NPS Tracking Explained: How to Monitor & Act on Feedback

Are you tracking your NPS program correctly? Is it truly on track?

Because if your NPS program isn’t consistent or lacks real-time insights, you might be missing the bigger picture. 

So, is your NPS tracking giving you the right data to grow? Are you leveraging the right NPS software to do it correctly? Let’s find out!

What is NPS Tracking?

NPS tracking is the process of creating a continuous cycle of measuring, analyzing, and reviewing your NPS score to understand where you stand in terms of customer loyalty and satisfaction over time.

This process involves collecting feedback from multiple channels, monitoring trends over time, benchmarking NPS against competitors, and analyzing and taking actionable insights in a prioritized manner. So, instead of launching the one-time survey, NPS tracking helps businesses spot patterns, address pain points in real-time, and make data-driven decisions to improve customer relationships.

But is it important?

Why Does NPS Tracking Matter?

NPS tracking gives you a clear, and measurable view of customer loyalty. Here’s why it’s important.

• Predicts Business Growth: Higher NPS means more loyal customers who drive referrals and repeat business. According to Bain & Company, loyal customers spend 67% more than new ones and are more likely to refer others.
• Identifies Pain Points: Regular NPS tracking helps spot trends and pinpoint what’s working and what’s not. 65% of customers said they have changed to a different brand because of a poor experience, making it crucial to address concerns early.
• Reduces Churn: Monitoring NPS helps identify detractors before they leave. According to HBR, a 5% increase in customer retention can boost profits by 25% to 95%. Addressing negative feedback promptly can turn dissatisfied customers into loyal advocates.
• Enhances Customer Experience: Customers who feel heard and valued are more likely to stay engaged. A study by PwC found that 73% of consumers consider customer experience a key factor in their purchasing decisions – tracking NPS ensures you continuously improve interactions.
• Measures the Impact of Changes: Whether you’re rolling out a new product, improving customer support, or adjusting pricing, tracking NPS over time helps gauge how these changes affect customer sentiment. 

Let’s now dive into how to track NPS the right way.

How to Track NPS Effectively?

Tracking NPS isn’t just about sending surveys – it’s about gathering meaningful insights, analyzing NPS feedback, and taking action to improve customer loyalty. Here’s a step-by-step guide to tracking NPS the right way.

1. Choose the Right Survey Distribution Channel

Not everyone is available on just one channel, whether it is email, social media, or in-app surveys, your customers are spread across multiple channels. This is why gathering feedback from multiple channels, keeping track of it, and having a unified view of your customer’s journey is crucial.  Research shows:

• 60% of customers prefer to be conducted via email
• In-app surveys have a response rate of 15%-25%
• And SMS has a response rate of 45%.

Now utilizing only one or two channels for survey distribution will end up costing you as you might be losing customer insights.

With SurveySensum you can streamline the collection of customer feedback, complaints, and reviews from various sources into a centralized platform, gaining a comprehensive overview of customer sentiment. The platform’s automated data cleaning and standardization features ensure that the data is cleaned for analysis, saving valuable time and resources. This integrated approach facilitates a deeper understanding of the customer experience, enabling you to make data-driven decisions that enhance customer loyalty toward your brand.

2. Decide on the Right Survey Frequency

When should you send an NPS survey? The timing of your survey determines the quality of the responses you receive. There are two types of NPS surveys:

• Transactional NPS: Sent immediately after a key interaction (e.g., post-purchase, customer support interaction, or after using a feature). This helps you measure real-time satisfaction and identify areas needing improvement.
• Relationship NPS: Sent periodically (e.g., quarterly or annually) to gauge long-term customer loyalty and overall satisfaction with your brand.

For example, a SaaS company may send tNPS after a customer interacts with support and rNPS every quarter to assess overall satisfaction.

3. Analyze Responses

Simply collecting NPS scores isn’t enough – you need to understand why customers give the ratings they do. Text analytics helps uncover hidden insights in open-ended feedback.

SurveySensum’s AI-powered text and sentiment analysis capabilities extend far beyond simple categorization. It leverages AI and machine learning to automatically tag and subtag feedback into relevant categories based on analysis of keywords and themes present in the text. Additionally, the AI models can be trained to improve accuracy and customize categorizations. With the help of AI, the system can analyze up to 10,000 open-ended responses in a mere 5 seconds with an impressive 99% accuracy. This rapid and precise analysis allows you to swiftly identify key trends and sentiments without the need for time-consuming and resource-intensive manual effort.

Knowing your NPS isn’t enough – you need to know what’s driving it. SurveySensum’s AI-powered platform analyzes open-ended feedback, highlights key issues, and helps you take the right steps to improve CX.

4. Close the Feedback Loop

Collecting feedback is just the beginning – monitoring and taking action on it is where the money lies. A well-executed closed feedback loop ensures your customer’s concerns are addressed in real-time and it also assures your customers that their voice is heard, establishing trust and loyalty. 

Also, businesses that effectively use customer feedback to improve their services experience a 15% increase in customer retention rates.

So, 

• Acknowledge Feedback: Send an automated response to let customers know their feedback has been received.
• Engage detractors: Leverage the right real-time ticketing system to ensure that negative feedback is flagged, assigned/escalated to the right team, and monitored for progress.
• Leverage promoters: Encourage happy customers to leave reviews or refer others to your brand.
• Implement changes: Use AI-driven insights from feedback to make meaningful product improvements.
• Follow up: Let customers know how their feedback has influenced your actions and track their satisfaction over time.

SurveySensum’s AI-enabled ticketing system automatically flags and alerts your team about detractors. It escalates issues to the right teams so instead of letting complaints sit idle, you can automate and route them directly to the relevant department for swift resolution. This ensures that each issue is followed up on, preventing customers from churning due to unresolved complaints.

5. Track NPS Trends Over Time

Research by the Temkin Group indicates that companies with higher NPS scores, achieved through regular measurement, tend to experience higher revenue growth rates! Now who would want to give that up? Well, some do.

Rather than viewing NPS as an ongoing, dynamic measure of customer sentiment, some companies treat it as a one-time event. They fail to recognize that customer perceptions shift over time and fail to track NPS continuously. 

Failing to track progress and follow up on NPS insights means missing out on understanding the long-term impact of changes. It renders the NPS measurement a mere formality, devoid of its true potential for driving sustained improvement.

Therefore, you need to embrace NPS as an ongoing journey, not a one-stop destination. With SurveySensum, you can track survey results periodically, searching for trends. Regularly sending surveys as it helps in identifying changes in customer behavior or opinions. Also, analyze feedback over time to pinpoint preferences, dislikes, and potential issues.

Wrapping Up!

NPS tracking isn’t just about collecting scores – it’s about understanding customer sentiment and taking action to enhance their experience. By choosing the right survey channels, analyzing responses, and closing the feedback loop, you can turn insights into meaningful improvements. And implementing all of this requires the right tool.

With SurveySensum, you get an automated, AI-powered NPS solution designed to make feedback management seamless and efficient. From collecting customer insights across multiple channels to analyzing trends with AI-driven text analytics, SurveySensum ensures you don’t just track NPS – you act on it in real time.