<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=290086984736480&amp;ev=PageView&amp;noscript=1">
Search
word-map-thumb

The Alternative Board Blog

What's Your Personal Net Promoter Score - And Why Is It Important?

Oct. 18, 2013 | Posted by The Alternative Board Worldwide
Five matted yellow web button stars ratings with reflection. Bla

Recently, I had the privilege of attending a fascinating talk by John Warrilow. John is the best-selling author of Built to Sell: Creating a Business That Can Thrive Without You. Built to Sell discusses key attributes a business owner should be aware of as they prepare to sell their business. Some recommendations include: not being too dependent on the business owner and not relying on a single customer. The most sellable businesses are teachable to employees, valuable to customers, and generate revenue in a way that's repeatable.

One of the most important attributes of the value of a company is its Net Promoter Score ®. The Net Promoter Score (NPS) was developed by Fred Reichheld from Bain & Company. Reichheld determined that a high score means your customers will continue to buy from you. A mid-range score indicates they may be shopping around or at least open to alternatives. A low score means you better pacify or replace the unhappy customer, and fast.

Want additional insight? Download Setting KPIs for Business Success now to learn more

DOWNLOAD

Studies have shown that his NPS score is one of the best predictors of company growth. In fact, you've probably noticed that you're being asked the following question more frequently on customer surveys:

On a scale of 0 to 10, how likely are you to recommend us to a friend or colleague?

If you don't have a customer survey, and want to start one, this question is a good place to start. The query has become an industry standard in measuring loyalty amongst existing customers, and is a great way to tell how likely consumers are to return. The net response to this question across all of your customers will determine your NPS.

NPS scores for companies like Apple, USAA and Canon are incredibly high. You might attribute the high score to everyone knowing these huge companies, or to the fact that giant corporations have the resources to produce the best products and best brands. Some of this is true - Apple, USAA Canon etc. do have great products - which is a sign that they listen to their customers and deliver what consumers want.  But they also have great service. And great service doesn't somehow just happen better in these large and successful organizations. These great service levels are created by the outstanding service that their employees deliver day in and day out as they interact with their customers.

If you are an employee, I would ask you to assess your personal NPS. Here's a really simple way to get a sense of where you stand:

  • Take a few minutes to reflect on your last 10 - or if your interactions are more complex, your last 5 - customer interactions.
  • Now, think about the next person those customers talked to. If you're in a B2C business, maybe it was a family member or friend. If you're in a B2B business, it was probably a co-worker.
  • What do you think the customer told their friend or colleague about your interaction?
  • If they said something positive, you are helping your company's NPS. If they said something bad, you are hurting your company.
  • What if they took the time to seek out a friend or colleague, and tell them what an exceptional experience they just had? That's what USAA customers do.

If you're a business owner, ask your employees to reflect on their personal NPS, then take it one step further. Start surveying your customers using the simple questions above. Or, lookup the simple method to measure an NPS and plot yourself against the average (it's about 5-10% for a typical company). If your score is average, or a little better than average, well done! If not, you need to get to work.

For more information on business leadership, check out TAB's PULSE Survey polling small business owners on complex business topics like succession planning, national sales averages, communication, and strategic planning.

Read our 19 Reasons You Need a Business Owner Advisory Board

DOWNLOAD

Written by The Alternative Board Worldwide

Related posts

4 Simple Visuals That Can Help Customer Support In A Big Way
Jun. 13, 2019 | Posted by Ryan McCready
Visuals can help even the most confused customer figure your product out and they can explain a complex process in a very consumable way. I mean, think about how many images an IKEA instruction...
4 Tips on Creating a “Customer Experience” Strategy
Jun. 6, 2019 | Posted by The Alternative Board Worldwide
In your company, how much thought is given to the quality of interactions between your customers and your business? The experience your customers have when interacting with your brand can make all...
Are You Looking to Expand Your Business?
Jun. 4, 2019 | Posted by Phil Spensieri, TAB York Region
Over the years, I’ve coached many business owners as they’ve worked to expand their business. Whether it’s the physical expansion of your office space, expanding your workforce, or investing in new...
Turning Loyal Customers into Brand Ambassadors
May. 30, 2019 | Posted by The Alternative Board Worldwide
Gaining loyal customers is just the first step in an effective growth strategy. For many companies, the hunt is on for individuals who are so taken by their products or services that they are willing...
5 Customer Service Blunders Made by Small Businesses
May. 28, 2019 | Posted by The Alternative Board Worldwide
Is “quality customer service” part of your brand promise? If so, you’ve made a commitment to deliver an outstanding buying experience each and every time a customer (or would-be customer) interacts...
Automate Small Tasks and Stay Focused on the Big Picture
May. 23, 2019 | Posted by The Alternative Board Worldwide
A sizable portion of business operations involves tasks that are repetitive, annoying to those charged with handling them, and fairly easy to automate. In case you’re wondering which tasks fall into...
How Business Visualization Tools Help You Persuade and Communicate
May. 16, 2019 | Posted by The Alternative Board Worldwide
There are two fundamental truths about information and human nature that CEOs and business owners should probably come to grips with: We are drowning in data. Humans process information through...
How A Positive Company Culture Is Built By Aligning Employees
Apr. 25, 2019 | Posted by The Alternative Board Worldwide
What does company culture mean? Every organization comes with a unique culture, a set of agreed-upon values that govern the way the company does business. Some cultures grow with the company and...
When You're the HR Department for Your Business
Apr. 23, 2019 | Posted by Phil Spensieri, TAB York Region
Human Resources (HR) is an area that seems to cause most business owners the highest amount of stress. Unfortunately, without an HR Department, HR issues become the responsibility of you, the...
How to set up virtual office for a small business
Apr. 18, 2019 | Posted by Gary Hoffman
Virtual Office Space Dos and Don'ts You’re ready to give your business an impressive corporate presence, but you’re not willing to plunk down millions of dollars for the office space, the permanent...