Learn about improving the net promoter score for ecommerce.
Customer experience is the cornerstone of any successful business. It’s not enough to simply have a good product and hope that people will come to you. When it comes to building a thriving business, you need to know what your customers think of your organization.
That is why it’s so important to measure customer experience.
Data is the only way to understand if you are delivering a good experience or not, and Net Promoter Score (NPS) is one of the best ways to measure customer satisfaction. NPS is a simple way to measure customer loyalty and satisfaction with your brand. It helps you understand if you’re delivering a good experience—and gives you the data you need to make improvements.
Net Promoter Score (NPS) is a crucial business metric that provides insight into your customer’s experience and highlights the operational vulnerabilities in your organization. Widely used by brands worldwide, NPS provides an accurate measure of customer satisfaction when used in conjugation with an insight expert.
In this article, we’ll look at how NPS works, how it can be used in practice, and why it’s so valuable for understanding customer experience.
What is NPS in eCommerce?
NPS, or Net Promoter Score, is a well-known metric for measuring customer satisfaction. It’s used by almost every major company in the world, and it’s especially popular in eCommerce.
NPS is a way for businesses to measure customer satisfaction. It’s essentially a way of asking customers: “How likely are you to recommend this product or service?” It’s a great way to measure the quality of customer service you’re providing and how satisfied your customers are with the products they receive.
It’s calculated by subtracting the percentage of customers who are dissatisfied from the percentage of satisfied customers. The formula is pretty simple:
NPS = (Total Promoters – Total Detractors) / Total Respondents.
The higher your NPS score, the more loyal and satisfied your customers are with your brand.
Why is NPS in eCommerce important?
NPS (net promoter score) is a metric that measures customer loyalty, helping businesses gauge how well they’re doing at retaining customers and gaining new ones. It’s one of the most important metrics in eCommerce because it helps you understand your customers’ satisfaction with your product or service and can tell you which areas of your business need improvement.
NPS is a good indicator of customer satisfaction. When customers rate their experience with you on a scale of 0-10, they tell you what they think about your brand and how likely they are to recommend it to others. NPS data can help you identify pain points in your business that need to be addressed so that customers will continue to have positive experiences with your company.
Here are four reasons why it’s important:
- It helps you understand which areas of your business need improvement. It can also help identify issues that you might not have been aware of before.
- It allows you to track progress over time, so you can see how effective your efforts are at improving customer experience and satisfaction over time.
- It helps establish trust with customers by providing data-backed insights into what they like about your business, as well as areas for improvement that need attention from management or product development teams.
- It provides a benchmark for other companies within your industry or field so you can compare yourself against others who are doing similar things in different ways than yours.
You can use NPS to track trends over time and compare against competitors. By seeing how your NPS changes over time, you’ll know if there’s something new or different about your business that could be influencing customer feedback—and if there isn’t any change, then at least you know nothing has changed!
You can also compare NPS scores across different channels like email marketing versus social media and even track trends across different groups like demographics or geography so that you know where the opportunities lie for improvement within those groups as well!
What is a good eCommerce NPS score?
Your NPS score is an important indicator of how well your e-commerce brand is doing. It can tell you whether or not your customers are happy with your service, and it can help you improve your business processes.
NPS is measured on a scale from -100 to 100 and is calculated by subtracting the percentage of unhappy customers from the percentage of happy customers. A good NPS score for e-commerce can be anywhere from 30 to 70.
An NPS score below zero means that you have serious issues to address. You need to find out what’s wrong, and fix it as soon as possible. If you let things go too long without addressing the problem, it will only get worse.
A score between 0 and 30 is a comfortable range—but there is room for improvement! You should always try to increase this number or at least keep it steady. The average NPS score for e-commerce brands is said to be 34.
Getting an NPS score above 30 means that your e-commerce brand has a good ratio of happy customers to unhappy ones. But if your score is over 70, then congratulations—your brand is doing a great job!
How to improve your eCommerce NPS/ tips for eCommerce NPS
1. Follow-Up with Your Customers
This is one of the most important steps in increasing your NPS because it allows you to learn about what your customers think about their experience with your product or service. If a customer leaves feedback, you can follow up with them and ask them why they left that feedback. This will provide you with valuable information that helps you make improvements to your business.
