Why Are Promoters So Important?

Why are promoters so important?

Posted by Alexandra Kilpatrick on Mar 26, 2018 11:33:29 AM
Alexandra Kilpatrick

It’s not enough to simply have more Promoters than Detractors. You need to have enough Promoters out there recommending your business to offset the effect of Detractors telling everyone they know to stay away from your business.

“By limiting the Promoter designation to only the most enthusiastic customers, we avoided the ‘grade inflation’ that often infects traditional customer-satisfaction assessments, in which someone a molecule north of neutral is considered ‘satisfied,’” Frederick F. Reichheld said in his 2003 Harvard Business Review study.

“And not only did clustering customers into three categories—Promoters, the passively satisfied and Detractors—turn out to provide the simplest, most intuitive, and best predictor of customer behavior; it also made sense to frontline managers, who could relate to the goal of increasing the number of Promoters and reducing the number of Detractors more readily than increasing the mean of their satisfaction index by one standard deviation.”

Moreover, NPS is one of the strongest measurements of customer loyalty, and research shows that this customer loyalty is one of the greatest indicators of profitability, because it shows whether or not you have enough happy customers willing to refer new customers to your business.

And Promoters can have a huge impact on your business.

"We found that compared to Detractors, Promoters are more than five times as likely to repurchase from companies, more than seven times as likely to forgive companies if they make a mistake, and almost nine times as likely to try new offerings from companies,” A Temkin Group report, Economics of Net Promoter, 2016, says. “Our research also shows that Promoters recommend a company to an average of 3.5 people."

Consider this example of a customer experience review one of our clients received recently from a Promoter:

“I have seen this doctor for more than a decade and have been totally happy with her and her staff the entire time. I have recommended her to many of my friends and I know that at least three of them now routinely see her.”

This customer is not just raving about their outstanding experience with the doctor and staff in the review but also recommending the doctor to their friends, who are now regular customers.

High performing reputation locationsor locations with a high NPS—have about twice as many call and click to call/web inquiries and leads per month than low performing reputation locations—or locations with a low NPS.

Discover your own business’ NPS and contact xAmplifier today!

Download our white paper on NPS here!

 

Topics: NPS

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