What is NPS?
Net Promoter Score (aka NPS) is a metric that gauges the loyalty of your customers. It’s closely tied up to your store’s sales & overall growth. By definition, NPS is a customer happiness metric that measures, on a scale of 0-10, the degree to which people would recommend your company to others.
How do you measure NPS for your store?
There are 2 steps to successfully calculate NPS for your store.
Step 1: You need to survey your customers and ask this question, “on a scale of 0 to 10, how likely are you to recommend to a friend?” Once you’ve collected the answers from a statistically significant number of customers, you need to categorize into the following:
- Promoters: Customers who answered with 9 or 10. They would most likely recommend a friend.
- Passives: Customers who answered with 7 or 8. They are neutral. They may or may not recommend your product.
- Detractors: Customers who answered between 0 & 6. They won’t recommend your product to anyone.
Step 2: Once you have categorized the responses, you need to subtract the percentage of promoters from the percentage of detractors. For example, if you collected 100 responses and 75 were promoters and 25 were detractors, then,
NPS = 75% - 25% = 50%.
And that's how you can easily calculate NPS for your online store.
Why is NPS so important?
NPS should be a top priority for ecommerce business owners. If you’re selling custom sneakers, you would want your customers to promote them if they like it. This what NPS tells you. It directly correlates to business growth. When your NPS is high, it indicates that you have a healthy relationship with your customers who are likely to turn into brand advocates who can spread the word on your product (word of mouth).
How to increase your ecommerce store’s NPS?
Now that you know how significant NPS is for your business, it’s time to look at the ways you can get an uplift on this metric.
1. Follow-up with the Detractors
As you read previously, detractors are those who don’t want to recommend your product. It’s vital that you follow-up with a ‘why’. Once you know why they’re reluctant to recommend your products to their friends and family, you’ll be able to fix that. It’s called ‘closing the loop’. You can ask them via email, website pop-ups, or 1:1s.
2. Get your Team’s Vote
NPS is a pesky metric and there are a ton of factors that can alter it. You need your team to focus on this. This means that they understand how to turn detractors into promoters, how to keep the promoters happy and engaged, and how NPS affects their performance review (if needed). Make no mistake, this is a team sport.
3. Don’t Forget the Passives
The passives are satisfied with your service but not enough that they talk about it everywhere. If you’re just starting, you should try reaching out to the passives first. They’re a quick win. For example, you could create a special discount for them if they share your product on social media. Your end goal is to turn the passives into promoters; as many as you can.
Well, that wraps up the case for NPS and why every ecommerce business should focus a decent percentage of their efforts on improving it.
But always, remember that customer service plays a key role when it comes to NPS. If that’s bad, say you reply late or you forgot to respond to queries, it’ll evidently go down. To avoid that, try DelightChat, the customer support tool designed for SME ecommerce brands.