As an ecommerce company, we are constantly tracking metrics. And while many times the metrics we track may change, one metric does not: NPS.
An acronym for “Net Promoter Score,” NPS gives us a direct window into the happiness and loyalty of our customers. Additionally, there is a plethora of research that suggests that companies with high NPS scores also have high growth rates and produce better, long-term revenue. Score! So it makes sense that at One Click we track NPS. But fool you not, this metric is trickier than it seems. Let’s first start by talking about what NPS is and how we calculate it.
What is NPS?
Once a customer has purchased your product or service, they will be asked, “Would you recommend this to a friend?”, and will be asked to submit a number 0-10. If they answer with a “10” that means the customer would 100% recommend you to a friend. Answering with a “1” is the opposite — more along the lines of, “heck no, I hated everything about my experience!” Customers fall into 3 categories: promoters, passives, and detractors.
These are your best, most loyal customers. To be a promoter, a customer must submit a number within the 9-10 range. The promoters are your cheerleaders, your ring-leaders, and the people that can really fuel growth.
Customers who answer in the 7-8 number range are your passives. Ultimately, they neither hurt nor help your overall NPS score, although these are the people you can try to pull into the promoter group.
These are the customers who answer with a score of 0-6 (yes, they may answer with a 0). They are not fans of your product and/or service, and often voice their opinions loudly.
Calculating the Score
To calculate your overall NPS score, you subtract the percentage of detractors from the percentage of the promoters. So, technically, if you have more detractors than promoters your NPS score could be a negative number. Passive customers are neither added nor subtracted from this number. As an e-commerce company, we set our NPS goals by looking at other e-commerce companies known for their customer service. A good place to start is also by looking at industry averages and benchmarks.
How to Track and Monitor NPS
At One Click, when a customer completes an order we send them an NPS survey via email that asks, “Would you recommend this product to a friend?”, as well as if they would like to share any other feedback. We then funnel the data and feedback into DOMO, a business intelligence software program that creates easy-to-use dashboards to analyze results.
Look for Immediate Responses
Don’t let all this valuable customer data pile up! One of the reasons we love DOMO is because it allows us to monitor information on a day-to-day basis — we never go more than 2 or 3 days without checking our NPS feedback. Through DOMO, we have built a dashboard that shows our customers’ emails and their comments so we know exactly what we need to address. Checking this dashboard consistently allows us to find bugs and fix site problems faster. On top of improving our site, reaching out quickly to a customer who had a poor experience can actually earn their trust back. If we see an unhappy customer, we will send them an email with an issue resolution in an effort to improve their overall happiness, and hopefully restore their faith in our brand. We get a lot of positive feedback from our “detractors” when we offer them our fullest attention, and turn their experience around for the better.
Send Out Weekly Reports
Every week we send out an NPS report to the entire company that not only addresses our NPS scores, but also tracks trends we see among our customers. From our marketing department to our tech team, our customer feedback touches every single department, and this shared report gives department leaders a chance to create action plans for consistent customer issues.
Look for the Trends
After tracking NPS and customer feedback for a couple months, you may start to notice things customers ask for time and time again. I’m talking about overarching trends, not a single one-off comment. If one customer says they would like more more lifestyle pictures on our website, we probably won’t make that project a priority. On the other hand, if customers consistently ask for more lifestyle pictures over the course of a few months, then we know it’s something we should test. Although the negative often shouts the loudest, it’s extremely important to also make note of the positive feedback we collect through NPS feedback. While negative comments can help us quickly resolve issues like major site bugs, focusing on the positive actually gives you equally important information — it paints a picture about who you are as a company and what you are doing well. For example, if there are consistent comments about how easy it is to use your site, you now know that usability and UX is something your team can own and even find ways to make it better.
After you have determined trends in your customer feedback, it’s time to make improvements! Our customers’ comments drive suggestions to different departments, and help us realize internal issues. For example, our merchandising team examines which products receive the worst NPS scores weekly and investigate. This consistent process allows us to quickly remove defective or damaged products from our website to save additional customers from receiving unsatisfactory products.
Finally, monitor the changes you make. This is the only way you will start to increase your NPS score, and ultimately, your customers’ happiness and experience. Listen consistently and make improvements. It’s a constant battle. Find the bugs faster and fix them. Test elements on your site that your customers want. Reevaluate. It’s all about listening and making small steps to improve your customer’s experience. And if you win at this process, they will become your biggest advocates! Angie Stocklin is Co-Founder and COO at One Click.