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The Single Best Tool to Grow Your Business

May 3rd, 2016

Many companies looking for growth do it by cultivating intensely loyal customers, and invest a lot of time and money in order to measure customer satisfaction. If you’re like most, you give up trying, because these measurements are not only complex, but also ambiguous in results – causing a lot of confusion and stress. Thankfully, there is one way that has been reported to be very effective in a lot of cases, called the Net Promoter Score.

Your Net Promoter Score (NPS) is a tool used to gauge the loyalty and satisfaction of your customers. This single tool serves as a great alternative to traditional customer satisfaction surveys and is said to be related to revenue growth.

The good news is, you only need to ask your customers ONE QUESTION to predict your growth potential through referrals and re-purchases.

Your one question is: “On a scale of zero to 10, How Likely is it that you would recommend our company to a friend or colleague?” you find out what the ratio is, between your promoters and your detractors. When customers recommend you, they are putting their own reputation on the line, and they will take that risk if they are extremely loyal – they become promoters. The more “promoters” your company has, the bigger its growth.

Responders are rated as follows:
Promoters consist of a score between 9-10 and are loyal customers who continue to buy and refer others, leading to revenue growth.

Passives consist of a score between 7-8 and may be satisfied customers, but uncommitted, not loyal and are quick to jump ship to another competitor.

Detractors consist of a score between score 0-6 and are unhappy customers who can easily damage your brand through negative word-of-mouth.

The NPS Calculation
Take the percentage of Promoters and subtract the percentage of Detractors – this will give you the Net Promoter Score, which can range from a low of -100 (all Detractors) to a high of 100 (all Promoters). This question can be followed with an open-ended request for comment and elaboration, signifying the reasons for the customer’s rating that they had given.

These results can then be shared with your employees and management teams for efficient follow-up.

Increasing Your NPS Score
In order to increase your NPS score, you need to ensure that all employees feel empowered to act on behalf of your company in order to improve the customer experience. Once this is accomplished, everyone is engaged and equipped to make sure your customers are happy. It is a win-win all around.

Benefits
Improving the customer experience, (and therefore your Net Promoter Score), results in a number of business benefits; higher margins (Promoters are less price-sensitive than Detracters), higher annual spend (Promoters tend to buy more), greater cost efficiencies, higher retention rate, and more positive word of mouth – put them together, and your on your way to a very successful business!

To find out how Success 4 Business might be able to help you and your business going forward, go to www.Success4Business.ca.
Sources:
https://www.netpromoter.com/grow/
https://www.promoter.io/
https://en.wikipedia.org/wiki/Net_Promoter
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