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If you missed Day 10 and 11, you’ll have to read the post from yesterday which was about customer metrics and it included NPS and CLV.

Today let’s dive a little deeper on NPS – or net promoter score (NPS).

As a truly customer-centric organization, auditing your NPS at least every six months will provide powerful insights on how your company is performing.

The NPS is a simple metric that is concerned with one thing: gauging customer loyalty.

In order to calculate NPS, you have to launch a survey to get answers – like this one: “how likely is it that you will recommend (this brand) to a friend?”

Calculating NPS starts with identifying three types of groups: Promoters, Passives, and Detractors.

Using the 0-10 point rating scale to measure the NPS, you can calculate your score and segment your customers into the three groups.

1️.The promoters: (9-10 score) The promoters are very satisfied and loyal customers that will recommend your site to others.

2️.The passives: (7-8 score) The passives are satisfied customers but not very enthusiastic about their experience.

3️.The detractors: (0-6 score) The detractors are unhappy customers that will not recommend your site to others.

Here’s my 5 (five) measure & improve tips:

✔️ Adopt a regular survey audit schedule. NPS is a long term measure of customer loyalty. Consider picking one or two dates a year to collect NPS scores and stick with that schedule. Halfway through the year would be in June and December would be the year end.

✔️ How often should you send NPS surveys? The best time is after they’ve had a meaningful interaction with your brand. That can be within the first two weeks or a month.

✔️ How is ecommerce NPS calculated? Use this formula: NPS= % Promoters – % Detractors. The NPS can be negative or positive. -100 being the lowest NPS score and +100 being the highest. If you have negative score, it means the detractors outnumbered the promoters of your brand.

✔️ What is a good NPS score for ecommerce? Getting a score higher than 30 means your ecommerce company has a healthy ratio of happy customers to unhappy ones. For example – Shopify has Net Promoter Score of 41 with 61% promoters, 19% passives and 20% detractors.

✔️ Develop strategy on how to treat and respond to each group, especially the detractors and passives.

When you embrace a customer centric culture that continuously measures and monitors customer feedback, your customer satisfaction levels and customer experience levels increases.