Diving Into the Customer Loyalty Survey for Business Growth

Diving Into the Customer Loyalty Survey for Business Growth

There is nothing quite as sought after in the business world as customer loyalty. A customer loyalty survey can help businesses achieve this lofty end. 

There is more to customer loyalty than just returning customers, as this concept goes beyond customer retention. Thus, customer loyalty also has its own methods of measurement and attainment. 

This article presents a deep dive into the customer loyalty survey, not simply shedding light on its particulars, but how it can help you grow your business by creating customer loyalty within your target market. 

Defining Customer Loyalty

Before jumping into the customer loyalty survey, let us cover its underlying theme of customer loyalty. This term is used to describe an ongoing business relationship in which customers consistently choose a company’s product/ service over that of its competitors. 

This concept is the driving force behind repeat purchases from customers, even in a competitive market, i.e., one in which competitors offer similar price points, promotions and experiences.

Customer loyalty is not merely customer retention; rather it is the most powerful form of it, as it signifies the segment in your target market that exhibits loyalty to your brand. That means that this group of customers provides more than just a few occasional buys from your business.

Rather, these consumers have a more personal connection to your brand, a tie that keeps them returning to your business on a regular basis. This is established by way of building a promising reputation or having impacted your customers in a considerable fashion. 

This is to say that loyalty takes several factors to build — it cannot be achieved by one good customer experience. That is because the nature of loyalty is ongoing, so while you may have provided one positive experience, it is not guaranteed to retain your customers, let alone build a sense of trust, which breeds loyalty.

Why are Consumers Loyal to a Brand?

From the above section, we can deduce that loyalty comes from a brand’s environment. This environment has to provide multiple points of customer satisfaction

This multi-faceted approach can help build customer loyalty over time. Here are a few concrete reasons as to why consumers are loyal to a brand:

  1. They associate it with positive experiences, such as online experiences, interactions on digital, phone or brick and mortar channels with brand representatives. 
  2. They feel that they are getting something of quality from your brand in particular.
  3. The price ranges, discounts and promotions fit within their budgets and lifestyles.
  4. Customers feel connected to a brand due to its values and associations.
  5. Customers are intrigued by the content a brand provides as an auxiliary, whether it is on social media, websites or video content. 

Why Your Business Needs Customer Loyalty

Your business needs to establish at least some degree of customer loyalty within your existing customers. Loyal customers can help your brand stay afloat even in times of crisis.

In fact, a negative experience can be a covert blessing — if you correct an issue a customer has, it reinforces the positive nature of your brand and customer experience (CX). Thus, it will strengthen your brand’s relationship with customers, paving the way to loyalty. 

Here are the key reasons as to why your business needs customer loyalty:

  1. It represents a steady pool of income as opposed to one-off purchases.
  2. It prevents existing customers from leaving your brand, either by way of website bounces, not completing a site purchase, doing window shopping or turning to competitors.
  3. Customer acquisition is more expensive than customer retention.
  4. A 5% increase in retention may lead to a profit increase of up to 95%.
  5. It is easier to cross-sell and up-sell to existing customers than new ones. (A brand is 60-70% likely to sell to existing customers and only 20% to new customers).
  6. Loyal customers are more likely to recommend your brand, taking on a crucial marketing effort themselves.
  7. Loyal customers tend to spend more on a brand than first-time customers. 

There are several other benefits that conjure up the need to attain customer loyalty. The above lists only a handful of chief reasons.  

How to Measure Customer Loyalty

The most effective way to measure customer loyalty is via the customer loyalty survey, a type of survey specifically designed to gauge the degree of loyalty (or lack thereof) customers harbor for your business. 

The true value of a customer loyalty survey is that it can take up a variety of formats, all while allowing you to ask all the questions you need.

The following list enumerates how to measure customer loyalty. Although some of the following items exist as measurements, they can also be used as surveys themselves. 

