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  • Writer's pictureLes Elby

The importance of Customer Satisfaction Surveys (Net Promoter Score)

Updated: Jan 5


Customer satisfaction surveys are an essential tool for any business. Businesses can identify areas where they need to improve their products and services by measuring customer satisfaction (the net promoter score - NPS). By collecting customer feedback, companies can better understand what customers are looking for and where they are not satisfied. Executives can then use this information to change how the business operates to improve customer satisfaction and engagement and create repeat business.

In addition, customer satisfaction surveys can help businesses track their Net Promoter Score (NPS). The NPS is a metric that measures how likely customers are to recommend a company to others. A high NPS score indicates that a business provides a good customer experience.

Businesses with a strong NPS score typically have happy customers. As a result, they are more likely to grow and succeed in the long term. Therefore, it is essential for businesses to understand their customers and how to improve their NPS scores.

Net Promoter Score
Net Promoter Score

Net Promoter Score

Executive teams need to understand their customer's level of satisfaction. While other metrics are important, customer satisfaction provides actionable data to allow the business to improve.

At its core, customer satisfaction is critical to monitor because it measures how well a company is doing in keeping its customers happy. If customer satisfaction is low, that's a sign that something needs to be improved within the business's operations, products or services. And if customer satisfaction is high, the company is likely doing something right and should continue down that path.

For example, suppose a survey reveals that customers are unhappy with the quality of a product. In that case, the company can take steps to improve product development and product testing. Furthermore, suppose a significant number of customers report that they are unsatisfied with the price of a product. In that case, businesses may need to reconsider their pricing strategies. In short, customer satisfaction surveys provide a wealth of actionable insights businesses can use to improve the customer experience.

There are several ways to measure customer satisfaction. Still, a Net Promoter Score (NPS) is a handy metric to understand.

What is an NPS Score?

There are many ways to measure customer satisfaction, but one of the most popular metrics is an NPS score.

An NPS score is a metric that measures how likely your customers are to recommend your product or service to others. It stands for Net Promoter Score, and it's a way of measuring customer loyalty and advocacy. A high NPS score means that your customers are highly satisfied with your product or service and are likely to recommend it to others. In contrast, a low NPS score indicates room for improvement.

NPS scores can be calculated using customer survey data. To calculate an NPS score, businesses ask their customers how likely they are to recommend the product or service on a scale from 1-10, with 10 being the highest level of likelihood.

Customers who answer 9 or 10 are considered "promoters," those who answer 7 or 8 are considered "passives," and those who answer 6 or below are considered "detractors."

The percentage of promoters is then subtracted from the percentage of detractors to arrive at the NPS score.

For example, if 60% of respondents are promoters, 20% are passives, and 20% are detractors, then the NPS score would be 40 (60-20).

Customer Satisfaction Surveys Help You Understand Your Customers

In addition to measuring customer loyalty, a customer survey helps business owners and executives better understand their customers. By asking customers open-ended questions about their experience, you can learn what they like and don't like about your company. This feedback can be incredibly valuable in helping you improve your culture and boost customer retention.

For example, let's say you receive a lot of feedback from customers that they're unhappy with your customer service. Business owners can use this feedback to improve their training program for customer service representatives, which will, in turn, improve the quality of customer service and boost customer satisfaction levels.

Customer Satisfaction Surveys Help You Understand Your Culture

It's important to find out what your customers think of your company because their opinions can tell you a lot about the overall health of your company culture. Once you have your survey results, take a close look at the feedback and see if any patterns are emerging. For example, are there specific areas where your customers consistently express dissatisfaction? Could employee engagement and happiness be at the root cause of customer feedback? E.g. poorly trained or overworked employees are often dissatisfied. This is something which customers and respondents may pick up on. If so, these are areas you need to focus on to improve your company culture.

Customer Satisfaction Surveys Drive Continuous Improvement

Finally, satisfaction surveys are essential because they help drive continuous improvement by providing a baseline against which to measure progress. By conducting regular NPS surveys, you can track changes in customer sentiment over time and see how well your efforts to improve your culture are paying off. This feedback loop is essential for driving continuous improvement in any organisation.

What are your competitors doing right?

Finally, customer surveys can also give business owners competitive insight about your products and services and tell you what your competitors are doing right. This information can be just as valuable as knowing what areas need improvement. Suppose there's something that your competition is doing better than you. In that case, it's vital to know to adjust your approach accordingly. After all, the goal is always to provide the best possible experience for your customers.

How Lighthouse Advisory can help.

If you're looking for a reliable way to gauge customer satisfaction and get valuable feedback to help improve your business, look no further than Lighthouse Advisory. We specialise in conducting customer surveys that provide NPS scores and insights so you can make the necessary changes to keep your customers happy.

Our team of experienced professionals will work with you to understand your specific needs and tailor our services accordingly. We pride ourselves on being able to provide actionable intelligence that will help you take your business to the next level. Contact us today to learn more about what we can do for you!


Customer satisfaction surveys are vital for any business that wants to improve its NPS score. By conducting customer surveys regularly and using the data from those surveys to improve your organisation, product or service, you can increase your NPS score and become more successful in the long-run.


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