Audit your net promoter score on a quarterly basis

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.

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