Net Promoter Score (NPS) is a crucial metric for businesses to measure customer satisfaction and loyalty. In today’s fast-paced world, customers expect seamless and personalised shopping experiences, and retailers are facing the challenge of keeping up with these demands. Live video shopping is a new way for retailers to provide customers with an immersive and interactive shopping experience that can improve NPS scores and help businesses thrive in the competitive world of retail.
In this article, we will cover the following:
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The importance of NPS as a measure of customer satisfaction
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Practices that negatively affect NPS scores
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Ways in which live video shopping can positively impact NPS scores
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Tips and best practices for businesses looking to implement live video shopping to improve their NPS scores
The importance of NPS as a measure of customer satisfaction
The importance of NPS lies in its ability to predict future business performance. Research has shown that a high NPS score is strongly correlated with increased customer loyalty, repeat business, and positive word-of-mouth. In other words, a high NPS score can be an indicator of a successful business. Companies categorise their customers as promoters (9-10), passives (7-8), or detractors (0-6), and calculate their NPS by subtracting the percentage of detractors from the percentage of promoters.
The importance of NPS as a measure of customer satisfaction additionally lies in its ability to provide valuable insights into how customers perceive a company. A high NPS score indicates that a company has a large number of satisfied and loyal customers who are likely to recommend the company to others. This, in turn, leads to improved brand reputation, customer advocacy, and overall growth for the company.
According to the Temkin Group: “Compared to detractors, promoters are over four times more likely to repurchase from a company, over five times more likely to forgive a company if it makes a mistake, over seven times more likely to try new offerings from a company, and almost five times more likely to trust a company”.
Moreover, NPS is a valuable tool for businesses to track customer satisfaction over time and make improvements where necessary. By regularly surveying customers and tracking their NPS scores, businesses can identify areas where they need to improve and make changes to enhance the customer experience. This leads to increased customer satisfaction, loyalty, and ultimately, higher NPS scores.
Practices that negatively affect NPS scores
For businesses, a high NPS score is a crucial indicator of customer happiness and a positive reputation. However, there are several factors that can bring down a company’s NPS score and negatively impact customer satisfaction.
Poor customer service is a major contributor to low NPS scores. In a report by Venture Beat, 76% of consumers would stop doing business with a company after just one bad customer experience. This highlights the importance of providing excellent customer service in order to maintain high NPS scores, otherwise businesses are at risk of customers switching to a competitor. This unsatisfactory customer service includes a number of factors:
- A complicated checkout
- A study by Baymard Institute found that 70% of online shopping carts are abandoned, with a complicated checkout being 17% of the reason for abandonment. To maintain high NPS scores, businesses should make sure that their checkout process is simple and straightforward, allowing customers to complete their purchases with ease.
- Lack of knowledge or solutions
- Representatives who are unable to answer customer questions or provide solutions to problems can lead to dissatisfaction and a negative experience.
- Automated or impersonal service
- Customers appreciate human interaction and may not be satisfied with automated or impersonal service, such as pre-recorded messages or chatbots.
Another factor that can impact NPS scores is product quality. According to a survey by Accenture, if a customer receives a product that does not meet their expectations, 70% of the time they will switch to a competitor, resulting in a decrease in NPS scores. Companies must take care to deliver products that are of the highest quality to keep their NPS scores high. Additionally, inaccurate or unclear product information can also cause NPS scores to drop. Customers become frustrated when product information is not transparent or clear, leading to dissatisfaction and potentially causing a decrease in NPS scores. Businesses must strive to provide clear and accurate information about their products to keep NPS scores high.
Ways in which live video shopping can positively impact NPS scores
The concept of live video shopping is gaining a lot of attention from prospective businesses, and for all the right reasons. Not only does it replicate the in-store shopping experience for customers on the retailer’s website, but it also positively impacts the businesses NPS scores. One of the key ways live video shopping does this is by providing customers with a greater depth of understanding of a brand or retailers product catalogue in the items they are interested in purchasing (choice).
With live video shopping, consumers are able to interact with retail experts in real-time who can assist them with making informed purchases. For example, if a customer is unsure of what outfit to wear for an event, the retail expert can learn more about the context and the consumer’s style to best advise them on what to purchase. With these real-time interactions and expert advice, this will lead to increased customer satisfaction, and in turn higher NPS scores for the business.
Live video shopping can positively impact NPS scores is by providing a more personalised shopping experience. When customers are shopping online, they are mostly greeted with static images and brief product descriptions, with no information on how it would suit their style, or if it’s really what they’re looking to purchase. With live video shopping, however, the retail expert is able to ask personalised questions on the reason behind their purchase, and what it is they are actually looking for. This, in turn, makes the customer feel valued and understood, building trust between the brand and the customer, as well as making their purchase feel valued.
