In other words, consumers who leave your company. So using NPS data improves your service.

As a result, it helps satisfy consumers, which will increase referrals and reduce churn.

Thus, the CAC, acronym for Cost of Acquisition of Customers will be reduced through word-of-mouth.

And customer loyalty will promote a very constant and more profitable relationship.

5 best practices when using the Net Promoter Score in your company

Learning how to use NPS in your business is as valuable as knowing the route on a car trip. Misuse or not using the method can lead your company down the wrong path.

Often even bankrupt it. Are you still not sure how to make good use of this metric to drive service actions?

Nor selling and developing your company?

See now 5 great practices. They can help you increase your customer engagement with your business!

1. Know when to ask

Using NPS once seems like enough for some, but it’s a serious mistake to think so. It takes constancy and attention to your customer.

And that means establishing a cyclical NPS enforcement system. Make it a habit to send quarterly to get feedback from your customers.

This is an adequate time for the client and for your company, which will be able to analyze the results with peace of mind.

Use the 1% rule, which means interviewing 1% of your customer base a day.

2. Establish an individual relationship

Value each customer’s response. When you send out a survey and your customer responds, it’s because he’s interested in showing you what he thinks.

Give feedback, even if it’s a simple thank you. This will fulfill your NPS, i.e. it will close the loop. Even if your client is a detractor, liability or promoter, give an answer.

It’s something that encourages keeping the relationship going. And it is a considerable factor to help in lead generation.

3. Analyze and segment


When you receive the NPS measurements, calmly review the results. Take time to go beyond the numbers.

Remember that using NPS is about showing more than just who likes and dislikes your product. It is related to customer loyalty. And with what he thinks of your brand and supports the construction of branding.

4. Understand the motivations

When analyzing the return of NPS think about the reasons and observe the trajectory of your customers. If someone is a detractor, has he always been that way or was he a prosecutor before?

If you’re a promoter, what made you see your brand that way? Use NPS to understand your customers and get the insights.

From there, set objective goals that will ensure greater engagement with them. Your goal is to improve your customers’ satisfaction. And NPS is vital to that.

5. Leverage your promoters

It’s true that no one likes to hear that they’re talking bad about you out there. But is that the only focus? Many companies prioritize resolving the situation with defamers.

Strangely, they end up forgetting about those who are keeping their brand: the promoters. It is crucial to make use of this valuable information to define an action plan.

As well as use it to nurture your lead generation tools too. Also, don’t forget to make use of social media to expose this full support of promoters.

After applying NPS, what to do? See 4 measurements after the survey!

Now you know that to increase the NPS rating, let’s go one step further. You need to make the experience of consumers with your company even better, right?

Make the team aware of the results obtained. Reverse the situation with those who have been categorized as “detractors”. And strive to get the maximum score between 9 and 10.

Use all criticisms as a factor to optimize your company’s processes. Assess the necessary measures so that mistakes are not repeated.

How to do this? Check out 4 measures that can be taken:

1. Make your team aware

Results need to be communicated to the team. Everyone should know what NPS is and how it impacts the company’s success.

Only then can they know the customer’s perception of the processes they carry out. And, thus, understand that their performance influences the evaluation of customers.

2. Use critiques to optimize processes

Discover ways to resolve customer service issues. Eliminate bottlenecks and implement measures to optimize processes and prevent errors.

A good way out for this is to apply the agile methodology. It encourages the constant exchange of knowledge and improvement.

3. Deploy improvements based on customer feedback

Through customer feedback, identify areas that cause dissatisfaction. Insufficient information during the sale? Delivery delay? Low quality of products?

All of this could be among the reasons for complaints. And you need to be aware of them. Forward each of them to the responsible sector.

There is a rush to improve the customer’s purchasing experience and processes. It’s good practice. In fact, the only one to satisfy consumers and reduce churn.

4. Activate Customer Success

To ensure that the customer is satisfied, it is essential to activate your customer success team. It is possible to turn a detractor into a brand advocate. Nothing is lost.

Small actions can help along this path. An agile support. Trainings. Create really useful materials. An offer that enhances your product experience.

Analyze how your best customers use your solution. And show this detractor the way.

How can a CRM tool help improve NPS?

Now that you know the importance of NPS, the question remains. What strategies can be used to leverage this index? The answer may lie in the CRM tool.

But for that, understanding what CRM is essential for its successful use. A CRM strategy involves recording information provided by the customer.

This throughout the entire sales process. Thus, in the first contact of the customer, the company must register him in the CRM tool.

It’s something that will make it easier for you to understand the prospect’s challenges and pains. With the contact information in hand, it’s time to act.

The SDR team takes the first approach to understanding how we can help you. The contact really needs to generate value for him.

The experience and satisfaction of this customer are already paying off.

Organized processes

For this work to occur in the best way, you need to have a sales funnel structured within your sales system.

This contact is also useful for receiving feedback and conducting satisfaction surveys (such as NPS), allowing the company to improve its products and services with immediate actions.

As shown above, NPS is an excellent way to understand customer satisfaction.

When a company operates with a focus on the consumer, with effective communication, the chances of receiving better feedbacks increase, as well as the cost of sales being reduced.

Explore the features of a CRM tool and invest in the relationship with your customers and prospects, seeking transparent communication and prompt actions based on feedback received!

So, how can we help you?

Enjoy and read two articles that might be useful for you and your business.

The first talks about the importance of following up on all stages of the customer’s purchase journey.

The second one talks about how to structure an efficient and complete after-sales funnel.

Good sales!

The NPS – Net Promoter Score – is used by many companies that want to optimize their processes and offer products and services that make more and more sense to their customers. Likewise, businesses that fail to apply the NPS strategy correctly end up compromising their future in the medium and long term. Always satisfying the consumer…