What is Net Promoter Score ?
Net promoter score is an index or metric ranging from -100 to 100 on the basis of customers choice and experience with the product or service which measure the inclination of customers to recommend a brand and its products over other products available in the market. It shows the brand value according to their customers. It depends on the reliability, loyalty and satisfaction shown by the customers. Customers are asked for 0-10 ratings, that how they are likely to recommend your brand to others to their friends and family.
How Net Promoter Score is Calculated?
Customers are asked to give ratings to a brand on the basis of their experience after using the product, that how they are likely to recommend your brand to others to their friends and family. Based on their opinion and ratings, they are divided into 3 categories like Promoters, passives and detractors.
Detractors– Detractors are those who give ratings to the brand up-to 6. They are particularly dissatisfied with the product and service. Detractors will never recommend the brand to anyone. In future, they could damage the reputation of that brand too. They can probably spread bad or negative word-of-mouth.
Passives-they are those who give either 7 or 8 ratings, which means neither they are neither very much happy with the product nor very much dissatisfied. It’s for sure that they will not spread any bad word-of-mouth but they are easily approachable for other brands. They can easily move to other brands if get a better opportunity.
Promoters-Promoters are the reliable and loyal customers who give 9 or 10 rating to your brand. These are the people who will always spread good word-of-mouth and love your brand’s product or service. Promoters are those who keep on coming to you and they are your brand’s real promoters. Potential buyers are easily influenced by promoter’s ratings and their reviews.
Once all the customers are classified in their respective lists, you can use the percents of detractors and promoters and find your Net Promoter Score.
Formulation of NPS :
Net Promoter Score = (% Promoters – % Detractors) * 100
How to determine if an NPS is good or bad?
If an NPS is 30 then it’s fair if it is up to 50 or above, it’s great and it’s over 70 then it’s Excellent. Every industry is unique and it’s it may have different best NPS or Least NPS. So before fixing your best, Check the industry’s best.
Why NPS is important for Businesses?
NPS is customer’s satisfaction metric which decides whether customer like your brand and products or not. It helps you to find out whether your customers recommend your brand to others or not. NPS can be used to optimise your consumer engagement plans. You can use customer’s buy history to decide the reliability of your customer base. To know more about customer’s experience insight’s customer’s achievement stage which can enhance your Net Promoter Score.
- Measure, assess and assemble client reliability- NPS is a superior method to quantify client reliability. The framework perceives that estimating consumer loyalty isn’t sufficient, organizations must see how steadfast their clients are so as to better measure how happy they are.
This gives you responsibility, you may check what you are doing is giving positive or negative impact on customer experience.
- Rise in Customer’s satisfaction level- Most organizations need clients to be happy; the test is the manner by which to recognize what clients truly consider you. NPS gives you the measurements to better viably gauge consumer loyalty, with the goal that you can take a shot at approaches to build it.
- Boost revenue growth and increase customer reliability value- NPS gives you a chance to centre around making more promoters inside your business. Promoters are intense; here are a few certainties from Bain and Company regarding why promoters drive income development.
Promoters are less price touchy, they’re not continually searching for ‘the best deal’.
Promoters normally cost less with regards to an offering, showcasing and publicizing. They likewise have greater normal request sizes.
Promoters increment spend more than detractors, they are occupied with new offerings and utilizing one provider.
Flipkart is India’s largest e-commerce marketplace with a registered customer base of over 100 million. In an interview in May 2016, Flipkart co-founder and then-CEO Binny Bansal had indicated that net promoter score had become the firm’s most important metric.NPS of Flipkart is 70.
Reputation score of Flipkart is 65/100, provided by rankmeonline.
Jabong.com is an Indian fashion and lifestyle e-commerce portal founded by Praveen Sinha, Lakshmi Potluri, Arun Chandra Mohan. The portal sells apparel, footwear, fashion accessories, beauty products, fragrances, home accessories and other fashion and lifestyle products. The company’s headquarter is in Gurgaon, NCR.NPS of jabong is 73 and company says they keep on checking their NPS score.
Reputation score of jabong is 41/100, provided by rankmeonline.
Swiggy is a food ordering and Delivery Company based out of Bangalore, India. Swiggy was inspired by the thought of providing a complete food ordering and delivery solution from the best neighbourhood restaurants to the urban foodie.NPS Score of Swiggy is 48 which is very low according to the industry average.
Reputation score of swiggy is 57/100, provided by rankmeonline.
LimeRoad.com’s innovative scrapbook application allows people to select from a range of gorgeous products, create a unique look and share it with their friends. Taking community generated content several notches higher, LimeRoad.com is arming everyone around the country to not only become a stylish but also to sell their curated looks and earn.
Reputation score of Limeroad is 49/100, provided by rankmeonline.
Reputation score is important to know its brand value online. Businesses are trying to get their reputation score too so that they can qualify their brand. Rankmeonline is your brand monitoring platform which gives businesses its Reputation score on the basis of your customer’s perception through their reviews and ratings. RankMeOnline is review monitoring tool as well as reputation monitoring tool. Social media reputation management is always important.