A factor that can negatively impact NPS scores are product returns, and live video shopping is seen to greatly reduce the rates. When customers interact with retail experts who can provide them with the right product information, especially on large and considered purchases, they are more likely to be satisfied with their purchases. This not only improves the shopping experience for the customer, but also saves the retailer time and money to process the return. Find out more about how live video shopping reduces return rates in e-commerce, and what online retailers can learn from physical retail.
Tips and best practices for businesses looking to implement live video shopping to improve their NPS scores
It’s all well and good knowing that a business needs to increase their NPS scores to improve customer satisfaction, and in turn profitability, but knowing where to start is key. Therefore, we have compiled a list of our best practices to ensure retailer’s deliver a satisfying live video shopping experience and boost their NPS scores.
- Investing in a high-quality live video platform, such as Confer With, that provides a seamless and user-friendly experience for both customers and sales associates will see retailer’s NPS scores increase to an excellent benchmark between 70 and 80. By ensuring that the technology is reliable and secure, this provides the necessary features and functionality to deliver a satisfying live video shopping experience.
- Sales associates play a crucial role in live video shopping and should be trained on how to effectively use the technology and provide a personalized shopping experience for customers. Businesses should train them on the best practices for engaging with customers, answering questions, and closing sales.
- Make sure that the live video shopping experience is personalised and tailored to the needs of each customer. Encourage sales associates to ask questions, listen to customer needs and preferences, and provide expert advice. By doing so, businesses can build trust and create a more meaningful relationship with their customers, resulting in greater customer satisfaction.
- Ensuring that the sales associates have a deep understanding of the products they’re selling, and answer any questions customers may have, will help customers make informed purchasing decisions and improve their overall shopping experience.
- Promote live video shopping: Make sure that customers are aware of the live video shopping option and how they can access it. Promote it on the company’s website, social media channels, and email marketing campaigns. Consider offering incentives for customers who participate in live video shopping.
- Collect customer feedback: Regularly collect customer feedback to gauge the effectiveness of the live video shopping experience. This can be done through surveys, focus groups, or customer feedback forms. Use this feedback to continuously improve the live video shopping experience and enhance customer satisfaction.
The impact of live one-to-one video shopping on NPS scores
A live one-to-one video call allows customers to speak with a sales representative in person. It provides customers with continuous access to live, real-time customer service as part of an immersive in-call shopping experience. Customers have the opportunity to directly communicate with one of the retailer’s colleagues in real-time while they are considering making a purchase through the website. It gives both retailers and consumers the chance to make online shopping highly personalised and interactive. Learn more about live video shopping, and how it can be personalised for each customer.
Regarding NPS scores, live one-to-one video shopping increases the customer satisfaction; this is done by reducing the confusion and frustration that can often occur when shopping online. This can include questions on the style and sizing of a piece of clothing, or even functionality of a technology device. With live video shopping, customers are able to see and interact with products in real-time, which can provide a more accurate representation of the product. By providing customers with a more accurate view of the product, they are able to make more informed purchasing decisions and are less likely to return items.
In fact, McKinsey indicate that “live-commerce-initiated sales could account for as much as 10 to 20 percent of all e-commerce by 2026”.
NPS scores grow when sales associates demonstrate their expertise and provide customers with a deep understanding of the products they are selling. This is measured on the Confer With platform – sharing assets and giving a selection of products to choose from increases NPS. This helps customers make informed purchasing decisions and improve their overall shopping experience.
The success of Confer With’s live one-to-one video shopping platform is evident in the likes of retailers such as Snug Sofa and Bridgman. With the implementation of Confer With’s technology, the retailers were able to remove the impersonal customer service often seen on standard websites, and instead create meaningful live shopping experiences, all from the comfort of the customer’s home.
“It has allowed us to engage with a browser on the website and move the conversation along from a light touch enquiry to a sale.” – Snug Sofa
“Being able to share a product and ensuring we’re both seeing the same thing is crucial. We always do what’s best for our customers, and now we do it without them leaving their houses. It’s super easy, and it’s in your home. It’s the most convenient thing in the world.” – Bridgman
Key Takeaways
In order to improve NPS scores, retailers and brands need to focus on providing exceptional customer service and resolving customer issues in a timely and efficient manner. Live video shopping, particularly one-to-one, is an effective way to enhance the customer experience and improve NPS scores. By offering customers the ability to connect with representatives in real-time and receive personalised assistance linked to the product catalogue, provides the human interaction that customers crave as well as the actionable element of shop ability in e-commerce leads to increased satisfaction and loyalty.
