Happy business people shaking hands perfect for follow-up NPS

How NPS generates referrals

By Gavin Klose
Co-founder, Feedsy 


When you do great work for a client, you earn their trust and generate greatwill. But how do you know how likely this happy client is to recommend your services to anyone? And how do you ascertain how happy they are with your services, and whether there are any problems?

I am glad you asked, and luckily there’s a simple answer to them both: the Net Promoter Score, or NPS.


What is ‘Net Promoter Score’ (NPS) and what Makes it Special? 


Put simply, NPS is a survey tool designed to gauge a customer’s satisfaction. What makes NPS so special is how straightforward it is. NPS is based on a single question:

How likely is it that you would recommend our company/product/service to a friend or colleague?


Why is NPS Typically Used? 


According to leading research, NPS gives you an overview of how your company ranks in terms of customer experience. In other words, this one question gives you a good indicator of the goodwill–and hopefully greatwill–you’re generating.

NPS helps you leverage greatwill with referrals and identify flaws in the customer experience to then improve them.


Who Uses it? 


The better question is, who doesn’t use it? Here are just some of the top industry performers who’ve embraced NPS:

  • Porsche
  • Telstra
  • Bank of Melbourne
  • PayPal
  • Dell
  • HP

These are all forward-thinking companies who know that, in the face of increasing market competition, referrals and consumer insights are vital.


When to Use NPS 


Use NPS when you do something great for a customer. Whether you’ve offered them stellar advice or simply gone out your way to achieve a successful outcome for them, you’re in a great position to capture their feedback with the hope of converting it into referrals, and learn how you can improve your score.

You’re giving an unhappy customer a private channel to raise and resolve their concerns without them making their dissatisfaction public on social media!


How to Use NPS


Using NPS is simple.

First, you’re asking clients two broad questions:

  • “How likely is it that you would recommend us”; (1-10, 1 being unlikely, 10 being extremely likely) followed by
  • “Why did you give that score?”

Then, you divide your responses into three groups based on the score revealed.

  • NPS 9-10: very satisfied and likely to refer you. These are leads you should follow up for referrals and further feedback.
  • NPS 6-8: carefully consider their feedback and advise them if you make changes because of it.
  • NPS 1-5: consider contacting the customer to discuss their experience/concerns, and advise them if you act on the feedback to improve your service.

This one score shows you which customers are possible referral leads or reviewers and offers improvement insights as you build your business.



Feedsy can help automate your Net Promoter Score with its affordable FeedsyNPS.




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