What is the difference between Transactional and Relational NPS® survey?

Relationship NPS
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Divya Kandwal
September 25, 2019
mins read

Net Promoter Score® or NPS® is an accurate measure of Customer Loyalty and future growth. However, one of the greatest strengths of NPS® is its versatility. In addition, to being exceeding simple, it is also highly adaptable. Thus, a well implemented NPS® program provides companies with the ability to capture comprehensive customer feedback, at all touchpoints.

A question that NUMR usually gets is,

Is it better to conduct NPS® surveys regularly or only after a major transaction?

However, the answer differs for different companies, based on the leading concern and requirements.

What is the difference between Transactional and Relationship NPS®?

Generally, companies can utilise and implement Net Promoter Score® in a variety of ways.

However, there are two major types of Net Promoter Score®, depending on the time and method of survey.

1. Transactional NPS®

In brief, Transactional NPS® is the survey done immediately after a customer’s interacts with a company. Mainly, it is done after customers have purchased a product, used a service to check if they are satisfied. The the aim of transactional NPS® is to obtain feedback at a granular level about a particular touchpoint.  However, transactional is a real-time measurement that DOES NOT relate to financial metrics.

Hence, Transactional NPS® helps companies understand the quality of a particular interaction.

2. Relationship NPS®

Overall, the aim of a Relationship NPS® is to discern a company’s relationship with its customers. Also, it gives a company an idea of how the customers generally feel about it. Therefore, it is done regularly (monthly, quarterly) to measure customer loyalty and brand health. Additionally, it provides a number to benchmark your company against industry standards.

The main reason for doing Relationship NPS® is that it relates strongly with Financials. Therefore, it is used for creating the predictive model.

Net Promoter Score® transactional relational

Which one should your company be doing?

Usually, a combination of Transactional and Relationship NPS® is most conducive to obtaining actionable customer insights.

NUMR uses NPS® to help companies predict their Financials. We do this by running a regression model that links Relationship NPS to Transactional. Consequently, this tells which factor/area has the most impact on the overall NPS®.

Numr Research, a market research company believes that the end goal of a NPS program must be predicting Financials. Moreover, a company should know what impact a 5% increase in their NPS has on their bottom line.

*Net promoter Score® and NPS® are registered trademarks of Bain & Company, Satmetrix and Fred Reichheld

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