Net Promoter Score (NPS): What Is It? & How To Calculate

What do the Apple iPhone 14 Pro Max and Taylor Swift have in common?.

For one thing: It’s their loyal following.

Despite its steep price, the Apple iPhone 14 Pro Max emerged as the highest-selling iPhone model in Q4 2022 in the US. 

Taylor Swift currently has 92.4 million followers on Twitter, 246 million Instagram followers, and over 77 million Facebook followers. Her Instagram followers would equal half the population of the European region. 

What does this loyal following do? It evangelizes offerings to friends, relatives, and neighbors. So, their brand reputation consistently remains intact or grows but does not fade away. This likelihood of recommending the brand to others is what we call a Net Promoter Score (NPS) in the business. Without any delay, let’s jump right in!

What is Net Promoter Score (NPS)? 

Net Promoter Score is the metric that measures customer experience, satisfaction, and loyalty. As we saw earlier, it answers the question, “How likely will a customer recommend your business to others on a scale of 0 – 10?”

• A range of 9 to 10 means they are promoters
• A range of 7 or 8 means they are neutrals or passives
• A range of 0 to 6 means they are detractors

How to calculate Net Promoter Score?

To calculate the NPS, we use the following formula:

NPS = Percentage of promoters – Percentage of detractors (We don’t use passives Percentage in this formula)

NPS score ranges between -100 to 100. Bain & company mentions that an NPS score above 0 is good, 20 is excellent, above 50 is fantastic, and above 80 is the top percentile. If your NPS is negative, your company has more detractors than promoters, and they are unhappy with your brand. 

In a survey of 1,359 professionals, 44.5% of the respondents stated that customer experience is their primary differentiator. Customers must be wowed by an offering to willingly recommend a brand to others. They will recommend it to others if they get a consistent positive delivery experience from a brand. 

How To Improve Net Promoter Score (NPS)?

The NPS score was first introduced by Fred Reichheld in 2003. From then on, many companies like Amazon and Mercedes-Benz adopted this measure and changed their businesses. 

The concept of NPS is finding a renewed focus in courier companies. Courier businesses use NPS as powerful feedback mechanisms to spot the gaps in their delivery services and make strategic decisions to bridge them. But the rising complexities and inefficiencies are making it difficult for courier companies to improve their NPS score. Let’s find out how your courier businesses can improve their NPS. 

Enable transparency to keep customers updated 

When your courier office receives more Where Is My Order (WISMO) calls from angry customers, it’s a wake-up call to improve transparency. By providing live tracking pages and timely alerts on order status, your customers feel happy and secure about the status of their shipment. Even if there are any delivery exceptions or likely delays, you can keep customers updated on it. 

Investing in dispatch management software is the best way to build this kind of transparency. With its white-label tracking page, dispatch management software provides automated notifications to customers about the order status. Also, it collects the customer feedback on deliveries to help your business improve the quality of deliveries. Modern customers care more about the predictability of deliveries than their speed. With improved transparency and communication, deliveries become predictable, improving your NPS scores. 

Want to know how an automated tracking system can transform your delivery process with real-time visibility?

Transform Your Delivery Process with Locus’ Automated Tracking System

Improve OTIF and FADR scores 

There is always one question that can make a huge difference when asked in business or anywhere else. One such question for courier companies in the last mile is;

Are the orders delivered on time on the first attempt? 

This question lies at the intersection of customer experience and profitability. And the two critical metrics that answer this question are;

• On-Time In-Full – OTIF 
• First Attempted Delivery Rates – FADR

When your business delivers an order when customers are unavailable or delays delivery, it results in reattempted deliveries—every reattempted delivery results in 4x more costs than standard delivery. 

Moreover, customers would feel your business fails to fulfill its delivery promises and move on to your competitors. This pulls down the brand reputation and reduces your NPS score. So, to improve the NPS score, delivering orders on time at the first attempt is essential. 

Are you looking to find out how to win customer delight with an exceptional delivery experience?

Power customization with delivery-linked checkout

A huge mistake courier companies make is that they don’t provide multiple time-slot options to customers. Providing multiple time slots is no more a luxury option today. 

Customers are busy with numerous tasks, and managing time is getting a lot more complicated. When they get multiple time slot options, they can select the one that’s convenient for them. It gives them trust in your business that orders will be delivered at their preferred time. Also, a customer’s trust increases when your courier business lets them reschedule their delivery timings even after dispatch. This, in turn, increases the NPS score. 

But how to provide these time-slot options that best suit their needs? The answer lies in delivery-linked checkout, a feature that lets your customers select from a wide set of convenient time slots before placing an order or even after the dispatch. All while accounting for the capacity, logistics, and business constraints and offers available time slots based on them. 

The time preferences of a delivery zone with working population, housewives, teenagers, children and retired people varies. The best way to capture a broader set of shopper segments and widen the customer base is by using delivery-linked checkout. 

Make new inroads in NPS scores with Locus’ dispatch management platform 

In the race to win customers with massive constraints, many courier companies need help improving their NPS. Despite all the odds, businesses must consistently deliver an exceptional customer experience. But providing a superior customer experience without compromising profitability is challenging. 

So how do courier companies strike the right balance between customer experience and profitability?

The answer lies in Locus’ dispatch management platform. It enables, courier companies to provide multiple time slot options for customers. This makes it easier to assign and manage dispatch orders. Its analytics-based insights, enable your business to rectify the SLA breaches and significantly improve efficiency. 

Most importantly, Locus’ dispatch management solution provides a real-time tracking link to your customers with timely notifications on order progress. Beyond providing transparency and providing delivery updates, it lets your customers reschedule their orders even after the dispatch. This makes it easier for your courier business to reach the customers when they are available, minimizing delivery reattempts, and improving your chances of a better NPS score. 

Are you looking to add up your NPS score without adding to your costs and ensuring efficiency?

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References

https://cirpapple.substack.com/p/iphone-14-is-a-dominant-lineup
https://www.statista.com/statistics/1076074/organizations-customer-experience-competitive-differentiator-worldwide/