Transactional Net Promoter Score (tNPS): Definition, Use Cases, and Examples

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    The net promoter score system is a customer satisfaction metric that was established by Bain & Company with one motto. The main aim is to predict company growth by earning the loyalty of your customers. Today NPS score surveys are extensively used in almost every business. In this blog, we will discuss what is the tNPS system, best practices to create a tNPS survey along with examples.

    What Is A Transactional Net Promoter Score? 

    Transactional net promoter score or (tNPS) is a method to measure customer satisfaction following a monetary transaction or interaction with a business. This score is responsible for collecting a customer’s feedback about their experience with a product, service or an interaction (offline or online).. 

    Similar to the general net promoter score survey, this scale has a single question-  how likely are the customers going to recommend the purchase to their friends or family. The scale comes with an open-ended question to explain the reason behind their score.

    A business can use the tNPS survey during some of the most popular touchpoints:

    • After a quick purchase from the ecommerce store.
    • After an assistance call with a support representative. 
    • At a certain touchpoint in the customer journey, in the post purchase era .
    • Assess customer satisfaction during an in-store purchase.

    tNPS score formula

    What is the tNPS Formula? 

    NPS surveys of transactional net promoter score, employee net promoter score and general net promoter score are calculated with the same formula. 

    Percentage of promoters = (Number of Promoters / Total Number of Respondents) × 100
    Percentage of detractors = (Number of Detractors / Total Number of Respondents) × 100

    tNPS = percentage of promoters – percentage of detractors.

    Here is an example of the calculation.
    Suppose you surveyed 100 customers, where 50 customers are promoters and 30 customers are detractors. There are 20 passives in the equation. The calculation will be as follows:
    Percentage of promoters = (50 / 100) × 100 = 50%

    Percentage of detractors = (30 / 100) × 100 = 30%.

    The tNPS = 50% – 30% is 20.

    Three Types Of Respondents In The Net Promoter Score

    1. Promoters (9 or 10): promoters are brand loyal customers. They are happy buyers who recommend the product extensively among their peer groups. There is a huge potential to upsell or cross sell your product in the category.
    1. Passives (7 or 8): passives are indifferent buyers who do not lean on either side of the scale. They might turn to detractors if they have any unmet needs or a poor CX service. However, they can turn to a brand loyal buyer when CX teams assist them to the fullest.
    1. Detractors (6 or below): detractors are unhappy customers who have a high potential of becoming a churned customer. There is also a potential for online reputation damage with a detractor. It is important to cater to them at the earliest to close any feedback loop.

    What is considered a good tNPS score?

    A good net promoter score- be it transactional or relational- depends on the industry and geographical location. However, Bain & Company has listed out general guidelines that we can note.

    1. 0 or below: This indicates that people are extremely unhappy with your product. They might already have switched to the competitor product. At this stage, you might face loss of time, and resources along with risking your market reputation.
    1. 0 to 30: This indicates that the company is starting to work on its customer experience. There is a scope for improvement that people will notice. This might be an acceptable score but brands still need to work extensively to provide customer satisfaction.
    1. 30 to 50: This indicates that people are happy with your CX and product offerings. They are willing to recommend your brand to other people. At this point, you can gather an ample number of positive customer testimonials.
    1. Above 50: This indicates that your brand has set the benchmark in the market. A high score can be extremely challenging in a competitive market. Values of 60 and above are deemed as excellent. 

    What Is The Difference Between Transactional and Relational Net Promoter Score?

    Relational NPS (rNPS or simply NPS), identifies the sentiment of your customers towards your organization. Relational NPS will capture the perception of your brand among customers. The main aim is to capture the overall level of customer loyalty.  

    It is useful to track rNPS periodically, both quarterly and annually, and compare against industry standard benchmarks.

    On the other hand, transactional NPS focuses on how satisfied customers are with a specific transaction-after they buy something or contact your customer support. It gives your teams direct feedback on specific issues. It helps you see how well your team is improving the satisfaction metrics of your customers. This lets you improve each step of the customer journey.

    When Should You Use tNPS Surveys? (With Examples)

    Transactional net promoter score can improve customer experience. You can measure people’s individual satisfaction metrics and take steps to improve any gaps. Here are some important transactional situations where tNPS is important. 

    Product shipment confirmation:

    Transactional net promoter score survey is used to capture post-purchase experiences. While shopping in an ecommerce setting, people can come across pain points during any purchase. When a live tracking number reaches the customer, you can use tNPS survey to capture their whole experience. This data can help brands understand if people might face technical issues or bugs during the checkout process. It can help you find high friction touchpoints at any moment in the purchasing process.

    Support ticket call/ interaction:

    tNPS survey examples

    People raise a support ticket to seek help from the customer service team. The customer satisfaction at the end of the call is determined by how well the team resolves an issue. This can negatively or positively impact the overall satisfaction metrics. After the call concludes, the support team can share a tNPS survey to gauge if the customer has had a favourable resolution. The survey results can bring out any pain points or a gap during the service calls.  It is important to follow-up to determine if the customer could find a reasonable solution after the initial call. A reasonable approach will be as follows- initial call to resolve issues, offer transactional NPS survey to get feedback, offer a second follow up call to determine if the issues has been resolved.

