Imagine a world in which your customers are so excited after shopping at your organization that they rush out to tell their friends and family. If this happened with every one of your customers you wouldn’t need to spend a dollar on advertising because all your advertising would be done for you. (Well, this is a little bit of an exaggeration but you get the point).
Sales would sky rocket; earnings would double; staff, stakeholders and obviously customers would all be happier. This is not a fantasy world, this can be achieved by managing a rating by customers from one simple question “ How likely are you to recommend?” It is called the Net Promoter Score.
“This metric creates a simple scorecard for the organization that has been shown by Bain & Company research, as well as research by a growing number of unaffiliated experts and executives, to explain significant variations in revenue growth rates among companies in head-to-head competition. In Bain & Company research, differences in relative competitive Net Promoter Scores explain anywhere from 10% to 70% of the variation in subsequent revenue growth rates among direct competitors. The Net Promoter® leader in a market grows, on average, more than two times faster than its competitors in that market.” -Bain and Company
Hmmm… powerful words with more available on their loyalty blog.
If you do not know what the Net Promoter System is, it is a system that generates a rating to gauge customer loyalty. It is blindingly simple. Based on the rating that a customer gives when asked the question “How likely are you to recommend”. Customers are then categorized into three groups: promoters, passives and detractors. The score is simply promoters minus detractors.
So you get a number? So what?
What gets measured get managed, what gets managed well gets improved. By having an objective number and system in place to capture customer feedback you now know how you are doing and you can measure objective improvement moving forward. All organizations want to improve and grow. While sales and earnings are the ultimate measure of growth, having a high NPS has been proven to accelerate growth. So why not give sales a boast by managing your organization towards an amazing customer experience to multiply that speed?