Are your sales numbers dropping and you’re struggling to figure out why? Or are you just looking for new ways to get ahead of the competition? Like an iceberg, 90% of your true performance is invisible and underwater. So how can you better understand how you execute and implement improvements that ultimately drive revenue?
Many successful businesses use the Net Promoter Score (NPS) to quantify customer satisfaction, measure how it evolves over time, and make positive changes based on their findings.
What is Net Promoter Score (NPS)?
NPS is a measure of customer satisfaction that measures how well a company treats its customers and the likelihood of receiving a recommendation from that company.
How is NPS measured?
NPS is based on a scale of 0 to 10. It divides respondents into 3 categories: promoters (9-10), passives (7-8) and detractors (0-6). It is calculated by subtracting the percentage of detractors from the percentage of promoters.
Why is NPS important for online retailers?
To be customer centric, it is important that online sellers track their NPS. Companies with long-term profitability double the NPS score of their competitors on average. This shows a tangible correlation between customer service and company performance.
By adopting this metric, your NPS will organically drive behavior change and encourage you to focus on customer satisfaction and customer loyalty to achieve growth.
Happy customers will return to do business again while recommending your product to friends and family. The goal is to have a high NPS so you can convert your customers into brand advocates and drive growth.
More than just a unit, it’s a way of doing business
There are many variations of the standard NPS question. For example, “On a scale of 0 to 10, how likely are you to recommend us?” These types of numerical questions will give you a great picture of current success.
But online retailers don’t have to limit themselves to just asking one type of question. By following qualitative questions, you will gain a deeper understanding of your ranking. You want to find out what you can improve on, as well as see what your customers find most valuable.
A defined process should be followed when measuring NPS. Discover milestones relevant to your business. For example, when an order is placed or after a shipment is completed.
Once you’ve determined what these important points are, you can start collecting data. Immediately after each of these events, you should send an email request.
eDesk Feedback enables online retailers to automate customer feedback requests, making it easy to get reviews. This will give online sellers the data they require to optimize their process and improve conversions. It will also mean that your data is accurate and reliable.
If you want to be serious about tracking this data, you need to automate the process, then you can use it to your advantage. Having follow-up questions means you’ll be able to clarify whether someone is being abusive, encouraging, or passive.
eDesk provides visual insights into your feedback data to help online sellers spot patterns and make it obvious which areas need improvement. Understanding and anticipating what your customers need will mean a greater chance of them coming back.
What do most companies with high NPS have in common?
- Customer-centric operations. Reliable and easy-to-use services that save customers time and effort improve NPS.
- Exceptional customer service. Providing personalized, quick responses to customer inquiries increases customer satisfaction. A dedicated e-commerce assistant such as eDesk enables online retailers to shorten their customer response times, significantly improving customer service.
- Omni-channel support. Again, prompt customer service across all channels is key. eDesk aggregates inquiries from sales channels, marketplaces and social networks into a single inbox, ensuring no inquiry is overlooked.
- Unique offers. The ability to differentiate yourself from the competition by offering innovative and valuable services to customers will contribute to a high NPS.
- Consistency. Consistently providing a positive customer experience will drive customer loyalty and overall NPS.
- Personalized customer experience. Taking a personalized approach to responding to customers encourages engagement and improves satisfaction.
Create brand advocates
Online retailers should focus on converting their promoters into brand advocates. Clearly laying out the steps for customers to leave reviews and testimonials. These types of reviews carry more weight than paid ads and will lead to additional revenue.
Customer retention rates of 5% increase profits by 25% to 95%, according to research by Frederick Reichheld of Bain & Company.
Start measuring and improving your NPS today
NPS depends on applying a consistent process and surveying a significant sample of customers. As an online marketer, your NPS is one of the most powerful KPIs in your toolkit. While every business is focused on sales, truly successful businesses are focused on happy customers.
Want to improve your NPS, improve customer retention and increase sales? Book a demo to learn more about how eDesk’s eCommerce assistant software can help your online business deliver exceptional customer service. Ready to get started now? Try eDesk free for 14 days, no credit card required.