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Why Use NPS: A Guide for Business Growth

Seth Godin once said that customers don’t just buy products or services—they buy relationships, stories, and magic. And if you think about it, that’s precisely what makes understanding your customers so important. 

But if you’re like most business owners, you’ve probably wondered: Why aren’t customers returning? Why aren’t customers recommending us? What needs fixing to make the biggest difference? In fact, research reveals that over 62% of businesses struggle to measure the ROI of their CX efforts.

These questions can be pretty challenging to answer, but ignoring them means missing out on chances to grow. That’s where Net Promoter Score (NPS) comes in handy. But just measuring it isn’t enough. To really see results, you need to act on the feedback—spot trends, fix issues, and make changes that matter to your customers. In this guide, I’ll tell you why use NPS and how it can help you achieve sustainable growth.

What Is NPS & Why Is It More Than Just a Number?

NPS is an effective tool that helps businesses grow and strengthen customer relationships. It asks one straightforward question: “How likely are you to recommend our service/product to a friend or colleague on a scale of 0–10?”

But here’s the thing—NPS is more than a metric. It’s a window into how your customers really feel about your business. 

Here’s what it can tell you:

  • What you’re doing well: A high NPS means your customers are happy, and you’re building a loyal base.
  • Where you need to step up: Low scores highlight areas that need attention, such as product quality or customer support.
  • How to grow: By acting on customer feedback, you can create experiences that turn more people into loyal fans who spread the word about your brand.

NPS also groups customers into three categories: 

Promoters who love your brand and recommend it; 

Passives who are neutral but not thrilled; 

And Detractors who are unhappy and might discourage others from choosing you. This clarity makes NPS so valuable—it helps you focus your efforts where they matter most.

Why Use NPS?

Okay, so you know NPS measures how likely your customers are to recommend you, but why use NPS? Here’s the deal why is NPS important:

  • Prioritize the Customer Experience: NPS isn’t just about collecting numbers; it’s about creating a mindset where listening to your customers becomes second nature. It pushes you to put their needs front and center and make decisions grounded in their feedback.
  • See How You Measure Up: It gives you a chance to compare your performance to industry benchmarks. It’s like a report card for your business—helping you spot where you’re doing well and where there’s room to outshine competitors.
  • Spot Hidden Problems: Customer feedback through NPS can dig out issues you didn’t even know existed. Maybe your checkout process is confusing, or your support team takes too long to respond. These insights help you fix what’s broken before it becomes a bigger problem.
  • Boost Employee Engagement: When employees see that customer feedback actually drives change, it gives them a sense of purpose. It can motivate your team to work together on improving the customer experience, making it a shared goal everyone can rally around.
  • Increase Customer Lifetime Value: Happy, loyal customers stick around longer, spend more, and recommend you to others. By focusing on loyalty and satisfaction through NPS, you’re not just building better relationships—you’re also increasing customer lifetime value.

Real-Life Use Cases of Companies Winning With NPS

Every company has its own way of using NPS to hit its goals and create better customer experiences. Here are some net promoter score examples of how different businesses in various sectors are leveraging it for success:

Slack

Slack, the workplace communication tool known for its incredible growth, uses NPS as a cornerstone of its product development strategy. For Slack, the goal isn’t just to create features—it’s to generate features that users actually want.

A great example is threaded replies. This much-loved feature organizes conversations neatly and comes directly from user feedback highlighted through NPS. Bill Macaitis, Slack’s former CMO, has shared that NPS is not just a metric—it’s a driver of growth, lowering customer acquisition costs while boosting retention and advocacy.

Canva 

Canva, the graphic design platform used by millions, takes a proactive approach to reducing churn with the help of NPS. When users give low scores, Canva doesn’t let it slide. Instead, their team reaches out with personalized support or special offers to address concerns directly.

This method helps Canva build trust and loyalty, showing users they care. By catching and solving problems early, Canva not only reduces churn but also increases customer lifetime value, proving that NPS can be a powerful tool for keeping customers around for the long haul.

ProProfs

ProProfs Quiz Maker, a pioneer in cloud-based quiz creation tools, saw firsthand how updating their feedback process could transform customer satisfaction. For years, they relied on bi-annual email surveys to gather customer insights—but this method had apparent limitations, from low response rates to delayed results.

