Lacking customer feedback will leave you in the dark, with no guidance on what direction you should take your business.
Nothing is more motivating than hearing what your customers love about your product. Double down on that, increase customer loyalty, and encourage your customers to share their experience with others.
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Net Promoter Score (NPS) is a specific metric for measuring customer satisfaction and customer loyalty. A standardized question "How likely are you to recommend our product/service to a friend or colleague?" is used with standardized response options of a scale from 0 to 10. The responses are categorized into the following groups:
The responses are then calculated into a score, your NPS, using the formula:
NPS = % Promoters - % Detractors
The benefit of having a standardized way to measure customer satisfaction is that you can compare your NPS against other businesses in similar industries. Keep in mind that industry average NPS scores can differ largely depending on cultural regions and business industries.
Customer satisfaction, as its name implies, is the practice of measuring how satisfied or happy your customers are. NPS is the most common metric, however other common metrics include CSAT Score (Customer Satisfaction Score) and CES (Customer Effort Score). Customer satisfaction is one of the measurements commonly used in analyzing UX. Surveying for customer satisfaction at different touch points with your user is a great way to track where your users may be experiencing friction.
Read here for ideas on how to use post-purchase surveys to improve customer satisfaction
Giving your customers a great user experience and high satisfaction can convert them into advocates for your business. Not only does it increase the likelihood of them returning as repeat customers, customers recommending your products to others through word of mouth can be a powerful marketing channel for your business.
Average NPS scores can differ largely depending on cultural regions and business industries. However as a general rule of thumb the creators of the NPS, Bain & Company, suggest the following break down: