NPS is a concept introduced way back in 2003. The talks have been happening since then till now, and for a reason.
Any company out there, when it launches, the main motive is growth. Same goes for D2C brands as well.
But the whole calculation of NPS for D2C brands is particularly challenging.
Why?
Because of the direct nature of their consumer relationships and the vast diversity in customer interactions.
If looked into the B2B or B2C models, feedback mechanisms here are more structured and interactions often are more predictable.
However, D2C brands face the complexity of gathering consistent and honest feedback directly from a broad and varied customer base.
That's why they have to go with nuanced strategies for survey deployment and data analysis. So, if you are a D2C brand, we are here to make NPS easier for you. Start with:
Keeping an eye on the whole customer experience journey
For an effective NPS strategy, you must map out the customer experience journey. It's not quite a tedious process. But you certainly have to identify all the touchpoints a customer has with your brand.
It starts with the first interaction a customer has with your brand to post-purchase support. The whole process will go like:
Touchpoint identification
List all the possible interactions a customer might have with your brand. This includes the website visits, social media interactions, the service calls, and even product delivery.
Customer journey mapping
Next, map the journey. That is, create a visual representation of all the touchpoints you have listed (found) above. Illustrate a path that the customer takes. Highlight all key moments of interaction.
Experience analysis
Evaluate all the touchpoints. Determine the impact of these points on customer satisfaction. Over here you can identify potential pain points that could negatively affect the customer experience.
Once you have understood the whole customer journey, pinpointing areas that require improvement gets easier. You can even explore opportunities to delight customers.
Now, how is NPS calculated?
We know NPS is a simple yet the most powerful metric that measures customer loyalty.
It's calculated based on responses to a single question:
“On a scale of 0-10, how likely are you to recommend our product/service to a friend or colleague of yours?”
Once you have received the response, the next step is:
Response categorisation
Promoters (9-10)
These customers are highly satisfied and are most likely to recommend your brand
Passives (7-8)
These customers are satisfied but not very enthusiastic. They could be swayed by competitors.
Detractors (0-6)
These customers are dissatisfied. They could damage your band through negative word of mouth at any given point of time.
Calculating NPS
Next, you have to subtract the percentage of detractors from the percentage of promoters
NPS = Promoters% - Detractors%
For example, if 70% of respondents are promoters, 20% are passives, and 10% are detractors, the NPS would be 60.
How can one decode detractors?
See, we all know - detractors can significantly harm a brand's reputation. We can't ignore it because they still are an asset to our brand. Hence, it's important to understand their concerns and address them accordingly. One can do:
Feedback analysis
Collect qualitative feedback from Detractors. Understand the specific issues they face. Use surveys, follow-up emails, or direct conversations to gather detailed insights.
Pain point identification
Categorise the feedback. Try identifying common themes and recurring issues. This could include product quality, customer service, or delivery problems.
Actionable solutions
Develop targeted strategies. Make sure to address all the pain points. For example, if shipping delays are a common complaint, work with your logistics team to streamline delivery processes.
Let's understand this by an example:
A D2C apparel brand discovered through NPS feedback that many Detractors were unhappy with the sizing of their products. They worked on making a more detailed size guide. They also offered free returns for ill-fitting items. By this, the brand was able to reduce Detractor scores significantly.
Can we experiment with product quality and lines to improve NPS?
Product quality is a critical factor influencing NPS. Hence a brand can regularly experiment and refine their product offerings to improve customer satisfaction, how?
We have got you covered:
Product quality testing
Test rigorously. If you are bringing in new products in the market, leave no stones unturned when it comes to quality testing. Also, collect feedback from a sample group of customers before a full launch.
Iterative improvements, if any
Continuously refine existing products based on customer feedback. This could involve changes in materials, design, or functionality.
Line expansion
Experiment with new product lines to meet emerging customer needs. Make sure to do market research often. Always identify trends and gaps in your current offerings.
Can we convert passives into promoters?
Well, definitely yes. Because passives, while not actively dissatisfied, they simply are not enthusiastic enough to promote your brand. Converting these customers into Promoters can significantly boost your NPS.