By integrating Qualaroo’s NPS tools into their workflow, ProProfs saw a 20% boost in response rates and a dramatic increase in their NPS score—from 18 to 50. Real-time feedback allowed them to spot issues quickly and act on them before they escalated, leading to stronger relationships with their users.

Read the full case study here.

The Cleveland Clinic

The Cleveland Clinic, known for putting patients first, uses NPS to improve healthcare experiences. They collect feedback on wait times, doctor interactions, and overall satisfaction to understand what’s working and what needs fixing.

For instance, if patients mention long waits as a problem, the clinic can adjust schedules or improve check-in processes to make things run smoother. If feedback shows patients feel rushed during appointments, they can train staff to communicate more effectively and ensure everyone feels cared for.

Airbnb

Airbnb relies heavily on NPS to ensure every guest experience meets expectations. Their approach goes beyond just tracking scores—they use the feedback to act in real time. If a guest flags an issue, like a broken appliance or a cleanliness problem, Airbnb’s system quickly identifies the concern and notifies the host to address it immediately. This proactive process helps prevent minor inconveniences from escalating into major frustrations.

For example, if a guest reports dissatisfaction with their check-in experience, Airbnb ensures the host is contacted swiftly to resolve the issue, whether providing clearer instructions or arranging a new check-in method. These quick responses don’t just fix problems—they show guests that their concerns are taken seriously, reinforcing trust and reliability.

Capital One

Capital One uses NPS to make its digital banking services more user-friendly and efficient. By collecting feedback, they identify pain points like navigation issues or complex features. This input has led to a simplified online banking interface and an improved mobile app experience.

These updates ensure customers can easily manage their finances, whether transferring money, paying bills, or checking account details, all while reinforcing trust and loyalty in a competitive market.

Belron

Among the world’s leading automobile windshield repair companies, Belron stands out for its commitment to user satisfaction. They don’t just collect NPS scores—they go a step further by integrating sentiment analysis into their feedback process. 

By closely analyzing customer sentiments using Qualaroo, Belron pinpoints areas for improvement and ensures every touchpoint meets customer expectations. This proactive approach has helped them maintain an impressively high NPS score and continuously deliver an exceptional user experience.

Why Your NPS Might Be Stuck & How to Turn It Around

You’ve been diligently gathering NPS data, yet the score won’t budge. Sound familiar? Don’t worry—you’re not the only one. Many businesses hit this plateau, but the good news is that there are clear reasons why it happens and even clearer solutions to fix it.

  • You’re Not Taking Action on the Feedback

Collecting NPS data is a great start, but real progress happens when you act on what your customers tell you. If their feedback isn’t driving change, your score will stay where it is.

The Fix:

  • Follow up with your customers. Thank Promoters for their loyalty, address Detractors’ concerns, and dig deeper with Passives to understand how to win them over.
  • Identify recurring issues in your feedback—whether about your product, service, or website—and fix those first. 
  • Regularly track your NPS over time to see which changes are working and adjust your strategy if needed.
  • You’re Not Asking the Right Questions

The standard “How likely are you to recommend us?” is useful but doesn’t tell the whole story. If you don’t dig deeper, you’ll miss valuable insights. 

The Fix:

  • Add open-ended questions to your survey. Ask customers why they gave their scores—it’ll give you the context you need. Here are some examples of NPS Questions.
  • Break down your audience by demographics or behavior. For example, first-time buyers and long-term customers may have very different experiences.
  • Talk to your customers through interviews or focus groups to better understand their needs and frustrations.
  • You’re Not Measuring Consistently

Inconsistent tracking makes it hard to spot trends or improvements. If you don’t collect NPS data regularly, you won’t get the full picture of how your customers feel over time.

The Fix:

  • Decide on a consistent cadence—monthly, quarterly, or whatever works best for your business—and stick to it.
  • Use the same questions and methods every time to ensure your results are comparable.
  • Ensure you hear from a good mix of customers, not just the loudest ones.
  • You’re Not Sharing What You’re Doing

Even if you’re making big improvements, customers might not know about them. Without visibility into your efforts, they may assume nothing has changed.

