Single Most Important Number For Your Business Growth
Chances are you have already filled in the NPS score for another business without even knowing. Have you ever seen a question like this asked to you before?
Unless you’ve just discovered the internet a few days ago, you have definitely been asked this question before.
I have answered this too.
But… little did I know the importance of this simple single question. Its used to measure what is called the “Net Promoter Score”.
NPS was devised by research strategist Fred Reichheld in 2003. He called it the “The One Important Metric You Need for Business Growth”. He said growth begins with the number of customers who will also be promoters of your product.
How to Read it?
Everyone who gives your business / product / service a rating of 1 – 6 are called Detractors. Let us called them haters. They damage your brand with negative reviews, word of mouth. You will have to work on repelling these customers / clients. They are clearly dissatisfied.
The ones who give 7 – 8 are happy, but are in a place where they might jump ship to your competitors. They aren’t loyal but won’t complain either. They are called Passives or Don’t Cares.
The ones who give 9 – 10 are your best customers. They are the promoters. Or in my words “Fan-Customers” for your rockstar business.
Your NPS score is the % of Fan-Customers – % of Haters.
How to Start Measuring It?
Find a point in your customer journey when they can be reached out for feedback. In some cases its instant, like an online software. In some cases, they might need time to use the product.
Earlier is better than later in most cases as people are highly likely to report how they feel interacting with your business / brand.
Here are some ways to start measuring it
- Ask people to fill an physical printed feedback sheet
- Use an online tool like Hotjar to ask for NPS on the right page in your website.
- Setup a webpage with an embedded Typeform NPS Survey or Google form. Then automate an email X days after you’ve shipped the product linking to the page.
Is NPS really that important?
If you’re concerned about long term sustainable growth for your business, this is very very important. Its important than other metrics like cost per acquisition, which often can increase and is outside your control. Whereas NPS is certainly in your control and can lead to lower cost per acquisition of your customers over a long term. And this translates to extremely higher profits and efficient operations.
How are you going to incorporate NPS in your business / service? Let me know in the comments below.