LoyaltyLion is a free app for Shopify stores . You can use it to calculate NPS and measure the likelihood that customers will recommend you to friends and family.As the name suggests, LoyaltyLion helps you implement a loyalty program to increase customer satisfaction.Calculating NPS is quite simple. Once you have surveyed a certain number of customers – for the example, we’ll imagine that 500 were surveyed – you need to calculate the percentages of detractors and promoters.
Out of 500 customers surveyed:
- 320 answered 9 or 10, i.e. 64% of promoters;
- 150 responded from 0 to 6, i.e. 30% detractors;
- 30 answered 7 or 8, i.e. 6% neutral.
Then, just subtract the percentage of How to calculate promoters and the percentage of detractors to get the Net Promoter Score. Note that we prefer to round the percentages to whole numbers to obtain a “round” score.
With 64% promoters and 30% detractors, the NPS is worth:
- 64 – 30 = 34
How to interpret the NPS?
As often with this type of indicator, it is less difficult to calculate the NPS than to understand its true meaning.
Let’s start with some generalities:
- A positive score (therefore greater than zero) can be considered “good”, insofar as it means that your company has more promoters than detractors;
- An NPS score above 50 is much more significant, however, since it demonstrates that a majority of your customers are “fans” of your brand;
- An even higher Net Promoter Score (approaching 100) is synonymous with exceptional satisfaction, but such a rating is extremely rare.
However, the assessment of a score depends largely on the context of the company. The NPS Benchmarks site, which lists the NPS of thousands of companies, highlights the variation in the average Net Promoter Score from one business sector to another:
If the health sector proudly displays an NPS of 75, the media, telecommunications or entertainment cannot say the same, with scores hovering around 30-40. Thus, it is important to interpret your Net Promoter Score by placing yourself in the context of your sector of activity.
The data above tells us, for example, that a Chile Phone Number List How to calculate score of 40 is fair in the field of financial services, but more worrying in logistics or education. So don’t strive to chase after a very high NPS: scores approaching 100 (like Tesla’s) are exceptions anyway.
How to improve your Net Promoter Score?
NPS alone isn’t always enough to drain How Phone Number MX to calculate you into growth. It needs other elements to fully measure the factors of your business success.Here are 5 tips to improve your Net Promoter Score and better gauge the success of your business!