Why net promoter score is a powerful business tool
At ABA our confidence in Net Promoter Score (NPS) can be narrowed down to a single factor – it drives sales growth for our retail clients.
NPS focusses on a critical question that customers and stakeholders can understand at a glance: ‘How likely, on a scale of 1-10, would you be to recommend brand X to a friend or colleague?’ From the answer, a customer can be classified into one of three categories:
Promoters – those scoring 9-10
Passives – those scoring 7 or 8
Detractors – those scoring 6 or under
Following this key question, customers are then asked to explain why they selected their score. Typically people are very happy to share how they feel just after an experience.
For retail clients, NPS is loved for its absolute clarity. A single mark out of 100 reveals precisely how they are performing. An explanation of the score equips them to take targeted action. This level of clarity means that stakeholders at all levels feel engaged and empowered to act.
And NPS will become even more important as consumer choice continues to snowball. A high NPS score means your customers are unlikely to switch; a low score means it’s time to act to secure their loyalty.