The Net Promoter Score is the focus of one of the modules in the Value Builder System. Earlier this year I became a certified value builder advisor. I thought that it would provide additional structure and accountability to building business mastery for the members of Attollo and it has delivered.
Alongside the Attollo members, I am working through each of the modules as they are presented each month during the peer group meetings to increase my own proficiency in business mastery. We never stop learning! Some modules are easier to implement, while others are a bit more challenging including when they call “The Customer Score”. The Value Builder System makes it very easy to create a customer score questionnaire, send out a link inviting your customers to rank your business from one to 10, and create a score all conveniently created from The Value Builder Platform.
Net Promoter Score (NPS) is a simple but profound customer satisfaction measurement taken by asking the question of your customers how likely they are to recommend your product or service to a friend or colleague on a scale of 0-10.
NPS is a predictor of business growth. When your company’s NPS is high or, at least, higher than the industry average, it’s an indicator that you have a healthy relationship with your customers who are likely to be repeat customers and also be evangelists for your business through word-of-mouth raves, which generates growth.
Scores of 0-6 are “detractors” these are customers who are unlikely to recommend your company or product to others, probably won’t stick around or repeat purchases, and could actively discourage potential customers away from a business.
Scores of 7-8 are “passives”. These are customers not actively recommending your business or brand but are also unlikely to damage it with negative word of mouth.
Scores of 9-10 are “promoters”. These are customers who are your most enthusiastic and loyal customers. They are likely to act as your company “ambassadors”, enhancing your company’s reputation, and refer your business to others.
The Net Promoter Score is calculated simply by subtracting the percentage of customers who answer the NPS question with a 6 or lower (the ‘detractors’) from the percentage of customers who answer with a 9 or 10 (the ‘promoters’).
An additional and optional question is why they gave the company the score they did. Of course, many leaders might be thinking of the psychology and impact of negative views on Yelp or Trip Advisor. The difference is that on those platforms the business has no control over the review and the score they are given. In the case of the NPS, you are asking for a score in order to improve the business for the individual answering the questionnaire and for future customers.
I have to admit I delayed sending out my own questionnaire to the Attollo members because, let’s face it, no one wants to hear criticism. We all want to hear just the good stuff about ourselves and our business. I know a few business owners who told me that would never contact an existing client for anything and to let “sleeping dogs lie” or “I don’t go looking for trouble”. The Net Promoter Score questionnaire may indeed plant a seed of doubt as to why they are your customer in the first place if they are detractors!
The thing is if your customers are stark raving fans, and they truly love your business they will answer the questionnaire honestly in order for you to improve your organization. Ever heard of the acronym “NICE”? if someone is just being NICE to you it means they won’t tell you the truth about your situation. It stands for nothing inside cares enough. If they love your business they won’t be NICE, they will be truthful and that truth will set you…. on the path to greater success and happiness.
So, after a few weeks of kicking that task of sending out the anonymous NPS survey to my members from one day to the next, I finally sent it out. I have to tell you that a number of them were not NICE because they love the organization.
I got a lot of honest, actually, brutally honest commentary about the organization and it inspired me to improve the organization for them and for future members. The challenges presented to me were not my blind spots which I know I have but were actually my weak spots which can be just as damaging to an organization. I am truly thankful for the feedback. It has forced me out of my comfort zone and into areas I know will help grow the business and better serve my current and future members.
The danger is acting on what you believe satisfies the customer. You will inevitably make the wrong assumptions. Leadership should not even try to guess at the answers; it should always go to the customer in a systematic quest for those answers.
Peter Drucker mentions in his book “The Five Most Important Questions” that you cannot arrive at the right definition of results without significant input from your customer. In business, a customer is someone you must satisfy. If you don’t, you have no results and pretty soon you have no business. The danger is acting on what you believe satisfies the customer. You will inevitably make the wrong assumptions. Leadership should not even try to guess at the answers; it should always go to the customer in a systematic quest for those answers.
I believe that the Net Promoter Score is the single best way to get to the issues that stand in the way of serving your customer and ultimately your long-term success.
If you are curious, take a free Value Builder Assessment and benchmark your business against others in your industry. It takes less than 15 minutes!
