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Want to generate more revenue and more referrals? Stop asking your customers this question: “On a scale of 0 to 10, how likely are you to recommend our business to a friend or colleague?”
You’ve probably seen (or used!) this Net Promoter Score question before. And it has its place. You want more referrals… and the Net Promoter should tell you how many referrals you’re likely to get… right?
Well, not so fast. The question asks if a customer is likely to recommend your brand… not that they have or even will. And when your organization places too much importance on this score, your team can easily “game” the question… making the score meaningless.
But, there is a way to ask this question in a way that truly indicates what your goals are: more revenue and more referrals. Watch the video to see how…
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Below is an Autogenerated Transcript
Now what you didn’t say, I want to call out, you did not ask, “How likely are you going to refer, or recommend the brand?” Yeah. Tell me about that. Well, the Net Promoter Score question has had, it has its role to play. Okay. There are a couple of problems with it. One is that you can bend over backward and spend a lot of money absolutely delighting your current customers so that they’re giving you nines and tens. Okay. But that doesn’t necessarily mean that they’re going to buy more from you. It says, what’s the likelihood? It doesn’t actually say, have you recommended anybody? So, you can end up putting a lot of effort and money into getting that score up. And you’re considering that a leading indicator of what you actually want, which is real referrals and recommendations or more business. Like in banking, they would call that more assets under management. More share of the portfolio to our company, not to other companies. Interesting. The question doesn’t ask any of that. So by contrast, for example, I know that people have created something called the Wallet Allocation Score, which is very different. It says, you know, basically, “What’s the likelihood that you’re going to bring us more of your business?” or actually, “Have you over the course of X period of time, increase the volume of doing business with us?” “What would it take for you to increase more business with us?” Now we’re talking about revenue and profitability and genuine customer loyalty. Not… okay. And the last problem with the NPS is obviously it’s been around for so long. One of the reasons it succeeded is because it’s so simple. People can understand. They don’t want to really study hard. So, let’s do the NPS score. But you know, people absolutely know how to game that. “If you like our service, give us a nine or a ten.” “Thank you for a nine or a ten.” “What do I need to do to get to nine or ten?” “I’ll do this for you if you’ll give a nine or ten to me.” And so you literally have evaporated the legitimacy of that. And yet dethroning it, that’s going to be a treat.
