How Tracking Your Net Promoter Score (NPS) Can Boost Your Referral Marketing

Team ThunderAct

Customer satisfaction is among the most important aspects businesses should focus on. It helps with customer retention and loyalty. At the same time, ensuring a great experience can lead to better business.


Net Promoter Score (NPS)

One of the most versatile metrics marketers can use is NPS. It is suitable for tracking the real and long-term results of a certain campaign.


Generally, NPS focuses on measuring customer satisfaction. It is a benchmark that will give you an insight into your clients and gauge their loyalty. But perhaps one of the biggest benefits it offers is you get to find out what customers are recommending your products or services to their peers. 


How It Works

Tracking NPS does not require complicated processes. In fact, you can measure and analyze customer data with just a single question. For instance, you can ask your clients how likely they would recommend your company’s products or services to their peers. Ask them to answer on a scale of 0 to 10.


Additionally, creating and distributing your NPS question does not take a lot of effort. You can include the question in your current customer satisfaction survey. Another option is to use software that will automate a follow-up questionnaire post-sale. 


Customer data analysis is the next step. Use the data you have gathered from your NPS survey. Check how your customers answered the question. Then, break their responses into three categories.


  • Detractors – These are individuals who answered between 0 to 6. 
  • Passives – The passives are those in the middle. They are people who gave a score of 7 to 8. While they are likely satisfied with their purchase, they are not 100% sure to actively promote your brand.
  • Promoters – If a customer gave a rating of 9 or 10, they are promoters. These are clients who are loyal to the brand. Their loyalty and satisfaction lead them to tell their peers and other people they know about your product or service. Not only that, they would recommend you and encourage other people to purchase from you. Thus, supporting your referral marketing efforts. 


The figures you should use are percentages of respondents falling into each category. Do not use raw numbers for your NPS measurement. The result of your calculation should also be a percentage.


By measuring NPS, you get an idea of how your clients feel about your product or service. At the same time, it lets you see which customers are not as satisfied with what you offer. Thus, helping you know what to improve.


Aside from these, NPS also allows you to get new customers organically. You can also consider the results of the NPS survey when thinking of how to improve or creating new campaigns so that you can turn detractors and passives into promoters.

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