What You Need to Know About the Power of NPS Scores in Retail
Every day, the retail landscape is becoming increasingly competitive as new organizations make their presence known in the world of online shopping. For many businesses, this has led to something of a “race to the bottom” as far as pricing is concerned – which is problematic, particularly if you actually want to grow your company and make the profits you need to sustain your efforts over the next few years.
Luckily, this isn’t necessarily bad news at all. Customers have proven in the past that they are willing to pay more money for an exceptional experience – meaning that for many, the quality of one’s services has become the key value differentiator.
Because of that, determining precisely how effective your business is at making customers happy is of paramount importance. More often than not, brands have a tendency to overestimate just how pleased their customers are – leading to mistakes that can be difficult (and costly) to recover from.
This, in essence, is why the Net Promoter Score is so invaluable. It’s more than just a system that allows you to quickly and accurately determine how happy your customers are. It’s also a way to generate vital insight into what it will take to build the kind of successful retail business that is strengthened by genuine relationships with the people you’ve dedicated yourself to serving.
Retail NPS Scores: Breaking Things Down
Though the math behind NPS scores may seem comprehensive, the idea at the heart of it is actually fairly straightforward. Simply put, it’s a metric used to measure the loyalty of customers to a company – something that won’t just turn a prospect into a customer, but that will also keep that customer coming back for more.
NPS scores are typically measured with a single question survey that is then reported via a number on a scale from 0 to 100. The higher the score, the more loyalty you’ve been able to earn. Note that customers themselves are asked how likely they are to recommend your business, its products and its services on a scale of 1 to 10.
Depending on the response they give, customers will fall into one of three categories:
- Detractors are those who respond with anything from 0 to 6. They’re generally unhappy customers, which means they’re not going to buy from you again – and they might even try to talk other people out of doing so.
- Passives indicate their experience with a score of 7 or 8. They’re satisfied with everything that has happened so far – but not necessarily enthusiastic.
- Promoters are those who give a score of 9 or 10. They’re not just enthusiastic customers – they’re also the kinds of loyal ones you need to thrive.
Two weeks ago, the Glympse team had the honor of meeting with one of the single largest retailers in North America. During their discussions, they indicated that they were very interested in leveraging things like our streamlined last-mile delivery solutions to meaningfully improve their NPS scores moving forward. This in and of itself is important to mention, as even the “large” and “well-established” brands understand just how important customer experience has become in the modern era.
If you’d like to find out more information about the impact of NPS scores in retail, or if you’d like to learn more about how you can solve the last-mile gap between your company and your customers with Glympse, please don’t delay – contact us today.