  1. Customer Lifetime Value (CVL): The measurement of how much value a customer will add to your company during their lifetime. The longer a customer makes purchases from a business, the greater their CVL becomes.
    1. To calculate: Multiply customer value by the average customer lifespan to get the approximate value you can expect from an average customer during the course of their business relationship with you. 
  2. Repeat Purchase Rate: The percentage of your entire customer base that partakes in repeat business with a company. Also called the repeat customer rate, reorder rate, or customer retention rate, it falls between 0% to 100%.
    1. To calculate: Divide the purchases from repeat customers by all the buys on a site during a given date range.
  3. Net Promoter Score (NPS): This is a type of customer loyalty survey, also useful for measuring customer satisfaction. This score-based survey shows how likely customers are to recommend your brand or offerings. It asks respondents to rate their likelihood of recommending you on a scale of 1-10. (1-6 range = detractors, 7-8 range = passives & 9-10 range = promoters).
    1. To calculate: Subtract the total number of detractors from the total number of promoters to determine how many people are likely to recommend you. ‘
  4. Customer Loyalty Index (CLI): A standardized customer loyalty survey used to monitor customer loyalty over time. It relies on multiple factors like the NPS, upsells, and repeat purchases. 
    1. It achieves this via three core questions: How likely are you to recommend us to your friends and family? How likely are you to buy from us again in the future? How likely are you to try our other products?
    2. To calculate: Find the average of the 3 responses, with each response range being that of 1-6; 1 is a strong yes while 6 is a strong no. 

How to Create a Customer Loyalty Survey

You can create a customer loyalty survey in a number of manners and styles. If you want to use the NPS score, create an NPS survey. If you prefer the Customer Loyalty Index, then use its model in your survey.

But if you are considering creating a general customer loyalty survey, consider the following:

  • Firstly, you should target your customers only.
  • Filter the survey so that only existing customers qualify as respondents by way of your demographics and screening questions.
  • You can hasten the amount of time it takes to reach a certain amount of respondents by sending customers a survey after they made a transaction, that way you’ll know that they are indeed customers. 
  • Then, in the questionnaire section of the survey, add questions that focus on customer loyalty and its subtopics. 

The following gives several examples of the types of questions to incorporate in your customer loyalty survey.

General Customer Loyalty Questions

  1. Do you trust [name of brand] when it comes to [industry needs, specifics]?
  2. Do you consider [brand] to be high-quality?
  3. Which experience has left the best impression on you?
  4. Have you bought from us before, if so how many times? (Add an option for regularly)
  5. How likely would you be to recommend our company to your friends or colleagues?

Customer Loyalty Based on Company Performance Questions

  1. How would you rate your experiences with our [sales rep, customer support rep, etc.]?
  2. Was our [customer support, tech staff] able to help you resolve your problems today? 
  3. How quickly do we answer your concerns?
  4. How would you rate your satisfaction with our products or services on the following scale?
  5. Are you satisfied with the support you received today?

Customer Loyalty Based on Competitor Landscape Questions

  1. How likely would you buy from a competitor if their products(s) were cheaper?
  2. How likely would you switch brands if [competitor] had cheaper products/services?
  3. How would you compare us with this brand? (Leave an open-ended response field)
  4. How would you rate our products/services on a scale of 1-10 in comparison to [competitor]?
  5. What do you believe we offer better than our competitors?

How to Analyze a Customer Loyalty Survey

After you’ve completed your survey research, it’s time to enter the analysis phase. If you want to analyze survey data like a pro, there are several things you should scrutinize.

Firstly, compile the survey data into different forms so that can easily detect patterns and trends. For example, you may want to consider using cross-tabs, charts, tables, graphs and spreadsheets.

The way you choose to lay out your data will depend on your own needs and preferences. 

To delve into the subject of loyalty, start by looking at customer satisfaction questions and surveys. These will help you determine if customers are generally satisfied with your brand or certain aspects of it.

Then, pay attention to questions that relate to your company performance, as these will spell out the need for changes or whether your brand is in good standing. These can also relay opinions on trust.

Following this, look at the general customer loyalty questions; these can give you a broader understanding of how your customers feel about your brand. A high level of positive answers points to customers set on the path towards loyalty.

Finally, assess how your customers rate you in comparison to your competitors. Based on your findings, ask yourself, do your competitors pose a real threat? Will they hamper your customer loyalty? If so, consider the ways in which you can improve your products, services and experiences to gain an edge over them. 

The latter of this is going to be a more ambitious pursuit as it will involve innovating and potentially rebranding. But surveys can help on those fronts as well. 

Investing in Customer Loyalty Surveys

Customers who intend on shopping from you are the lifeblood of your business. This is because, as aforementioned, they will be the last to stop patronizing you, should a PR issue arise. 

As such, investing in customer loyalty sets you on the road to growing your profits and thereby, scaling your business. Loyal customers are not just repeat customers; they are living, breathing marketing conduits for your brand, as they are likely to recommend your brand and write positive online reviews.

