In talking to many business owners in the last several months, I am surprised at the high percentage that are not aware of a key business indicator called “Net Promoter Score.” So much has been written on its value and for good reason as it’s been proven with extensive research to be the best predictor of a business’ future brand success and profitability.
The developers of NPS, Bain and Company, have done extensive analysis that shows that sustained value creators—companies that achieve long-term profitable growth—have Net Promoter Scores (NPS®) two times higher than the average company - and on average grow at more than twice the rate of competitors.
So what exactly is a Net Promoter Score? It’s a method of tracking an organization’s performance through its customers’ eyes. To calculate NPS, start with the question, “How likely are you to recommend us to a friend or colleague?” and score the answers on a zero-to-ten scale. Your Net Promoter Score is simply the percentage of customers who are promoters (those who scored 9 or 10) minus the percentage who are detractors (those who scored 0 to 6)
Sounds simple, right?
In a way it is, but the impact is tremendous to a business’ success. Thousands of innovative companies have adopted NPS into guiding their marketing efforts. Over time, each one developed and expanded it. They improved the methodology. They extended its use beyond customers, applying it to help build employee engagement and commitment. They discovered new methods to broaden its impact, not just to measure customer loyalty but to transform their organizations.
Incorporating NPS can be a key component to unlocking your brand’s potential. I incorporate my clients NPS into my research and planning. Once we have a baseline number, I then identify ways for my clients to improve their scores, which means higher brand value and greater profits. If you would like to learn more or know of someone who could benefit from utilizing these strategies, feel free to call or email me.