THE BENEFITS OF TRACKING YOUR NET PROMOTER SCORE

At Optimum Employer Solutions, we utilize Net Promoter Score (NPS) surveys to ensure we are driving a high level of client satisfaction and gathering valuable feedback directly from our clients. NPS is a critical and instrumental aspect of our business. Here are some of the benefits:

1. Simple and Intuitive

At its core, the NPS is straightforward. Clients are asked a single question: “On a scale from 0 to 10, how likely are you to recommend our company/product/service to a friend or colleague?” then a follow up question, “How can we improve your score?” This simplicity allows for easy interpretation and clear implementation. Unlike more complex surveys that may require extensive analysis, NPS provides a precise snapshot of client sentiment.

2. Direct Correlation with Growth

One of the standout benefits of NPS is its strong correlation with business growth. Research has shown that companies with higher NPS scores consistently experience better financial performance. The score categorizes clients into promoters (score of 9-10), passives (score of 7-8), and detractors (score of 0-6). This delineation motivates companies to focus on increasing the number of promoters and reducing the detractors. There are two major by-products of a high NPS score: first, it helps increase client retention and second, it creates evangelists out of clients. Organizations with high NPS ratings consistently receive more client referrals and often sales as a result. Both factors typically translate into higher revenue and market share.

3. Actionable Insights

NPS doesn’t simply indicate client satisfaction; it also pinpoints actionable areas for improvement. When you follow up with open-ended questions or detailed surveys, you can gather specific feedback on why clients gave their score. This feedback is invaluable for identifying areas where your business excels or needs enhancement, enabling targeted actions to improve client experience. A time-tested best practice is executive calls from leadership to clients who scored 8 or lower. These executive calls provide an opportunity to solicit deeper feedback; to genuinely thank the client and acknowledge their constructive input; to add that human touch and create a positive experience; to educate and communicate where the client may misunderstand a system or process; and to begin the process of rebuilding and mending any damaged relationships.

4. Client-Centric Culture

Implementing NPS can foster a client-centric culture within your organization. Since the metric is centered around client advocacy, it encourages employees to prioritize the client experience. This shift in focus can lead to enhanced client service, more personalized interactions, and a commitment to continuous improvement. When employees see the direct impact of their efforts on the NPS, it can drive motivation and engagement. One best practice is to share your NPS with the entire company in real time. As scores fluctuate, KPI boards and notification emails can give your staff a measurement of how they are doing, coupled with critical feedback directly from the client. This allows service efforts to close in on gaps as a result of direct feedback from the clients!

5. Early Warning System

Similar to a “check engine” light, the NPS serves as an early warning system for potential issues. A sudden drop in your score can alert you to underlying problems before they escalate into more significant challenges. By monitoring trends in your NPS, you can proactively address issues, mitigate risks, and implement improvements to prevent client churn. Tracking your NPS as a YTD number and a QTD number can help you detect underlying issues and allow the entire management team to attack these issues. The predictive nature of the NPS does not only apply to negative trends though; on the flipside, high NPS scores often (rightly so) lead to optimistic forecasting and external confidence.

6. Implementation

Companies collect NPS in a variety of ways. Collection can be performed through survey platforms like SurveyMonkey and managed internally, or collection can be entirely outsourced to third party firms/software specialized for NPS. In terms of frequency, some conduct surveys once per year from all clients. Others survey a client sample each quarter or month until the entire client base has participated. I believe in a quarterly survey that tracks YTD performance and presents the score quarter by quarter as a more comprehensive approach. Clients are only solicited for feedback once per year in the particular quarter they receive the survey. By surveying clients every quarter, you receive a more holistic, year-round picture of the client experience. Quarterly surveys help to incorporate client sentiment across different seasons within the business or industry as a whole. For example, if clients are only surveyed annually in a particular month notorious for being high-stress / overloaded / chaotic – that might negatively flavor the company NPS. Conversely, if the annual survey is sent in a month characterized by positive emotions, that could impact the NPS in the other direction. The goal of the NPS is to receive real information above all else. Manufactured, manipulated information might look pleasant in the short-term, but those companies inadvertently cheat themselves of the NPS’ greatest benefits in the long run.

7. NPS vs. eNPS

Another best practice is to not only survey your clients but also your staff. The same type of question is used for eNPS (Employee Net Promoter Score): “How likely are you to recommend the company as a place to work to a friend or colleague?” One interesting observation is that the eNPS tends to mirror and stay in concert with the client NPS over long periods of time. A company committed to taking care of its customers generally attracts employees with positive attitudes who feel a sense of purpose and accomplishment in serving others. Additionally, high levels of employee satisfaction can often translate into high levels of client satisfaction and all of the benefits that come with it! Happy employees foster happy customers.

The Net Promoter Score is more than just a number; it’s a strategic tool that provides numerous benefits to organizations striving for growth and excellence. Its simplicity, actionable insights, and correlation with business success make it an invaluable asset in the quest to understand and enhance client satisfaction. By leveraging NPS effectively, businesses can foster a client-centric culture, anticipate potential issues, and ultimately drive long-term success.