A company's Net Promoter Score (NPS) is a measure of customer satisfaction and loyalty. It is based on your customer's answer to a single simple question:
"How likely is it that you would recommend us to a friend or colleague?"
Answers to this question segment your customers into detractors, passives and promoters. Subtracting the % of detractors from % of promoters results in your NPS.
According to the creators of the NPS:
"In most industries, this one simple statistic explained much of the variation in relative growth rates; that is, companies with a better ratio of Promoters to Detractors tend to grow more rapidly than competitors."
I got to thinking about NPS this past week because I was forwarded a copy of an email thread between one of our clients and a CIO colleague of theirs who is in the process of transitioning onto SAP.
Our client's friend, the head of IT of a major sportswear manufacturer, starts off the thread with this inquiry:
"…We have hit a point in order processing (…blueprinting…) where the business wants a very simple easy to us web tool for order entry, and maintenance along with getting access to some basic other customer data (credit limits, open orders, past invoices, etc). They want this tool to be available for two groups of users:
- Our outside sales reps (so they could access and enter info for all their assigned customers)
- Our customers (so they could do web self service)
I remember when I met with you 9 months ago, that you had implemented a web based tool that sounded like it did the above, but from my notes I didn’t document who you were using for this software as a service. Can you let me know what companies you looked at for web based portal
access to your SAP, who you selected and why."
This is our client's response:
"…Their name is b2b2dot0…They are a perfect fit for what you want to do. Let me know when you want to connect… and I can answer all of your questions on our selection process and why we went with them. Then if you are interested I can set up an introduction to them. I can guarantee you that you won’t be disappointed, these guys made me a hero with our new CEO."
Hero. I like that concept. We're not just providing a cost effective, functionally rich and reliable technical solution to a real business problem. We're creating heros.
Now that is a Net Promoter!