As you near the end of a quarter or year, it is impactful to reflect on what we have done well, where we can improve, what more our customers need from us to be a value provider, and how they view our relationship. When we begin thinking about the economic headwinds coming our way, it becomes even more critical to determine our roadmap to growth. A few questions come to mind as we contemplate the best path forward:
As leaders, what is needed to sustain growth – what combination or percentage of new customer acquisition versus cross-selling in current clients is best? How does this translate into the expectations of our teams regarding quota, profitability goals, and other meaningful agreements you will create with your teams?
As a salesperson, what clients are most likely to have growth opportunities? Who values your partnership yet uses multiple suppliers for your products and services? Which of these clients might be on the way out the door, and how do you know?
Believe it or not, there is actually an easy way to uncover the answers to these questions and position yourself and your organization for great success. What is the key?
Conduct a Net Promoter Score® Survey!
So what is the Net Promoter Score Survey, and how is the score calculated if you are unfamiliar?
This simple yet powerful survey measures LOYALTY of your customer base, not merely satisfaction. The survey itself is just one question – “On a scale of 0 to 10, how likely are you to recommend our business to a friend or colleague?” NPS provides a score, ranging from −100% to 100%, that serves as a report card, grading your customer’s overall experience. Customers are segmented into three groups (promoters, passives, detractors) according to their numerical response to the 0–10 rating question.
Your NPS numerical score is the percentage of promoters minus the percentage of detractors. The Passives are not included in the formula (even though we still take actions – more on that later). So, to simplify, % of Promoters minus % of Detractors = Net Promoter Score. % of Passives does not figure into the equation. NPS = One simple, easy-to-understand number.
At Butler Street, we ask a handful of additional questions that provide even deeper insights:
Please share why you selected a rating of __.
Select your current relationship with [Company]: Exclusive, Preferred, One of few, One of many
How do you anticipate the volume of business in the next year with [Company} to compare to this past year?: Lower, About the same, Higher, Uncertain
As business continues to evolve, what is the most important thing [Company] could do to better partner with you?
[If 9 or 10] May [Company] use the feedback you provided as a testimonial? Yes, No
[If 9 or 10] Who at [Company] has gone above and beyond in your eyes and how?
The resulting information provides several key benefits and insights as you build your roadmap to growth.
Below are 3 ways Net Promoter will help you:
1. It gives direction for change and improvement
The most important component of this survey is it’s THEIR feedback, not YOURS. AND there are specific actions you can take for each score received. The owner of each account can now follow up directly with the contact, ask deeper questions, and either leverage more business where appropriate or find solutions to challenges in the relationship. Below is a snapshot of actions to consider for each score type.
2. It is your roadmap for growth
There is no better way to predict and formally plan for customer growth than using the results of the Net Promoter survey to build out your strategy for acquiring more market share from your current clients. With the group of customers that fall into the Promoter category, you can have an intentional strategy of proactively asking for referrals. Additionally, because your partnership is viewed with such value, cross-selling into new departments or locations should be a logical next step in building more, deeper relationships. Equally as important is the ability to prevent client defection before it happens from your Detractor category. Understanding and identifying risk factors allows you to demonstrate your focus on the root cause/root cure and exhibit personal accountability for your customer’s most important outcomes. And finally, those in the passive category are usually going to move up into the promoter category or fall into the detractor category. This is a pivotal moment and a tremendous opportunity to turn those passives into promoters with the right actions from your team.
3. It will improve individual results and improve company outcomes:
Individual
Protects income
Provides actionable insights
Potential exposure/risk reduction
Moving satisfied customer to loyal customers
Leverage loyal customer for referrals
Provides opportunities for expansion/cross-selling additional products/services
Helps you to achieve profitable growth
Company
Protects revenue and EBITDA
Provides a roadmap for higher client retention and growth
Identifies areas of opportunity with existing customers
Identifies training gaps
Builds stronger brand
Helps company to achieve profitable growth
If you want a more defined process and action plan for growing both your team and your company in the coming year, Butler Street can help! Conduct a Net Promoter Survey to start the year off with a growth mindset and defined roadmap.