Archive for June 28, 2017

How to Calculate NPS

 

Net Promoter Score

 

Net Promoter Score (NPS) can be a helpful snapshot of satisfaction and to learn more about consumers who are detractors, promoters, and passives. If you are collecting NPS data from multiple sources, you may be wondering how to calculate this score manually.

If you’re not familiar, NPS is a score that measures satisfaction. It’s based on one question you may see often on customer feedback surveys, asked on phone interviews, or even see on mystery shopping reports.

The question is quite simple: “On a scale of 0 to 10, how likely are you to recommend this company’s product or service to a friend or colleague?”

There are two data points to look at – the actual score given and the NPS score.

The actual scores, of course, range from 0 to 10, with 10 being the most satisfied. This is a helpful data point to look at for determining which customers, or how many customers, are detractors, promoters, or passive. This is how each category is defined:

Detractors are those giving ratings 6 and below. They are not particularly thrilled by the product or the service. They, with all likelihood, won’t purchase again from the company, could potentially damage the company’s reputation through negative word of mouth.

Passives are those giving ratings of 7 or 8. They are somewhat satisfied but could easily switch to a competitor’s offering if given the opportunity. They probably wouldn’t spread any negative word-of-mouth, but are not enthusiastic enough about your products or services to actually promote them.

Promoters are those giving ratings of 9 or 10. They love the company’s products and services. They are the repeat buyers, are the enthusiastic evangelist who recommends the company products and services to other potential buyers.

The second data point is the actual NPS score, which can range from -100 to 100. This is calculated by subtracting the detractors from the promoters – sounds easy, right? But what happens when you are collecting NPS data from multiple sources and end up with a spreadsheet of data? It could take all day to try to calculate manually. There is an easy formula to calculate this in Excel, and it only takes a few minutes.

Once you have your column of NPS data, you’ll want to add a formula to calculate your score.

The formula is: =100*(COUNTIF(BU2:BU27,”>8″) COUNTIF(BU2:BU27,”<7″))/COUNT(BU2:BU27)

In the example above, it assumes that your NPS scores are located in column B, rows 2 through 27. To make this formula work for you, all you need to do is change out BU2 and BU27 to the column and row numbers that contain your data.

Let’s take a look at a quick example of how the formula would change based on your data. If this is what your spreadsheet looks like, with the last column (E) being the data for NPS, which goes from row 2 through row 43:

 

 

Then your formula would look like this:

The formula is: =100*(COUNTIF(E2:E43,”>8″)-COUNTIF(E2:E27,”<7″))/COUNT(E2:E27)

All it took was a quick replace of BU with E.

NPS is a great tool to get a quick snapshot of satisfaction levels; it’s no longer a chore to calculate it manually across multiple touch points, so make sure you’re asking that very important question at every opportunity possible!

 

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Is Amazon Playing Defense To Walmart?

It blows my mind that retail has come to Amazon vs Walmart.

Walmart. Really?

It seems so, and Amazon has taken notice.

It seemed to start with Walmart’s purchase of Jet.com … that was the first time people started paying attention to the fact that Walmart was eyeing Amazon as the one to beat. And back then, to many, it seemed like a futile attempt on Walmart’s part.

At that point, Walmart’s “ship to store” and “buy online, pick up in store” were painful to be nice. Ship to store would take up to 7 days, even at a time where Kohl’s was stepping in with two to four hour pick up windows. What was even more jarring was when you’d order something online to pick up in store, be told to wait 7 days, but visit the store in the meantime and see that item on the shelf, ready to go. Made no sense.

They also toyed with the idea of hiring customers to deliver online purchases and, more recently, having employees deliver orders on their way home from work. Many saw these as feeble attempts to try to be like Amazon, even if just a little.

But then the retailer got serious.

It seems that the purchase of Jet.com started something big between the two retailers. Amazon started to take notice, and Walmart steadied itself and became more significant.

Outside of buying Jet.com, what else has Walmart done?

  • Made significant improvements to its Ship to Store and Buy online, pickup in store features.

 

  • Implemented a two day delivery program (dubbed ShippingPass) at a reduced rate of $49.99 a year compared to Amazon’s Prime at $99.00 a year.

 

  • Walmart quickly ditched this program, refunded ShippingPass members who paid the membership fee, and lowered the minimum purchase to qualify for free shipping to $35 to be more in line with Amazon.

Earlier this month, Amazon took a big swipe at Walmart and the grocery industry by announcing the purchase of Whole Foods. Unfortunately, this major announcement trumped Walmart’s announcement, which came only hours later, that the purchased Bonobos, a men’s online retailer, in an attempt to continue to expand their online presence.

It’s been fascinating to watch these two retailers to see what happens next.

But why is Amazon seemingly most worried about Walmart, more so than other retail giants such as Target? It’s simple:

 Wal-Mart has stores within 10 miles of 90% of the U.S. population.

Walmart doesn’t need to worry about drone delivery, or addign distribution centers; they are already in place via their retail stores. By increasing their footprint online, they’re positioning the company to be a main competitor to Amazon.

While it’s interesting to watch how this develops over time, it’s sobering to remember that these two companies are responsible for the changing landscape of retail. Right now it seems like it’s hurting the industry overall, with some long standing retailers hurting to the point of potentially going out of business. However, change is not always negative, and while this appears to be a rough spot across the industry, the changes may be for the positive in the long run. Only time will tell.

Yelp Treats Users to Secret Menus

 

https://www.yelp.com/events/chicago-order-the-yelp

 

Yelpers in Chicago and DC have a reason to celebrate (and use their Yelp app) – “Order the Yelp” is happening this month!

This is a fun event hosted by Yelp, the well known and well used review site. During the event, restaurants local to the area will offer secret menus at a 50% discount, which is only available to those who check in via the Yelp app.

According to a recent Chicago article, there are many new and secret items being showcased. From the article:

As part of the “Order The Yelp,” 50 restaurants will offer new, never-before-seen items for their menus. These include Mongo Mousse and Mango Ice Cream at Artango Steakhouse, Yelp Steak N’ Fry Pizza at Dimo’s, George’s Feta Dog at George’s Hot Dogs, A Double Decker Yelp Lamb Shammi Burger at Hakka Bakka, The Check In Sandwich at Pastoral, Tsukemen Yelp Ramen at Strings and 5 Star Yelp Balls at Yum Dum Food Truck!

Chicago’s “Order the Yelp” event goes through June 17th and it looks like the Washington DC Metro is hosting a similar event through June 30th.

This is a win-win situation for restaurants and customers. Restaurants can increase business by offering secret menu items, which will in turn increase the restaurant buzz. Because customers need to check in with their Yelp app, they may be more inclined to talk about the restaurant. Customers, on the other hand, are getting first shot at new menu items and a nice discount for their patronage.

Is your restaurant active on Yelp? Even if you’re not, it’s likely your customers are. Take a look at claiming your business on Yelp and using the site as another way to gain followers. Who knows – maybe next time your restaurant can participate in “Order the Yelp.”