Measuring performance: The importance of Net Promoter Score (NPS)

14/08/2017

Recognising the importance of your clients’ opinions is crucial to business success, after all they are the best advocates for your business. Measuring their likelihood to recommend you acts as a litmus test for your own performance.

Using a Net Promotor Score (NPS) is the simplest way to gather this data, we’ve compiled a few examples of why it’s so important:

It allows you to recognise potential promoters

The NPS not only gives you an overall sense of how your business is performing with clients, it can also help you to highlight specific clients who are more likely to recommend your business to others. A short question is sent out to all your clients through your CRM, asking them how likely they would be to recommend you on a scale of 1-10. Those who score 9-10 are called promoters, people who would actively recommend and talk positively about your business. Understanding who your promoters are gives you opportunity to capitalise on them, perhaps collecting testimonials or case studies on the work to date.

You can see where you need to improve

Those who score between 7-8 are called passives, these are people who are unlikely to talk about your business either positively or negatively. They are easy targets to bring up to a 9 or 10 and although the NPS score can’t specifically tell you where improvements need to be made, it’s useful in opening the door to  conversations about how you can improve your service for them.

You can become more proactive

By asking your clients their opinion and reacting to it appropriately, you can move from a more passive style of account management to something more proactive and positive. Being able to address scores awarded by clients gives you a better understanding of the service you’re providing and makes you better placed to generate improvements.

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