What Does NPS Stand For in eCommerce?

Successful eCommerce businesses understand that acquiring loyal customers is not a one-time occurrence. It's a methodical, deliberate process. Customers who sing your praises will not fall into your lap. You must earn them.

To gain more loyal customers, you must first recognize where your current customers stand and how you can engineer experiences that can convert them into brand promoters. This is why the Net Promoter Score (NPS) is such an important metric for any eCommerce business. It has a significant impact on customer retentionStrategies aimed at keeping existing customers engaged and encouraging repeat purchases. and can help forecast consumer behavior.

What Does NPS Measure?

The net promoter score is a metric that indicates how many customers would recommend a product or service to others. This is one of the most important KPIs for a company to monitor because it provides direct insight into customer satisfaction and brand loyaltyThe tendency of consumers to continue buying the same brand's products or services.. NPS assesses a company's ability to retain quality consumers.

How Do You Calculate NPS?

The following formula is used to calculate NPS:

NPS = %Promoters – %Detractors

The NPS can range between -100 (the lowest NPS) and +100 (the highest NPS) (highest NPS). A negative NPS indicates that your company's detractors outnumber its promoters. A low score may be one of the reasons why eCommerce businesses are unable to deliver high revenues and long-term growth. In the context of the broader economy, thriving eCommerce businesses with positive NPS scores can significantly contribute by creating jobs, increasing tax revenues, and supporting ancillary industries, ultimately bolstering economic development.

What’s A Good NPS Score?

The average NPS is currently 34.3. A decade ago, the average Net Promoter Score ranged widely from -26 to +51. Keep in mind that in order to accurately measure your company's market position, you'll need to use an industry NPS benchmark for NPS calculations.

NPS scores vary depending on the industry — a 35 score can be a great NPS in the fashion industry, for example, but it can be terrible in the food industry, and so on.

Keeping track of the Net Promoter Score is not a walk in the park. Moreover, it’s not the only measure of your brand’s progress. Digital marketing is a serious business, and it’s best to leave it to industry experts that will help position your brand as an industry leader that’s miles ahead of the competition. When it comes to creating an eCommerce website in Joomla, trust our experienced team to navigate the complexities of web development and digital marketing, ensuring you business stands out and drives success in the competitive online marketplace.

Visit Bliss Drive today and check out our competitive analysis services to see how you fare against the competition and to collaborate with a firm that will propel you towards holistic eCommerce success.