    Product-usage information surveys:

    Free NPS survey

    Customer experience only starts once your product is in the hands of a customer. Launch tNPS survey to understand if the buyer is satisfied with your product. You can do this during the usage period, perhaps after a week or two. This can help you understand if your product works as per expectations. Actual satisfaction metrics are determined by how well your product works for the customer or solves their problem.

    New customer onboarding:

    The customer onboarding process can get overwhelming. The tNPS survey can give you specific insights- does the customer have ample resources? Does the product have every detail listed? Is the checkout process smooth? Is the FAQ section well-equipped with answers?

    Curate your NPS survey to get responses on very specific questions. The main goal is to make the onboarding process seamless (high friction points can deter people from onboarding). 

    In-store experience:

    Free tNPS survey template

    It is not mandatory for a person to make a purchase to become a customer. However, if new patrons walk through the door, ensure that they leave with a positive experience. Set up quick tNPS surveys for walk-in customers. Find out if they would become repeat visitors and how the store can create memorable experiences for them.

    Application and website feedback:

    Free tNPS survey

    Phone applications often have beta testers. A tNPS survey is extremely useful to figure out bugs, technical gaps and glitches. People can share open ended responses along with NPS ratings. Developers can work on the problem areas and make the app or website experience seamless over time.

    Follow-up surveys:

    Customer experience starts mainly after a person has made a purchase. This is to track the long term satisfaction of the buyer with the product. A follow-up tNPS survey can measure the experiences at various moments of truths in the customer’s journey. A follow-up net promoter survey is usually undertaken at different intervals to understand the long-term interactions and experiences of a buyer with the product. For example, products like washing machines or a car will have long-term purchasing implications on the buyer.  

    Why is the Benefit of Transactional Net Promoter Score For Your Business?

    A transactional NPS score is more than just a feedback survey. It is an insight into various metrics that businesses might otherwise overlook. Here are the main reasons for using this survey:

    1. Understand customer expectations and provide memorable CX:
      Customer expectations are at an all time high. The NPS score responses can give marketers an insight on the current issues, usage problems, service issues and how they can create a welcoming experience for every customer.
    2. Detect detractors and possibilities of customer churn:
      The only way to amend problems is to first identify a detractor. This can only be done via a tNPS survey. Detractors might churn sooner if unattended. CX teams can make early amends, intervene at the right time and convert them into happy customers.
    3. Identify technical problem for transactions or usage:
      Mobile applications and websites need constant improvements. A transactional NPS survey can capture details on bugs, technical problems and compatibility issues. Developers constantly need these responses to work on the user interface for a seamless browsing.
    4. Identify customer health scores and monitor revenues:
      Customers are a source of revenue. It is important to monitor their satisfaction metrics at every touchpoint. The net promoter survey can detect detractors or passives immediately. This can give you insights on satisfaction levels, their experiences with your brand and monitor customer retention rates.
    5. Customer support teams can act faster with in-moment responses:
       A transactional NPS survey needs to be in-context with the event. This can bring real time responses for CX teams. It could be during a purchase process, post purchase experience or post service calls. Inmoment customer feedback can help CX teams offer quick resolutions and improvements.

    How To Have A High Transactional Net Promoter Score?

    Here are the best practices to follow when curating a transactional NPS score survey.

      • Give people the chance to express the reason behind the score. Add an open-ended question after the closed-ended question. You will have both qualitative and quantitative responses. 
      • Avoid over-surveying your audience. It is not mandatory to offer a tNPS survey at every single touchpoint. This causes survey fatigue. Find out critical touchpoints with the most customer activity (for example, checkout process, onboarding process etc). This will help you collect meaningful yet genuine responses.
      • Consider using highly interactive survey distribution channels for sending customer feedback forms. Switch to WhatsApp surveys, Facebook messenger surveys, website chatbots and dymanic emails. Your customer can respond on their phone applications without moving to an external browser (an external browser to answer a survey is just another friction point). This will prevent survey abandonment rate
      • Avoid colouring the NPS score metrics (red, yellow, green). This might create a bias in the minds of respondents based on colours. 
      • Follow up with people even if they are promoters. A simple follow up can help you close the feedback loop, maintain high customer retention rates and cross-sell products. 
      •  Keep your survey very specific to the event. A goal oriented survey can help you pinpoint on the exact area that needs immediate improvement. Keep the survey in a simple yet comprehensible language.
    Create a FREE tNPS survey with Merren. No card details needed.

    Conclusion 

    A transactional net promoter score is different from a relational net promoter system. A tNPS survey is used at various transactional intersections. This includes the checkout process, during onboarding, after a service call to name a few.  Customers can provide their ratings along with their experiences. Keep it goal oriented and get a high response rate on your NPS surveys. Create your first tNPS survey with Merren.

    Improve Brand Advocacy with Our Net Promoter Score Survey

    Create a FREE tNPS survey with Merren. No card details needed.

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