Since its inception in 2003, the Net Promoter System has superseded other customer success frameworks by measuring how frequently organizations convert consumers into advocates. It’s become the predominant customer success framework used today by 2/3 of the Fortune 1000. NPS has become so embraced because it solves a vital challenge that financial systems fail to answer. Financial data can easily give you information about profit obtained from the sales you made to customers, but it can’t give you an answer to how your product or service improved the life of a client, and that is exactly what Net Promoter Score does. It gives you very important qualitative data that affects revenue. NPS analysis divides your customer base into three categories: Promoters (customers that are pleased with their experience and therefore recommend your brand to others), Passives (who are somewhat pleased with their experience; they believe that they got exactly what they paid for and nothing more) and Detractors ( customers who are disappointed with their experience and harm the firm’s growth and reputation). NPS is calculated on a scale of 0–10, while promoters give a scale of 9 or 10, passives give a scale of 7 or 8, and detractors give a scale of 6 or less.

When customers are satisfied, they come back for more and they bring their friends along. Customer advocacy is the core of NPS (customer advocacy which is the act of building and maintaining relationships with devoted consumers, who later serve as spokespersons and advocates for your brand, goods, or services). The impressive outcome from NPS leaders demonstrates the effectiveness of consumer advocacy.

I will be sharing with you how to use Net Promoter Score to win clients and influence sales.

Increase the number of sales referrals by utilizing promoters

Promoters are customers who will passionately recommend your company to others. Statistics prove that business referrals are an inexpensive and effective way to generate new business:

• When referred by a friend, people are 4x more likely to make a purchase.
• The lifetime value of a referred customer is 16% higher than that of non-referred customers.
• Customers acquired through referrals have a 37% higher retention rate.
• Referred customers have an 18% lower churn rate than customers acquired by other means.
• Referred customers generate 16% more in profits than non-referred customers.

The most intriguing thing is this: when customers have a great experience, 83% of them are willing to recommend your business, but only 29% actually do. However, NPS allows you to swiftly pinpoint the clients who are most likely to recommend you to others and encourage them to do so. How do you do that ? After a customer has spent some time with your products, services, or goods, it is important to send them a net promoter survey for them to access your business On a scale of zero to ten, If a customer gives you a score of nine or ten, which indicates that particular customer is a promoter, mark that customer as a promoter and send them a subsequent email or message on their social media, or whichever channel you use to communicate with your customer, giving them an offer that seeks to reward them should they refer others to you. Even though some promoters are willing to refer you to others for free, it is always a good idea to incentivize them because if you reward your promoters, they will be more loyal to your brand.

To reduce customer churn, follow up with detractors

What does “customer churn” mean? Customer churn is a metric used to determine how many customers leave a business in a certain time frame. It might also refer to the total amount of money that was lost as a result of departures.

Customer retention plays a crucial role in the growth of any business. In order to retain your customers, you have to keep them satisfied and immediately correct bad experiences. As soon as you identify a customer as a detractor, it is important to follow up with them and find out their reason. Be sure to listen to every detail, show empathy, and assure them of correction as soon as possible, but remember not to over-promise or under-deliver. Consider giving them a discount offer to apologize for the bad experience. A customer is less likely to churn if a business goes through this process to correct their mistake. But note that it doesn’t end there. After a while, resend a NPS survey to those detractors in order to identify if your response yielded a result.

Make improvements to your products and services

A company’s Net Promoter Score is a metric that measures how likely customers are to recommend a company to their friends and family. It is a great metric to use to improve your products and services. How is that possible ? You can easily follow up with your customers and try to find the best possible ways to improve upon your product. Take note of each response, as well as any specific feedback related to improving the product’s features or services.Take note of complaints that have the highest number of responses; these are the areas that aggravate customers the most, so they should be given priority.

Utilize promoters to raise brand awareness

Fred Reichheld (the creator of Net Promoter Score) said it best: “The only path to profitable growth may lie in a company’s ability to get its loyal customers to become, in effect, its marketing department.” When you identify the promoters of your business, reach out to them to discuss possible marketing opportunities that are beneficial to them. Here are some easy tips you can follow to help you:

Clients who are active on social media should be encouraged to share content.

Ask Customers Who Praise Your Product Features to Write Reviews About Your Product or Service. Even though some consumers would happily assist you without being asked, your efforts might be more successful if you reward customers or implement a loyalty program.

Conclusion

NPS alone wouldn’t grow your business, but it is an important stepping stone to help improve customer loyalty and identify areas of improvement. A satisfied client is a returning client, and a returning client helps boost sales, and a business with good sales (all other things being equal ) is a growing business.