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Net Promoter Score: How likely are you to attract referrals – take the test and discover your net score Posted on October 9, 2018
As small business needs to attract customers via referrals, this month we thought we would share with you how it works so that you can assess, measure and graph the likelihood of you attracting business from referrals using Reichheld’s model.
The Net Promoter Score, or NPS®, is a straightforward metric that holds companies and employees accountable for how they treat customers.
It has gained popularity thanks to its simplicity and its linkage to profitable growth. Employees at all levels of the organisation understand it, opening the door to customer- centric change and improved performance.
Net Promoter programs are not traditional customer satisfaction programs, and simply measuring your NPS does not lead to success.
Companies need to follow their own internal processes to actually drive improvements in customer loyalty and enable profitable growth.
NPS is based on the fundamental perspective that every company’s customers can be divided into three categories – Promoters, Passives, and Detractors – by asking one simple question…
“How likely is it that you would recommend [Company X] to a friend or colleague?”
You can track these groups and get a clear measure of your company’s performance through its customers’ eyes.
Customers respond on a 0-to-10 point rating scale and are categorised as follows:
(i) Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, fuelling growth.
(ii) Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offering
(iii) Detractors (score 0-6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth.
To calculate your company’s Net Promoter Score (NPS), take the percentage of customers who are Promoters and subtract the percentage who are Detractors.
The over all % becomes the basis for improvement and the key measure to improve your word of mouth referrals.
To increase the amount of business you write from word of mouth, make a booking to attend one of our award winning workshops, PRE-REGISTER TODAY!