When Fred Reichheld wrote about the "One Number You Need to Grow" back in 2003, he said that creating more Promoters of your product, service or business is where growth begins. "That simple and that profound."
Detractors (score 0-6) Are unhappy customers who can damage your brand and impede growth through negative word-of-mouth.
Passives (score 7-8) Are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
Promoters (score 9-10) Are loyal enthusiasts who will keep buying and refer others, fueling growth.
NPS is the percentage of promoters minus the percentage of detractors. The higher the number, the healthier your company or product is.
Easy-to-understand graphics show you whether your product/service or idea is "in the green", literally. This is the first step towards understanding how to make your product great; great enough so that people that were critics before become your best Promoters now.
A customer that gives your product a score of 9 or 10 is not just saying he is satisfied with your product – he is stating he is willing to go the extra mile for you.
By using NPS to your advantage, it is possible to create sustainable growth for your product or company. Long-term growth, pushed forward by Promoters that spend more, more often than Detractors do.
And that type of growth will last a whole lot longer than paid advertising and acquisition will; that runs out when your money does. If you encompass NPS growth in your business, the larger your customer base becomes, the more users are turned Promoters and start recommending your business/product to others.
NPS puts you in a retention frame of mind
Keeping customers is just as important as acquiring them is. Flip the customer acquisition mindset on its head and look for ways to retain existing customers instead of only focusing on getting new ones.
Use NPS to group your users into Detractors, Passives and Promoters. Then, focus on putting these Promoters to work for you; it is far easier (not to mention cheaper) to win over a user through word of mouth that any aggressive marketing campaign will be.
A high NPS corresponds to positive word of mouth
Studies show that NPS is very closely connected to word of mouth. Understandably, this can end up being good OR bad; but it is entirely up to you to tap this well of available new customers that Promoters can brin in or sit and stare as customers leave your business, taking others with them.
Turn your attention to making the changes to your product that will increase your NPS and the exponential growth that genuine positive word of mouth will bring will follow shortly.