Is client retention important to your company’s success?

Net Promoter System℠ is based on the belief that every company’s customers can be divided into three categories. “Promoters” are loyal enthusiasts who keep buying from a company and urge their friends to do the same. “Passives” are satisfied but unenthusiastic customers who can be easily wooed by the competition. And “detractors” are unhappy customers trapped in a bad relationship. Customers can be categorized based on their answer to the ultimate question: “On a scale of 1 – 10 how likely are you to refer us to one of your friends or colleagues?”
The best way to gauge the efficiency of a company’s growth engine is to take the percentage of customers who are promoters and subtract the percentage who are detractors. This equation is how we calculate a Net Promoter Score for a company.

While easy to grasp, NPS metric represents a radical change in the way companies manage customer relationships and organize for growth. Rather than relying on notoriously ineffective customer satisfaction surveys, companies can use NPS to measure customer relationships as rigorously as they now measure profits.

A company’s Net Promoter Score correlates with revenue growth. Discussed at length in the book: The Ultimate Question: by Fred Reichheld, the Net Promoter approach has been adopted by several companies, including Philips, GE, Apple Retail, American Express, and Intuit. Reichheld believes that the best, most dependable and sustainable way to predict a company’s future profitability is to grow its NPS!  Grow the number of satisfied customers, reduce the number of detractors and watchyour profits grow.

If client retention is important to success of your company, then check out how NPS can help you grow your business and your profits!

Take a look at this info-graphic, to get a deeper understanding.