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Net Promoter Score, or simply NPS, is a method and metric that measures the loyalty of a group of customers in relation to a brand, product or service of any company or a virtual store like yours. To do so, this resource employs a simple survey, with just one question, whose answers demonstrate the degree of customer satisfaction.
It's worth mentioning that NPS was first introduced by American business strategist Frederick Reichheld in the article " The one number you need to grow, " published in 2003 in the Harvard Business Review.
“It took me two years to discover this research that linked responses to actual customer behavior,” he writes, “in fact, in most industries I studied, the percentage of customers excited enough to refer a friend or colleague directly correlated with with differences in growth rates among competitors”, he concludes.
Since then, companies like Netflix, Amazon and Apple have started using NPS. In addition, numerous virtual stores and their partner companies, such as logistics, for example, have also done so. And if you have an e-commerce, I think you should at least think about doing the same. But first, understand a little more about how this feature works.
HOW DOES NET PROMOTER SCORE WORK?
The Net Promoter Score works through a satisfaction survey. This survey has only one question, something more or less like:
- On a scale of 0 to 10, how often would you recommend THIS to a friend or family member?
In the question, replace the word “ISO” with whatever you are trying to measure. It can be, for example, a product, a delivery service, a brand or even the shopping experience in your online store.
Right below the question you insert a box with selectors from 0 to 10. In this way, if the survey is done online, the customer can select a grade within these available grades and then click on the “Send” button. Ready! Simple and painless, isn't it?
How to sort customers according to their answers?
The survey classifies your customers into three types:
- Promoters: are those who give a grade 9 or 10 and, therefore, are satisfied and loyal.
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- Neuters: they give a grade of 7 or 8 and, therefore, are not so faithful. That is, they can buy from the competitor at any time.
- detractors: mark a score from 0 to 6 and, therefore, are not satisfied. These may even use social media or other channels to devalue your brand, service or product.
In any case, each search can cover a period of a day, a week, a month or even a year, for example. You determine as you see fit. The most usual way, however, is to make a monthly accounting, as explained below.
How to calculate NPS?
Let's say that in the month of May, 845 of your customers responded to an NPS survey. That is, they made a purchase on your e-commerce site, and when you requested it, they gave you a satisfaction rating about their shopping experience.
Of these 845 customers:
- 434 they scored 9 or 10;
- 247 marked 7 or 8;
- 164 reported 0 or 6.
Thus, among the respondents:
- 51% are promoters;
- 30% are neutral;
- 19% are detractors.
Now just subtract the percentage of detractors from the promoters, which in our example will result in 32% or simply a +32 on a scale that goes from -100 to +100. Anyway, know what this number represents right away.
Net Promoter Score Scale
As said, the NPS has a scale with a score ranging from -100 to +100, which has four rating zones, they are:
- Zone of Excellence (score ranging from +76 to up to +100)
In this range, your customers are very satisfied and are very loyal.
- Quality Zone (score from +51 to up to +75)
Most of its customers are satisfied, but there is still room for improvement.
- Improvement Zone (score from +1 to up to +50)
Your customers are moderately satisfied. Therefore, they tend to buy with the competitor.
- Critical Zone (score from -100 to up to 0)
Unsatisfied customers. Most buy once and never come back.
As you can see, our example for which we got a +32 score is in the Enhancement Zone. Very cool, isn't it? But how to use it in e-commerce? Keep reading and find out!
HOW TO USE NET PROMOTER SCORE IN THE VIRTUAL STORE?
In e-commerce, the Net Promoter Score should start after the sale. That is, after selling a product on your virtual store and delivering it, you send an NPS form via email, the “My Account” panel of the virtual store itself, or any other means you wish.
So every month you will have several surveys answered by customers. You will extract the score from them and mark it in a spreadsheet. By doing this, you will have a metric with which you can measure the evolution of your score month by month. And, finally, if in the current month the score was +32, how about trying to hit the goal of +35 next month?
Great, now you're very close to achieving optimization for your e-commerce. Create a KPI like "Exceed an NPS of +35 next month". Then list the actions you will take to reach this goal. These actions could involve improving the store's usability, hiring an e-commerce manager, installing a shipping gateway , etc. Got it?
- As soon as you can, also click on “How to do an e-commerce customer satisfaction survey” to read a companion post.
