What Is NPS and How Can Your Business Use it?
Posted by Katie Zacharkiw

The most powerful marketing tool you have is the recommendations of your existing clients. That’s because people trust reviews from their friends more than they trust your marketing emails. It’s in the best interest of your business to ask your happiest clients to leave reviews of your business. But how do you know who your happiest clients are? Enter NPS scoring.

What is NPS?

NPS stands for Net Promoter Score. It’s a number between 0-10 based on the simple question “how likely are you to recommend this business to a friend?” with 10 meaning very likely and 0 meaning no way. Depending on the number your client chooses, they are sorted into one of three groups: 

  • Promoters: 9-10
  • Passives: 7-8
  • Detractors: 0-6

The first thing you’ll notice is that it’s far easier for a client to fall into the Detractor category than it is for them to be considered a Promoter. But this is a good thing in terms of NPS because it truly shows you who is the happiest with your business. 

Your overall NPS score is determined by subtracting the number of detractors from the number of promoters and dividing by the total number of respondents. But for the purposes of this post, I’ll be focusing on the individual scores. 

What does “Promoter” mean?

Someone who scores as a “Passive” doesn’t necessarily dislike your business; it just means that they probably won’t go out of their way to make a recommendation. When asking your clients for positive reviews and recommendations, you’ll want to focus your efforts only on the Promoters who are most likely to take real action on your behalf. 

What can you ask your Promoters to do?

Once you’ve identified your happiest clients, what should you ask them to do for you? Make sure you aren’t bombarding them with too many marketing tasks, but here are a few things you might do:

  • Leave a review on Yelp:
Almost everyone does online research before committing to a business, and that includes looking up online reviews. Ask your Promoters to leave positive reviews on sites like Yelp, Google or anywhere else your clients typically go to read testimonials.

  • Tag your business on social media:

Do you have a client who is particularly active on social media? Talk to them about tagging your business in some of their posts. You could even ask them to participate in an official photo shoot. They’ll love sharing photos of themselves, and it gives your business increased exposure. 

What about Passives and Detractors?

Passives might not be willing to go out of their way to recommend your business, but they’re content with your services and at low risk for churn. You might ask them to leave a review, but it’s likely to be less impactful than the review left by a Promoter. 

Detractors are clients who are unhappy enough to leave a low score and have the highest chance of leaving. You can use NPS to reduce churn by following up with those people who scored your business that low. What made them do so? You might need to simply ask. The issue may be something you can’t fix, but it also might be an easy change that could turn a Detractor into a Passive or maybe even a Promoter. 

use nps to reduce churn

NPS matters because it’s a huge indicator of future growth. A high score means clients love your business while a low score means you have some room to improve. Whatever your score is, take it very seriously and do your best to keep raising it higher. Because at the end of the day, happy clients mean more clients, and more clients mean more revenue.

Pike13 partners with TRP to offer our customers a way to track NPS and improve retention rates. Contact them today to find out who your happiest clients are and receive an exclusive discount for Pike13 customers. 

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