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Understanding the Power of Net Promoter Score (NPS) for Business Growth

by | Mar 28, 2024 | Business Growth, Google Business Profile

Alt text: A conceptual image of business growth with a man standing and looking at a bar graph comprising metallic cylinders of different heights symbolizing growth, some with potted plants. A blue upward arrow and line graph overlay the scene, with the words "Business Growth" prominently displayed on the left side of the image.

In today’s business world, making customers happy is super important. Net Promoter Score (NPS) helps businesses figure out how happy their customers are. Even business people like Warren Buffett think it’s really important too. He says, “Your business is only as strong as your customer satisfaction.”

So, what is NPS?

A senior man in a black suit and glasses sitting with crossed hands in a well-lit patio restaurant with wooden tables and chairs.

Fred Reichheld – Creator of Net Promotor Score

In its simplest terms; NPS is a way to measure how loyal customers are. It was created by a leading business strategist Fred Reichheld. He sorts customers into three groups:

  • Promoters (people who really like the business),
  • Passives (people who are okay with it), and
  • Detractors (people who aren’t happy).

By the way, it’s easy to misuse the NPS.  So we suggest reading this article on Harvard Business Review.  It combines the power of NPS with the Earn Growth metric.

Why does NPS matter?

NPS helps businesses grow. Jeff Bezos says, “We see our customers as invited guests to a party, and we are the hosts. It’s our job every day to make every important aspect of the customer experience a little bit better.” NPS helps businesses do that. When businesses have high NPS scores, they usually make more money.

How you can maximize using NPS:

Here’s how we use NPS to make our business better. First, we ask our customers a simple question: “How likely are you to recommend our product/service to a friend or colleague?” This lets us quickly know if we are delivering on our desire for first-class customer experiences, or not..

If customers give us low scores, showing they’re not happy, we act fast to fix things.

When customers give us high scores, we use that positivity to our advantage. We ask them to leave reviews to help spread the word about our business.  

The full impact of NPS:

Using NPS can make a big difference for businesses. Forbes says businesses that use NPS grow by 10-15% on average. Pretty cool, right?

Steve Jobs said, “You’ve got to start with the customer experience and work backward to the technology.” NPS helps us do just that. It’s all about making customers happy.

When businesses use NPS, it can change the whole culture. Entrepreneur.com says it can make a business more focused on customers, from making products to selling them.

So, if you want your business to grow and make customers happy, try out Net Promoter Score. It could be just what you need!

We have built the NPS survey into MarketDrive.  In fact, we think this is so important, that it’s even part of the MarketDirve Lite version.  Imagine the power and impact on your business when you follow up with your customers asking them “How likely are you to recommend us?”  You’ll get a solid picture of how your team is doing.  Then, you can follow up accordingly.