Net Promoter Score (NPS)

Many people think that marketing is just a set of sales techniques and their implementation, but in reality, marketing is much more than that.

In just two decades, the development of e-commerce has changed the way we shop, both online and in person. Today's consumers look for information on the internet before they purchase. They look for information on service quality, delivery, and prices. Among the most consulted sources of information, customer reviews are certainly the ones that customers trust the most. Almost 90% of consumers consult reviews before making a purchase.

These reviews let us know whether customers are generally satisfied with the company. Measuring customer satisfaction has become systematic for some companies. However, many companies have never measured customer satisfaction. Yet it is a powerful tool that benefits all parties: customers and company. Today we explain how you should measure customer satisfaction.

Let’s talk about the Net Promoter Score (NPS) :

The NPS is calculated from a specific question concerning the intention to recommend, e.g., "Would you recommend this product or service to your friends?
The answer to the question is given on a scale from 0 (not at all likely) to 10 (very likely).
This question allows you to determine in which NPS segment your customer falls.
In this way, through the Net Promoter Score, Incomaker allows you to evaluate the satisfaction and loyalty of your customers.

It gives you an overview of how attached your customers are to your products, services, or company.

Your satisfied customers are ready to recommend your company to their friends and family. This is what is known as word of mouth.

Definitely, this is a key indicator for your company and the great thing is we are able to install this tool it directly on your e-shop !

But how does it work? Depending on the rating given by the customer, they are classified in one of these three categories:

  • Detractors: if the score is between 0 and 6
  • Passives: if the score is 7 to 8
  • Promoters: if the score goes from 9 to 10

To obtain the NPS, subtract the percentage of detractors from the percentage of promoters. The NPS is not expressed as a percentage but as an absolute number between -100 and +100.

For example: if you have 60% Promoters, 25% Passives, and 15% Detractors, the NPS will be +45. A positive Net Promoter Score (>0) is considered an indication of reasonable customer satisfaction. Thus, you get a score of -100 to +100. With a score of around 50 or above, you are outstanding!
It can be interesting to compare your company with other companies in a similar sector.

But Incomaker goes further than that by notifying you when a customer is going to give you a very low rating so that you can get in touch with the customer and see directly what was wrong with your sales process: a bad experience with the sales team or with your e-shop etc?

This way it is possible to solve the problem directly with the customer, which is a major asset in terms of customer care.

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Friday, March 11, 2022 By Erwan Marec