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NPS is a metric that represents how many consumers are willing to recommend your product or eCommerce store to other people.

What is NPS?

NPS stands for Net Promoter Score. The main thing behind is as a measurement to know how loyal your shoppers are to your product or store.

In fact:

It’s closely related to your product sales & overall growth of the e-commerce store.

NPS is a customer happiness metric that calculates, on a scale of 0-10, the degree to which shoppers would recommend your store to others.

Basically, The metric aims to identify consumers who are less satisfied with the store experience, content, or product, and convert them into business promoters.

Consumers who rate a 9 or 10 are indicated promoters, those who rate a 7 or 8 are considered passive, and anyone who rates a 6 or below is regarded as a critic.

Hope you understand what is actually a Net Promoter Score,

Now, the question is:

How you calculate them, then let's see.

How to Calculate NPS?

NPS counts based on a customer survey. The survey asks only one question to customers: “On a scale from 0 to 10, how likely would you recommend our product/store to other people?”

And then:

Based on the answers, all responses are broken down into three categories:

Promoters: It's a loyal customers who can spread positive reviews of a product or store.

Passive: In this category, the customers are satisfied but probably can be taken by competitors.

Detractors: Unhappy or unsatisfied consumers who can spread negative feedback about a product or store.

With that...

NPS is determined as the difference between promoters and detractors:

NPS = Promoters (%) - Detractors (%)

For eg, If you gathered 100 responses and 65 were promoters and 35 were detractors, then,

NPS = 65% - 35% = 30%.‍

And that's how you can easily measure net promoter score for your eCommerce store.

Importance of NPS

NPS is a simple and easy metric that provides you with much valuable information about your customer’s satisfaction and that definitely helps your store's success.

Store profitability: NPS provides information about your customer's repurchase probability that allows you to estimate your store's potential success rate and profitability.

Reduce unsatisfied rates: NPS can help you to improve customer satisfaction and reduce unsatisfied rates by giving you information to keep your customers happy.

Team performance: NPS also provides you with detailed information about the performance of your team.

Time friendly: NPS survey is Time-friendly and will not take too much time so that consumers can give feedback quickly.

Tracking of progress: NPS is one of the most powerful metrics to track progress over time to know when to resume and restart your actions.

Hope you now clearly know how beneficial is it.

Now, it's time to increase the NPS of the store.

How to Increase NPS?

You already know how significant NPS is for your store, it’s time to look at the ways you can rise on this metric.

1. Follow up with the Detractors

2. Need your team or you to focus on this

3. Quick win with passives first

4. Always improve customers’ experience.

5. Make structural changes day by day and see what works