In order to invest in customer loyalty, you must invest in the customer loyalty survey. This will help you gather the exact thoughts and opinions of your customers in relation to your brand. It will also allow you to grasp how you stack up against your competitors. 


Diving Into the Net Promoter Score (NPS) Survey

Diving Into the Net Promoter Score (NPS) Survey

The Net Promoter Score (NPS) survey is one of the most prominent customer satisfaction surveys. Based on its eponymous score, this survey measures one of the most critical aspects of customer satisfaction: loyalty.

While brand awareness and product / experience satisfaction are invaluable for any business, loyalty is the only guaranteeing factor that assures your customers will return to your brand for future purchases. As a matter of fact, 43% of customers spend more on a brand that they’re loyal to

Brands should thus keep track of their NPS score, as it is one of the top indicators of customer loyalty. The best way to do so is by running NPS surveys. This article will take a deep dive into this survey type and guide you on several best practices.  

Defining the Net Promoter Score

As its name indicates, the Net Promoter Score survey is a survey based on its titular Net Promoter Score. The score is a key customer satisfaction metric, as it reveals how likely a customer is to recommend a product or company to a friend or colleague

The score is derived by asking just one question, known as the Ultimate Question in relation to the above. The responder answers the question using a scale of 0-10. 0-6 is the low end of the scale, denoting negative sentiment towards the brand and thus a low chance of receiving a customer’s recommendation. 

Conversely, 9-10 is the higher end of the scale, signifying a high chance of customer satisfaction and recommendation of the company. 7-8, although they appear on the higher end, are known to be the mid-range.

This scale is only one aspect of the NPS, as it requires using respondents’ combined answers to find the score in a particular study. Thus, an NPS survey is the vehicle used in obtaining and enriching this score. 

Let’s observe the nuances of the NPS score and how to calculate it.

How to Calculate the NPS and its Numerical Significance

Delving into the specifics of this score, you’ll find that the numbers represent more than just the “not likely” and “extremely likely” points of view. 

On the contrary, the NPS score designates several types of customers based on their answers: the detractors, the passives and the promoters.

It also requires a calculation, as the respondents’ answer itself does not represent the final score. First, you’ll need to know the customer classification in the NPS, which is based on the answers the respondents give. Here is the numerical significance for each answer range:


  • 0-6: The Detractors: The most unlikely group to recommend your company or product.
  • Unlikely to stay on your website for long or make repeat purchases
  • Tend to be naysayers, which means they can intentionally discourage other customers from buying from your brand.
  • Can spread negative opinions about your brand on social media, forums or word of mouth.
  • 7-8: The Passives: The somewhat satisfied group of customers susceptible to buying from your competitors.
      1. Won’t actively recommend your brand, yet aren’t likely to harm it with negative feedback. 
      2. Not used in the NPS calculation.
      3. Close to being promoters (especially if they respond with an 8)
      4. Opportune for brands to study and nurture this group, as they are the easiest to convert to promoters.
  • 9-10: The Promoters: The most loyal customers who make continuous purchases from your brand and refer others to it.
  • Most likely to act as brand ambassadors and augment your brand’s reputation. 
  • Most responsible for a company's growth.
    1. Increase referrals, thereby increasing brand awareness.

You will need to understand these to calculate the Net Promoter Score. Here is how to do so:

  • Subtract the percentage of Detractors from the percentage of Promoters. 
  • For example, if 15% of respondents are Detractors, 20% are Passives and 60% are Promoters, your NPS score would be 60-15 = 45.
  • The NPS= 45, as it is always represented as a digit, not a percentage.
  • A higher NPS score points to a larger amount of promoters, which is most ideal.

The NPS Survey Measures & Correlates with Growth

A Net Promoter Score survey puts the score to greater use by providing it with context. As such, this type of survey does not merely ask the Ultimate Question; it can ask more for a more lucid context. 

This is to say that despite the NPS being the bulk of an NPS survey, it is just that: a part of it but not its entirety. This survey is capable of not only measuring growth but it has proven to correlate with it.

According to Bain & Company, which devised the Net Promoter System, the score can determine growth. Bain conducted a study on the correlation between the NPS and organic growth, measuring this score among business competitors in different industries

Bain concluded that the NPS correlated with 20%-60% of organic growth among these competitors. What’s more is that Net Promoter Score leaders went on to outgrow their competitors by more than twice.

This proves the urgency of tracking one’s NPS and a Net Promoter Score survey helps do just that. This score will enlighten your business on how to improve on several fronts. To understand how you must understand the other questions and facets of an NPS survey.