Get feedback from the passives
Like Detractors, gather detailed feedback from Passives to understand their lukewarm responses. Look for patterns in their feedback that highlight areas for improvement.
Provide them more value
Focus on adding value to the customer experience. Work on improving product features, improving customer service, or offering exclusive promotions to Passives.
Increase engagement
Start out with personalised communication and loyalty programs. Show Passives that their feedback is valued and that you are committed to improving their experience.
How to maintain promoters?
Promoters are your brand’s biggest advocates. They can give you sustained growth. Hence try maintaining their satisfaction and earn their loyalty.
Engage regularly
Keep Promoters engaged with regular updates, exclusive offers, and personalised communication. Always show appreciation for their loyalty. You can do this either by offering special rewards or trying some recognition programs.
Prepare a feedback loop
Continually seek feedback from Promoters to understand what they love about your brand and where you can improve. Use this feedback to maintain high standards and introduce new features that delight them.
Build a community
Create platforms where they can share their experiences, ask them for testimonials (give them access to others too), and interact with other loyal customers.
Example: A D2C fitness brand created an exclusive online community for their Promoters. They offered them early access to new products, workout challenges, and the opportunity to interact with fitness influencers. This not only maintained their satisfaction but also encouraged them to advocate more passionately for the brand.
How can one successfully execute the NPS strategy?
Any business, to successfully execute the NPS strategy, needs a clear structure and dedicated resources, like:
An NPS task force
Create a cross-functional team responsible for overseeing NPS initiatives. This team should include representatives from customer service, marketing, product development, and logistics.
Leadership buy-in
Ensure that top management is committed to the NPS strategy. Their support is important for allocating resources and driving a customer-centric culture.
Training and empowerment
Train all employees on the importance of NPS and how they can contribute to improving it. Empower them with the tools. Give them the authority to make changes that improve customer satisfaction.
Next comes, calculating churn rates
Understanding churn rates at various touch points helps identify where customers are dropping off and why.
Do touchpoint analysis
Identify key touchpoints where churn occurs, such as during product selection, checkout, or post-purchase.
Churn calculation
Measure the churn rate at each touchpoint by tracking the percentage of customers who disengage or abandon the process.
Analyse the root cause
Investigate the reasons behind churn at each touchpoint. Use customer feedback, session recordings, and analytics data to uncover the underlying issues.
Always prioritise area to solve pain points
Not all pain points are created equal. Prioritise areas with the highest impact on customer satisfaction and NPS.
Assess the impact
Evaluate the potential impact of solving each pain point on overall NPS. Focus on issues that affect a large number of customers or significantly impact their experience.
Allocate resources
Allocate resources strategically to address high-priority pain points. This includes budget, personnel, and time.
Quick wins and long-term goals
Balance quick wins that provide immediate improvements with long-term projects that require more investment but offer substantial benefits.
How can a brand try targeted promotions to boost NPS?
See, in simpler words - Targeted promotions can incentivize customers to become Promoters and share their positive experiences. And for this, brands can try:
Segmented promotions
Use customer data to segment your audience. Then try tailoring promotions to their specific needs and preferences. Offer exclusive deals to loyal customers and special discounts to those who might need an extra nudge.
Referral programs
Encourage Promoters to refer new customers through referral programs that reward both the referrer and the new customer.
Personalised offers
Personalise promotions based on customer behaviour and feedback. Show customers that you understand their preferences and are offering something of genuine value.
Can every department track NPS?
Truth to be told - each department within your organisation plays a role in influencing NPS. To ensure a holistic improvement, it's important that every department tracks and works on their specific NPS contributions, like:
Cross-Departmental Accountability
Assign NPS goals to each department. Make sure that every team understands their impact on customer satisfaction.
For example, the product team might focus on product quality, while customer service concentrates on response times and resolution rates.
Regular reporting
Implement a system for regular NPS reporting across all departments. This helps in identifying trends, benchmarking performance, and sharing best practices.
Take collaborative initiatives
There should be extreme collaboration between departments. This is important for addressing broader issues.
For example, if shipping delays are affecting NPS, the logistics and customer service teams can work together to find solutions.