Net Promoter Score for eCommerce

Net Promoter Scores are used by the largest and fastest growing companies. But are they useful for all businesses? And are Net Promoter Scores useful for eCommerce businesses? 

The short answer is yes they are useful for most businesses and especially for eCommerce businesses. 

Keep reading to learn why. 

What is Net Promoter Score?

Net Promoter Score, also known as NPS, measures customer experience. It is a core measurement for customer experience in small and large businesses. 

The metric was developed by (and is a registered trademark of) Fred Reichheld, Bain & Company and Satmetrix. Net Promoter Score was introduced in Reichheld’s 2003 Harvard Business Review article, “The One Number You Need to Grow”.

The survey consists of a simple question with an answer running from 0 through 10. The question is typically written as “Would you recommend {company} to a friend?”. The customer selects a number between 0 and 10 with 10 being very likely to recommend to a friend.

The Net Promoter Score question.

Analyzing Net Promoter Scores is easy. Scores are lumped together based on their rating. Scores between 9-10 are Promoters, 7-8 are Passives, and 1-6 are Detractors. 

Promoters (score 9-10)

Promoters are the most loyal and enthusiastic customers. These customers deserve your utmost attention. They are critical to growing your business and capturing useful feedback on your products and services.

Segment these customers in your Customer Relationship Management (CRM) tool to collect feedback on new products and ideas. They are often a great sounding board for your business. Plus, including them in this feedback loop will deepen the connection between your brand and them. 

Passive (score 7-8)

Passives are customers who don’t dislike you but they also do not love you. They would simply move on to another company if you did not exist tomorrow. 

These customers are your biggest opportunity. Reach out to these customers to understand the “why” behind their answers. This information will help you build a campaign to convert these customers to Promoters.

Leverage the feedback you receive from the Promoters to craft marketing campaigns that help convert the Passives into Promoters. 

Detractor (score 0-6)

Detractors are unhappy customers. Be careful with these customers as they can damage your brand. Their feedback is to be taken with a grain of salt. Oftentimes they are not your ideal customer and can cause you to focus on the wrong problems.  

It’s very difficult to win these customers over to Passive or Promoters. However, it’s still useful to ask for the “why” behind their answers. Sometimes you can clear up some confusion that’s driving the score. 

Segment these customers in your CRM and maybe exclude them from some campaigns.

Net Promoter Score calculation

The Net Promoter Score calculation is relatively easy. Simply calculate the percent of promoters minus the percentage of detractors. The Passive scores are left out of the calculation.

Calculate your Net Promoter Score with this simple formula.

Why you need Net Promoter Score for your eCommerce business

Net Promoter Scores help you identify your most valuable customers by their willingness to refer their friends to you. This is useful for running marketing campaigns to capture more reviews and user-generated content

Track the trend of your Net Promoter Scores by customer and persona. Oftentimes the trend is the most useful. Are you moving customers from Passive to Promoters? Is your Detractors group growing?

Your business’s Net Promoter Score can be compared to industry averages to measure how your business stacks up. 

And Net Promoter Score surveys are excellent avenues for asking follow-up questions to drill down into what the customer loves and where you need to improve.

What is a good Net Promoter Score?

Based on a 2018 survey from SPG Consulting, the average Net Promoter Score was 39. 

NetPromoter.com compiled the Net Promoter Scores from the biggest industries. Online shopping is in the middle of the road with an average Net Promoter Score of 39. 

NetPromoter.com shows Net Promoter Scores from the largest industries.

Retently’s 2020 Net Promoter Score benchmark data set has eCommerce at an average NPS of 62.

The true power of Net Promoter Scores is the trend line. Customers should be re-surveyed approximately every 60-90 days. It’s helpful to look at the trend by Promoter vs Passive vs Detractor. It’s also important to trend scores by segment in your business to identify issues you may not be aware of. And don’t forget to trend NPS scores for your biggest customers. 

How to use Net Promoter Score to drive new business

Once you have the scores, you can begin slicing and dicing your customer base to test messaging and grow your business. We’ve included our favorite strategies below. 

1. Segment scores for marketing opportunities

Segment customers based on their Net Promoter Score. Ask Promoters for public reviews if they have not already given them already. Also ask Promoters for referrals; don’t forget to offer a reward for those. Sometimes your Promoters are so excited about your brand that they just want to share it and do not even care about a reward, but it’s a nice perk to offer. 

A useful segmentation could be by customer lifetime value or even average order value. You could compare the customers who spend more money at your store against those who do not to see if your biggest customers are actually your biggest Promoters. Surprisingly it does not always line up. Sometimes your biggest customers are in the Passive camp. Don’t be discouraged; it just means you have some work to do.

Build look-alike audiences of your Promoters as another data point to include in your paid advertising. 

2. Focus on Passives

Dig into why your Passive customers scored you how they did. These customers can be won over and converted to Promoters. Learn what you’re missing in their eyes and work to improve it. Keep in communication with them as you work to win them over.

3. Detractors are decent churn indicators

It’s hard to convert a Detractor to a Passive and even harder to a Promoter. Instead, focus on what’s made them a Detractor by asking “why.”

Sometimes their score is driven by a misunderstanding which you can address. Often these customers are not good for your business. Look at your Detractors as a whole to identify any trends. Use your findings to update your messaging and communication. 

4. Keep your Promoters as Promoters

Send Promoters a swag bag of your products as a thank you. This typically resonates more a couple of weeks after the Net Promoter Score survey. This is another great opportunity to ask them to share about the bag on social media with your hashtag.

5. Start turning your Promoters into a community

Add your Promotersto a private email list where you share new products before they launch and ask for early feedback on ideas. 

Implement Net Promoter Score Surveys with TrustSpot

Setting up a Net Promoter Score survey in TrustSpot is easy. If you have not already, create a free TrustSpot account.

  1. Sign in to TrustSpot and click “Experience Surveys” from the left sidebar
  2. Click “Collector” under Collect Content
  3. Next click “Add Collector”

Now that you’ve created a Collector, you need to name it, add a title, and customize the URL path.

Select “Net Promoter Score” from the list of questions.

Select Net Promoter Score.

Customize the question and make the question required. Don’t forget to click Save.

Add other questions you’d like to ask your customers. 

Customize the survey to match your brand. Set up your TrustSpot account to send Experience Surveys in place of review requests. Or copy the URL from the General tab to add the survey to your website. Another option is to include the survey in your marketing automation campaigns. 

Learn more about setting up a Net Promoter Score Survey in TrustSpot here.

Implement Net Promoter Score Surveys to make better decisions

Start sending Net Promoter Score surveys through TrustSpot today to segment your customers and grow your business. 
Need help setting up your Net Promoter Score survey? Schedule a call with our team and we’d be happy to get you set up.

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