The Components of an NPS Survey & How they Provide Key Insights 

Aside from asking the Ultimate Question, there are a few other capabilities you can configure to fortify your customer satisfaction measurement. These will provide much more context than a number (the NPS) can alone.

Here are some other ways your business can benefit from a Net Promoter Score survey based on its components.

  1. You can set up the NPS survey to measure virtually anything instead of simply obtaining a general NPS for your brand. You can use it measure:
    1. Products
    2. Interactions with representatives 
    3. UX
    4. Brick and mortar stores & more
  1. If looking for insight into something specific, you can implement the NPS survey in various parts of the customer journey, such as:
    1. The homepage
    2. A landing page
    3. A product page
    4. At checkout
    5. Post checkout/purchase
  2. You can perform market segmentation by using demographics as part of your survey. This will help you create groupings of respondent answers based on their demography. You can thus make educated deductions on how your NPS answers correlate with different demographics.
  3. The added questions. You can use the survey to extract key contextual information that a score alone wouldn’t grant you, such as:
    1. Finding the exact reason behind a respondent's number. For example:
      1. What are the main reasons for the score you gave us?
      2. What makes you feel this way?
    2. Improving customer and user experience. For example:
      1. What can Pollfish do to improve your experience?
      2. How can we improve this product, interaction, etc?
    3. Following up with the respondents to learn more about their concerns on a more granular level. For example:
      1. Can we follow up with you about your responses?
      2. Can we follow up with you to see how we can improve your experience?

Transactional vs Relational NPS Surveys

Now that we’ve established and elucidated the utility and importance of Net Promoter Score surveys, let’s examine the two main types of NPS surveys. 

These surveys are classified as relational and transactional NPS surveys. They are categorized based on both their frequency and purpose of deployment.

  • Relational NPS Surveys:
    • Deployed periodically, such as every quarter, annually or monthly.
    • Designed to keep regular track of customer sentiment, find patterns and detect changes in attitudes toward your brand overall.
    • Provide “health check-ins” on customers as a way to measure success.
  • Transactional NPS Surveys:
    • Distributed after a customer interacted with your company (ex: post purchases or conversation with a representative).
    • Used to understand customer satisfaction in more depth.
    • Based on specific topics.

The success of your brand depends on using both of these types of surveys to fully comprehend your customer loyalty. If you rely on sending out various transactional NPS surveys, then you ought to adjust your relational surveys to a lesser frequency.

If you rarely deploy transactional surveys, you should dispense more frequent relational surveys. To find the correct balance of using both, examine all of your survey feedback. Look for things you find to be missing and once you do, determine which type of survey these concerns best fall under.

Customer Loyalty and Long-Term Business Success

The main insight you can glean from Net Promoter Score surveys is how loyal your costumes are, and of course, how many customers can damage your reputation. 

Through more detailed questions, you can pinpoint the reasons behind your customers’ satisfaction or dissatisfaction with your company as a whole or a particular component. 

This allows you to innovate better, augment your offerings and fix any bugs (whether it’s with an online experience, a salesperson or any other feature). As mentioned above briefly, one of the benefits of this type of survey is its versatility; it can be used to measure satisfaction with just about anything.

The goal is to use the insights you’ve acquired through this survey to gain loyal customers, the kinds who transcend the notion of “customer,” by becoming brand evangelists.

Frequently asked questions

What is the Net Promoter Score (NPS) survey?

The Net Promoter Score (NPS) survey is a type of survey that seeks to understand customer satisfaction by measuring how likely it is that a customer will recommend a product, company, or service to a friend or associate.

How many questions are included in the NPS survey?

The NPS survey typically requires just one question, which asks: “How likely are you to recommend [company, product, or service name] to a friend or colleague?” Researchers can expand on it, so it resembles a full-fledged survey by adding more relevant questions.

How is the Net Promoter Score calculated?

The Net Promoter Score is calculated by subtracting the percentage of Detractors from the percentage of Promoters. Respondents who gave a Passive response are not included in the calculation. The NPS is then described as a number rather than a percentage.

How can the NPS predict growth?

Studies have demonstrated a correlation between a high NPS and organic growth. Those who achieved high Net Promoter Scores tended to outpace their competitors in organic growth.

What types of businesses can benefit from conducting a NPS survey?

All types of businesses can benefit from using an NPS survey. Brick and mortar stores and online shops can benefit equally, as can those selling any type of product or service.