The Fix:

  • Share updates about how you’re using their feedback—whether it’s on your blog, social media, or through email newsletters.
  • Highlight specific improvements you’ve made based on customer input, like a better checkout experience or faster customer service response times.
  • If there’s still work to do, say so. Customers appreciate transparency and knowing you’re committed to getting better.

How to Turn Detractors Into Your Biggest Fans

Detractors, those customers who give you low NPS scores, might seem like a lost cause. Bain & Company reports that over 80% of negative word of mouth comes from NPS detractors, which can harm your growth. But with the right approach, you can turn them into your biggest fans. 

Here’s how:

1. Listen and Understand

When a customer isn’t happy, it can sting—but their feedback is incredibly valuable. Instead of brushing it off, take a moment to really listen and understand what went wrong. Ask open-ended questions like, “What could we have done better?” or “What would have made your experience more positive?” Tools like Qualaroo can help you dig deeper with targeted surveys designed to uncover the root of the issue.

2. Respond Quickly and With Empathy

When someone takes the time to share their frustration, the worst thing you can do is delay your response. A quick, empathetic reply shows you care. Acknowledge their frustration, apologize sincerely, and assure them you take their concerns seriously. Qualaroo’s CRM integrations make it easy to streamline this process and ensure no feedback goes unanswered.

3. Take Real Action

An apology is great, but it’s not enough if the problem isn’t resolved. Go beyond words and take concrete steps to fix the issue. Maybe that means offering a refund, replacing a faulty product, or tweaking your process to prevent similar issues. Customers will appreciate seeing real effort put into making things right.

4. Follow Up and Show You Care

Once you’ve addressed the problem, don’t just stop there. Follow up to check if the customer is satisfied with the solution. This extra step shows that you’re genuinely invested in their experience. With Qualaroo’s automated survey tools, you can easily send follow-up surveys to ensure your customers feel heard and valued.

5. Go the Extra Mile

Sometimes, fixing the issue isn’t enough to win back trust. A little extra effort can go a long way. Offer a small gesture, like a discount code or a complimentary gift, to thank them for their feedback and show you’re committed to doing better. Often, these thoughtful touches turn a frustrated customer into a loyal one.

6. Use Feedback to Improve

Detractors might point out areas you’ve overlooked, and their feedback can help you improve your product, service, or overall customer experience. Don’t just patch the problem—use their insights to make lasting improvements. 

Qualaroo helps you measure customer satisfaction and act on it. With features designed to listen, learn, and act, Qualaroo’s NPS software is essential for businesses that want to go beyond the numbers and create lasting customer loyalty.

NPS Isn’t Just a Score; It’s Your Growth GPS

At its core, NPS is more than just a metric—it’s a direct line to your customers’ thoughts and feelings. When you use it effectively, you’re not just improving your score—you’re creating better experiences, solving real problems, and building stronger relationships with your customers.

With tools like Qualaroo, collecting and acting on feedback becomes seamless. You can pinpoint areas for improvement, celebrate what’s working, and continuously refine your approach to meeting customer needs.

Remember, growth happens when you listen, act, and show your customers they matter. NPS gives you the insights to do just that—turning feedback into real progress.

FAQ

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To calculate NPS, categorize responses into Promoters (9-10: loyal customers), Passives (7-8: satisfied but not enthusiastic), and Detractors (0-6: unhappy customers). Then, calculate the percentage of Promoters and Detractors: 

  • Promoters % = (Number of Promoters / Total Responses) × 100
  • Detractors % = (Number of Detractors / Total Responses) × 100

Finally, subtract the percentage of Detractors from Promoters: 

NPS Calculator = Percentage of Promoters - Percentage of Detractors

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About the author

Dwayne Charrington is an expert writer in customer feedback management, UX design, and user research. He helps businesses understand user intent and enhance the customer experience. Dwayne covers feedback management, lead generation, survey accessibility, and the impact of AI and VR on user interaction. He shares insights on creating effective surveys, improving navigation, and using A/B testing for smarter decisions. Additionally, he focuses on optimizing mobile experiences and champions privacy-by-design, ensuring users feel satisfied, secure, and valued.