The Power of Recommendation - Net Promoter Score
How likely are you to recommend?
The answer of this question divides your customers into three categories:
Beware of them!
You can win or lose them!
Promoters make you more money!
Three objectives for the Net Promoter Score:
Simple measurement, benchmarking and prediction
Deeper understanding and identification of focal points
A way to balance short and long term
Three reasons to track your NPS
“Would you recommend this company or product to a friend ?” is the top correlate to actual customer behaviour: 80% of the time.
Those customers who are active “promoters” of the brand, have a higher customer value than those who are detractors.
There is a direct correlation between the % of net promoters a company generates and its revenue growth.
Advantages of mapping your NPS
When it comes to customer experience, most companies focus on the long-term opportunities for improvement. But in the process they often forget to look at what they are getting right. And how this can generate growth and profit today. Especially during the current economic climate, balancing the short and long-term implications of customer centricity as well as Net Promoter™ data is important. After all, mapping your NPS against the market opportunities at hand, allows you to:
- prioritize your portfolio of products, businesses or customers
- identify the opportunities for “quick win” sales and profit
- demonstrate the long-term business case for customer-centricity (by achieving short term results)