Using Net Promoter(r) Score to Bolster Your Brand

Anybody in business wants to know how they are doing. Feedback on what customers like, what they don't like, what they want, etc. There is a lot of effort spent on discovering what will make for a bigger, better, more profitable business. But, there is something very simple about what a customer feels/knows/wants that when learned, can help a business work backawards to find out what really could be better.

Bain & Co, a management consultancy, developed Net Promoter Score. The formula suggests that customers fall into three (3) categories:

Promoters: People who buy, continue to buy, and promote you to others
Passives: The satisfied customers without an anchor (competitor bait)
Detractors: Unhappy customers who don't see value in the relationship, usually telling others about their unhappiness

Understanding this segmentation, you ask your customers the following question:
How likely is it that you would recommend us to a friend?

On a scale of 0-10:
Promoters: 9-10
Passives: 7-8
Detractors: 0-6

Take the percetage of total respondents who were Promoters and subtract the total respondents who were passives. For example, if you gave the question to 10 customers, and five gave you a 9 (50%) and four gave you a 6 (40%), your NPS would be 10%.

So what does this all mean? The Promoters represent the portion of your customer population that are most likely to continue doing profitable business with you. They represent long-term value to your business. The example also means you have a great opportunity to explore the world of service, because with a 10% NPS, you could have a long way to go. You need to take care of your brand and for every detractor you have, the value of your brand goes south. If you don't think so, just think back to the last time you told someone to stay away from a car dealership or a credit card. You are not immune. Your brand is at stake.

Net Promoter Score is an awesome brand. One question + One formula = Amazing Results. NPS is not complicated and easy for one to communicate to another. Even if you are not prepared to find out how your brand is working in the marketplace, I encourage you to visit the NPS web site and spend 15 minutes getting your arms around the concept. Then, spend 15 minutes planning how you are going to go about asking your customers the questions. Then, get to work. This is a high priority item, no matter how many complaints or compliments your business receives. Good luck.