This post examines the difference between relationship and transactional Net Promoter Score (NPS) surveys. Those interested in the research underlying NPS may find it helpful to understand the types of data each type of NPS survey captures. In essence, a firm’s NPS score can be very different depending on whether the NPS survey is about B2B relationships or B2B transactions.
Type 1: Relationship NPS surveys
Relationship surveys are usually what people think of when it comes to surveys in general. Relationship surveys interview a large number of respondents, with a questionnaire covering a range of topics dealing with the relationship between clients and firms in a market. Many firms like to conduct these NPS surveys on a regular basis – whether monthly, quarterly, or annually – to provide tracking data.
For example, Beaton’s annual Beaton Benchmarks survey is a relationship survey.
This type of NPS survey looks at the overall relationship between a firm and its clients. In preparing the questionnaire, we include questions that cover a range of factors and aspects affected by the relationship. We use these to gauge the health of the relationship and the health of a firm’s brand in the market. We also usually track the information so that it can be monitored over time.
Type 2: Transactional NPS surveys
Transactional surveys, on the other hand, usually occur shortly after a transaction (project, engagement or matter) is completed. We conduct these NPS surveys to get a client’s feedback while the transaction is still fresh in their mind. The questionnaire is usually much shorter, consisting often of only 5-10 questions, and focuses on specific aspects of the experience. Each transactional survey often has a small sample size and is associated with that particular transaction (i.e. it is not anonymous as is usual in a relationship survey).
Beaton Debrief is an example of this kind of survey. It provides firms with real-time feedback from clients at the level of projects or matters. We send out Beaton Debrief surveys during or soon after the completion of a single project or matter to the specific client individuals involved. Each matter survey usually only goes to a maximum five or six clients, although there may be more, for example in large engineering projects.
The transactional survey is about measuring clients’ satisfaction with a particular matter. This often revolves around specific aspects of that transaction, for example the documentation, service level, quality or communication. It thus provides very detailed information on the transaction experience. If a client has a bad experience, the firm is more able to address it quickly and understand what went wrong at that point in time. This helps the firm take action to resolve issues promptly and prevent recurrence.
Relationship surveys are strategic while transactional surveys are tactical. Both are needed in your CX toolkit.
Which NPS survey should I use?
The two types of NPS surveys are complementary. Relationship surveys help you understand your overall relationship and brand health, and how your firm compares to other firms at a point in time in the market. You can track these scores to see whether your overall relationship and brand health are improving or not over time. In this sense, the relationship survey informs your strategic thinking, and your overall game plan for your firm.
Relationship surveys are strategic.
On the other hand, the transactional survey are about quality control. It’s a similar idea to how factories use dashboards to monitor their machine production. If one batch of products doesn’t meet specifications, the company will examine what’s happening to find out why, so it can restore the production process to the standard required. But instead of monitoring product specifications, in transactional surveys we monitor aspects related to a project such as quality documentation or effective communication.
If for example, you receive two transactional surveys that rate low for documentation, you can examine those two transaction surveys at that point in time to find our what exactly went wrong with the documentation. In essence, you can respond to a red flag. Transaction surveys provide tactical information to help you detect problems early and work out what exact changes or improvements you need to meet your goals. Equally, when you receive high scores you’ll see a proverbial green flag. In that case you can phone and thank the client for the compliment – and invite them to recommend you.
Transactional surveys are tactical.
Net promoter scores (NPS) based on a relationship survey are not comparable with scores based on a transactional survey. The NPS based on these two types of data can often be quite different. This is because when the respondent is considering the recommendation question that is used in the NPS, they are factoring different aspects into their thinking, depending on the type of survey used.
What does this mean for my firm's NPS?
In a transactional NPS survey, respondents only answer a questionnaire relating to one particular interaction, the matter or project in question.This means the respondent’s thinking automatically narrows by the context when they answer the recommendation question.
Additionally, firms commission transactional surveys. The respondent knows which firm is “sponsoring” the survey, as they will ask questions in relation to a specific matter.
In a relationship NPS survey, the respondent answers the recommendation question relating to their whole experience with the firm. Relationship questionnaires don’t focus on any particular interaction, and don’t reference a particular interaction in the wording of the questions. This forces respondents to take a much broader view when considering how they would rate a firm in the recommendation question. Firms do not sponsor relationship surveys like they do for transactional surveys. Or if they do, the survey does not reveal the sponsoring firm’s identity – in order to seek an unbiased view of the market.
A firm may receive a low NPS based on a transaction survey, while it may receive a higher NPS based on a relationship survey. Or, vice versa. This may be because the firm performed poorly on a particular matter because they were not “responsive”. However, in the more general relationship survey the single matter is just one part of a much larger relationship. The relationship is broader, covering many matters and the overall organisational bond the client has with your firm. If the firm performs well in other matters and interactions, the respondent likely scores the firm highly in a relationship survey.
A positive NPS means you have more clients prepared to say good things about you than those who will spread negative word-of-mouth.
Choosing the right type of NPS survey for your firm
Whether you use data from a transactional or a relationship NPS survey really depends on your research question, as they are both well suited to answering different questions.
The relationship survey is best suited to informing your firm’s strategic thinking and actions. It provides insights into how your firm is performing on key metrics in its market relative to other firms, and helps your firm identify strategic improvements. The transactional survey, on the other hand, provides granular detail on how you are succeeding or falling short in key areas when delivering projects. It enables you to identify specific actions to improve critical shortcomings.
Transactional and relationship surveys are complementary. Their design, conduct and interpretation should be managed accordingly.
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