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What is NPS? and how to measure it?
Net Promoter Score (NPS) is a customer loyalty metric that measures the likelihood of a customer recommending a company’s product or service to others. It is calculated by asking customers a single question: “How likely are you to recommend our company product/service to a friend or colleague?” on a scale of 0 to 10.
Customers who answer with a 9 or 10 are considered promoters, those who answer with a 7 or 8 are considered passives, and those who answer with a 0 to 6 are considered detractors. The NPS score is calculated by subtracting the percentage of detractors from the percentage of promoters.
For example, if 10% of respondents are detractors, 20% are passives, and 70% are promoters, the NPS score would be 70-10 = 60.
A higher NPS score indicates that customers are more likely to recommend a company’s products or services to others. This can lead to increased sales, customer retention, and brand awareness.
Net Promoter Score (NPS) plays outsize influence on the growth of any eCommerce organization. You can NOT grow with marketing. If you want to convert your customers into promoters. Do these two things right.
- Deliver Before Time
- Avoid issues.
Deliver Before Time
Consumers see speedy delivery as a basic need. The longer items take to arrive, bigger will be the NPS drop. If you can NOT keep the promise of superfast delivery, make sure to clearly communicate delivery times to your customers and beat that expectation. And if there are delays, keep the customers in the loop about the status of their item.
Avoid Issues
Consumers who have issues with their orders tend to be detractors of your product. If buyers do NOT face any issues, your NPS scores will be high. When there’s a bad experience, those buyers are NOT coming back for the repeat purchases. Not only these buyers, but also their friends and colleagues are NOT coming back to your site/app.
Top issues for buyers are:
- Items are not as described. Make sure that items are photographed correctly, and they are described accurately. Work with your sellers and constantly reiterate this need to photograph and describe accurately. Use ai (artificial intelligence) to predict which items are not as described.
- Items not received
- return experience. Make the process of returning easy and intuitive.
Increasing, promoters of your brand, has so many benefits. Deliver before time and avoid buyer issues. Sounds simple, but it takes a lifetime of working day in and day out to continuously improve NPS and grow your eCommerce business.