Also read: Learn more about customer lifecycle marketing
2. Involve All the Departments
If you want to improve your NPS, it’s important that everyone works together on this project instead of just one department handling everything themselves. This will help ensure that everyone involved understands what needs to be done and how it fits into the overall picture of improving your eCommerce NPS score over time!
3. Focus on the Detractors
If you want to improve your product or service, you need to focus on your detractors.
These are the customers who are unhappy with your product or service. They could be annoyed by a feature you added, or they may not like how their shopping experience is handled. In fact, these folks are actually more likely to give you feedback than your promoters!
You can use this information to improve your product by asking them why they were disappointed and then implementing their suggestions. This will improve customer satisfaction and sales metrics such as conversion rates and average order value (AOV).
4. Leverage Your Promoters
Promoters are your most valuable customers. They’re the ones who will sing your praises to everyone they know and tell you that they love your brand. What’s more, they’re also the ones with the most influence over their peers—so what they say matters even more.
How do you get these people to talk about you? One way is to make it easy for them to do so. If you send an email asking for feedback, be sure not to send it out in a mass email blast: personalize it! And if possible, include an incentive for them to share their experience with others—a coupon code or some other offer will go a long way towards getting them talking about how much they love your brand on social media or with friends.
5. Conduct a root cause analysis
Conducting a root cause analysis can help your organization identify the five most common problems faced by customers, and it can also provide insight into why these problems are occurring. This information can be used to develop solutions that will improve customer satisfaction.
Conduct a Root Cause Analysis of your company’s Net Promoter Score (NPS) results so you can identify areas for improvement and make changes that will have the biggest impact on your business performance overall; these could include anything from website design changes to pricing changes based on customer feedback received through surveys or other forms of communication like social media channels.
The best way to start this process is by conducting an analysis of your data—take all of your feedback from detractors, passives, and promoters and categorize it according to common themes or issues. For example: If several customers mention that they had trouble finding what they were looking for on your website, you may want to consider adding some sort of search tool so customers can easily find what they are looking for without having to browse through every single product category individually.
6. Train Your Staff
When it comes to improving your e-commerce NPS, there’s one thing you can do that will have a more immediate and powerful effect than any other: train your staff.
Your employees are the first point of contact for your customers, so they need to be able to offer the best experience possible. But what if they don’t even know how to do that?
If you want your customers to leave glowing reviews and return again and again, then you need to train your staff in customer service. That way, they’ll know exactly how to respond when customers ask questions or make complaints—and how to handle it when things don’t go as planned.
7. Monitor your NPS score routinely
Monitoring your NPS score is a great way to keep an eye on how your eCommerce business is doing. You can use it to track how well you’re meeting customer needs, and see where you need to make improvements.
But if you’re not monitoring the score, how will you know when your company is doing well? There are a few ways that you can do this:
- Use an automated system that will send you alerts when your NPS score drops below a certain level. These alerts will let you know if something needs attention, so that you can get it taken care of quickly.
- Create a dashboard where all of your important metrics are displayed throughout the day – including the NPS score! This way, if anything changes in real time, it’s right there in front of your face so that no one has to waste time looking at old data or trying to remember what happened last week (or even yesterday).
8. Offer incentives
If you want to improve your eCommerce NPS, there’s one thing you need to do: offer incentives. This could be store credits for the next purchase or for the valuable insights. Learn more about store credits here.
When customers feel like they’re getting something valuable from your brand, they’re much more likely to be positive about it. So if you can make the experience of interacting with your brand rewarding for them—by giving them store credits on purchases, interactions, feedback, etc.—you’ll see an increase in their NPS score.
Also read: Ways to boost customer engagement on store credits
NPS is a key metric that can make or break a business. The first step to a good NPS is actually offering a seamless shopping experience. That’s why Amazon is so popular and has such high NPS scores: It offers customers a one-stop shop for all their needs.
To ensure you’re on track with your own customer experience, make sure you’re offering them an account page where they can manage their orders, find out about promotions and discounts, and get in touch with you if they have any problems with their orders.
Get in touch with Flits to know more about how to build a customer account page that can help your business grow. Flits is the leading provider of customer account pages for Shopify businesses, so we can help you build a page that makes your customers feel seen, heard, and valued.