Introducing tNPS (Transactional NPS), the transactional version of NPS, the most popular metric for measuring customer experience in recent years. Measure the recommendation score after every customer interaction.
What is NPS®?
NPS, or Net Promoter Score, is a customer loyalty measurement method. NPS (Net Promoter Score), which emerged in the early 2000s, has managed to become the most popular measurement method of the last period.
Net Promoter Score calculates the likelihood of your customers recommending you based on a single question. It gives you a recommendation score between -100 and +100 based on the scores given. Developed by Fred Reichheld, Bain & Company and Satmetrix Systems, NPS was first introduced by Reichheld in 2003 with the article “One Number You Need To Grow” published in Harvard Business Review.
How is NPS calculated?
When calculating NPS, customers are divided into 3 groups according to their scores.
Those who give 0-6 are detractors,
Those who give 7-8 are passive,
Those who give 9-10 are divided into supporters.
In the calculation, the total number of supporters is subtracted from the total number of detractors and the percentage of the total number of responses is calculated.
NPS = (Number of Supporters – Number of Detractors) / (Number of Respondents) x 100
Why is NPS important?
Today, almost all Fortune 500 companies measure NPS. Research shows that there is a strong correlation between NPS and revenue. NPS has become as important a metric for companies as financial indicators.
What is transactional NPS (tNPS)?
Transactional NPS, or tNPS, is a customer loyalty measurement method performed after each transaction. General NPS measurement is done in certain periods (monthly, quarterly, semi-annually, annually).
After customer interactions at customer touchpoints, the evaluation of that transaction is measured with the NPS method. In summary, tNPS is the transactional measurement of customer experience with the NPS method.
What is the difference between NPS and tNPS?
While NPS measures the overall experience periodically, tNPS measures the transaction-based experience. For general NPS, the customer is asked for a recommendation score based on the overall experience, while for tNPS, the customer is asked to score based on the current transaction.
What should the NPS question look like?
In the overall NPS measurement, respondents are asked to score the overall experience.
- How likely are you to recommend us to your acquaintances?
- How likely are you to recommend our brand to your circle?
- Would you recommend us to people you know? Give a score from 0 -10.
- Score 10 for would definitely recommend, 0 for would never recommend.
- How likely are you to recommend this company to a friend or colleague?
- If you were to rate the likelihood of recommending our company to a friend on a scale of 0 to 10, how many points would you give?
What should a tNPS question look like?
The transaction/interaction being measured in the tNPS questionnaire should be clearly stated. The customer should focus on the current experience rather than the overall experience when giving the recommendation score.
Examples of tNPS questions:
- Thinking about your experience in our store today, how likely are you to recommend us to someone you know?
- If you consider the conversation you had with our call center, would you recommend us to someone you know?
- Considering your purchase experience in our online store, how likely are you to recommend our brand to your friends?
- Considering your experience with the product return process, how likely are you to recommend us to your acquaintances?
Collect open-ended responses too
During the NPS measurement, be sure to provide your customers with open-ended response fields where they can write comments. You can also add closed-ended options to your survey based on the scores given.
Which one is preferable?
Both methods have their pros and cons. Measuring tNPS after every customer interaction can overwhelm your customers. Measuring NPS only periodically can blind you to important feedback at touchpoints.
tNPS makes sense to measure your customer experience with the inductive method. You can start with tNPS for instant measurement at touchpoints.
If you aim to measure with the deductive method and focus on your weak points, general NPS measurement will make sense. Apart from that, if you are making instant measurement with different metrics at touchpoints, it would be correct to use general NPS.
Are NPS and tNPS alone enough?
Even though it is the most popular customer experience measurement metric in recent years, there are debates about NPS. It is not possible to say that NPS is a hundred percent accurate method. Various criticisms are made especially for the calculation methodology. The fact that customers scoring 0 and 6 points are considered equivalent in the calculation, while those scoring 7 and 8 do not affect the calculation raises questions.
Instead of using NPS as a single customer experience measurement method, you can position the Likert or CSAT scale as an additional measurement method.
Identify Touch / Interaction Points
Depending on your organisation and industry, you may have several customer interactions. First, decide which touchpoint will provide you with the most value. It can be useful to map the touchpoints. Some potential touchpoints might include the following:
Let’s take the example of retail. One can measure tNPS at the following touchpoints/interactions.
- In-store purchase
- Online purchasing
- Online shopping cart abandonment
- Return process
- Service setup
- Call centre call
- Chat support
- Social media
- Sector events
- Customer meetings
- Direct email
- Billing
- Loyalty program
Select your channels
You can send the NPS question to your customers through different channels. It is possible to measure NPS through channels such as website, IVR, SMS, e-mail, mobile application, kiosk. You should pay attention to the channel you are most in touch with your customers and which generation your customers are representatives of.
Start NPS measurement now
You can easily measure your business NPS, tNPS and eNPS (employee NPS) with Wiseback. Sign up for Wiseback for free, create your form and add the NPS component. Start measuring NPS and managing customer experiences instantly. Contact us to easily manage customer experiences end-to-end with integration, automation and additional development options.
