Profitable growth ... it's the oxygen of a company. Any organization looking for a silver bullet to grow their company should look no further than the Net Promoter Score Survey (NPS). NPS provides an economical and concise metric for assessing how loyal a company’s customers are. Effectively, managing that measurement is the key to future growth.
NPS is both simple and compelling. Customers are asked, on a scale of 0 to 10, how likely they are to recommend a company to a friend. Respondents fall into one of three categories:
- Promoters (9 or 10) — customers who are highly likely to recommend a company or product
- Passives (7 or 8) — satisfied but unenthusiastic customers looking for a better deal
- Detractors (0 to 6) — people who are less likely to recommend a company or product
NPS is the percentage of promoters minus the percentage of detractors.
What is the best predictor of whether a customer is willing to recommend a product or service to a friend? Not customer satisfaction. NPS research shows it is difficult to discern a strong correlation between high customer satisfaction scores and outstanding revenue growth. As a matter of fact, research shows that upwards of 80 percent of customers who left their previous supplier described themselves as satisfied or very satisfied.
Research shows that there is a strong link between Net Promoter Score and revenue growth. In some industries, Net Promoter Score leaders grow two to three times their industry counterparts, making a strong case for profitable growth. So, what is the best way to drive profitable growth with NPS? Complete a financial segmentation of your existing customer base — at a minimum, revenue and contribution margin. Once you have your financial segmentation similar to the graphic below, then administer a NPS survey.
Take the results of the NPS survey and overlay them over the financial segments and voila—a picture is worth a thousand words. You now have the beginnings of a roadmap that shows you your biggest opportunities for price increases, reducing client risk and cross-selling.
If you weave Net Promoter Score into the fabric of your company, profitable growth will follow. It starts with the first survey and gaining actionable insights so that you may address your detractors, build off of your passives and leverage your promoters. How can such a simple question tell you so much? That is why it is known as the ultimate question.
Want to learn more about how Net Promoter Score can help grow your EBITDA. Visit our website www.aremyclientsloyal.com. It will tell you what you need to know to make an informed decision.
Sign up for NPS and start growing your company today!
Butler Street, a leading management consulting, training and research firm focused on client and talent development, has formed an alliance with Printing Impressions, America's most influential and widely read resource for the printing industry, to provide the de facto industry standard for measuring customer loyalty through its Best of Print & Digital Customer Survey.
If you are interested in understanding how Net Promoter Score and the Best of Print and Digital can help you grow your business, go to www.bestofprintanddigital.com
To take part in the 2017 Best of Print and Digital, go to www.bestofprintanddigital.com.
Click here to watch the Printing Impressions interview with Mike Jacoutot, founder of Butler Street, and Mark Subers, president of Printing, Packaging and Publishing at NAPCO Media, as they discuss the new partnership program.
Related story: Advancing Your Customer Relationships
With 194 percent year over year growth and a 90 Net Promoter Score, Butler Street has established itself as one of the leading consulting, training and research firms to the middle market. Before founding Butler Street, Mike Jacoutot spent the previous nine years as CEO of a national health care staffing company and most recently, a revenue cycle company. Jacoutot brings a strong combination of Lean Six Sigma process skills together with 34 years of sales and marketing experience.
Jacoutot is also the author of "Become the Only Choice." Now in its third printing, the book emphasizes a combination of consultative selling and process management techniques to enable salespeople to sell the way clients buy.
A four-time All-American collegiate wrestler, Jacoutot led The College of New Jersey wrestling team to two national championships. He culminated his senior year by winning the NCAA Division III Championship after three consecutive second place finishes. In March 2015, Jacoutot was inducted into the National Wrestling Coaches Hall of Fame. In October 2013, he was also inducted into The College of New Jersey Athletic Hall of Fame along with his 1981 NCAA Division III Championship Team. He holds a B.A. in Management.