Net Promoter Score

In an e-commerce business, customer satisfaction is everything since you don’t get the same chance to meet your customers in person as you would with a traditional business model. Surveys and questionnaires are among the best ways to get to know your customers in an online business. The net promoter score (NPS) is one of the main ways to determine the quality of customer experience and increase customer loyalty. We will review what it is, how it works, and the best practices to follow.

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What is the net promoter score?

A net promoter score is a metric that determines customer satisfaction and customer loyalty by gaining customer feedback. It is a simple survey question that asks respondents a single question:

“On a scale of 0 to 10, how likely are you to recommend this product/company to a friend or colleague?”

The NPS system was developed by Fred Reichheld, who worked for Bain & Company, Inc. and is famous for his book The Ultimate Question. The NPS survey can provide a benchmark to understand general customer sentiment. The NPS score can help brands determine new strategies for business growth, customer retention, and gaining new customers. Furthermore, it can often predict future business growth. For example, a higher score may reveal that you are likely to get referrals from your existing customer base who are on the frontline of essential advertising and advocating for your brand in real-time.

How to calculate the net promoter score

Satmetrix systems is an NPS software often used to manage customer experience. The NPS calculation is measured by subtracting the percentage of customers who are detractors from the rate who are promoters. In the NPS system, customers who score 0-6 are considered detractors; they are individuals who are unlikely to recommend your products and probably won’t make a repeat purchase. In the worst case, they may even spread negative messaging about your brand.

On the other hand, Promoters are individuals who give a score of 9 or 10 and are likely to be the most loyal customers who advocate for your brand in their network and on social media. Between those groups are the passives, who give a score of 7-8 are unlikely to promote your brand but will also not hinder it.

What is a good net promoter score?

The score is expressed as a number on a scale from -100 to 100, with a negative score indicating that there are more detractors than promoters. Theoretically, anything above a 0 is good because it means there are more promoters than detractors. A score of 70 or higher is considered exceptional, but no company has ever achieved a score of 100.

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What is a bad net promoter score?

A score below 0 indicates that there are a lot of unhappy customers and potentially a significant amount of negative word-of-mouth. Using the net promoter system, if your company sees a low score, you will need to do some work to improve your customer journey.

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Net promoter score KPI examples & templates

Your net promoter score can be added to multiple different types of reports.

See this KPI in action here!

See this KPI in action here!

Ecommerce report template

A report with all the most important metrics for your ecommerce site, like shopping cart abandonment, click-through rate (CTR), and of course your ecommerce conversion rate.

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Digital marketing report template

From SEO to social media and PPC, this report gives you a good view of all your online marketing strategy metrics and overall conversion rate.

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Google analytics report template

Simply plug your conversion goals (and even your data from Google Ads), and track a specific conversion rate, webpage new customers, conversion tracking, and way more.

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Net promoter score best practices

There are several ways to improve your company’s NPS scores and business success over time within this customer satisfaction methodology.

Ask a follow-up question

The NPS score can tell you a lot about your company, but the one simple question is not enough to give you a complete picture of your business. So while you have the attention and engagement of survey respondents, consider asking more than just the NPS question to get further detail and guidance on how to improve your performance. There are templates available online to guide you in crafting follow-up questions.

Track performance over time

See how your score changes over time along with the company’s revenue growth and company growth. Experiment by adjusting elements of your business, including your customer support and outreach, to try to reduce churn and create a more positive customer experience, tracking what correlates to a positive score change.

Set NPS benchmarks

Your NPS data is only relevant when you have a sense of the touchpoints across your industry. If your score is -10, that may seem bad, but you know where you stand if the industry averages a -30. Set benchmarks and goals proportional to your competitors and see how you can progress from there.

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