Hello, Founders! Happy Easter greetings to you. Trust sales have been shooting up charts and goals are being smashed.
As you know, an important factor in business that ensures continuity is funds and ultimately making profit which stems from increasing revenue from an increasing/ stable customer base.
Having customers to buy your products is highly essential as that is the major option for increasing or stabilize your revenue. It is evident that customers keep you in business.
A less expensive way to continue to have customers that buy your product is through retention and referrals.
Old customers who are satisfied with your services would likely come back to patronize you and also refer their friends to purchase from you.
It is, therefore, important to cherish, monitor and continue to evaluate your performance over time to keep this sales channel continuously active.
A simple method you can adopt is called NPS, The Net Promoter Survey.
The NPS is a simple tool designed to measure what your customers think about your brand.
You can easily predict what percentage of your customers will rate your business poor, likely refer your product to others or that are indifferent.
It is sectioned into Detractors, Passives and Promoters.
The Promoters are your target. As an entrepreneur that is passionate about remaining in business, your goal should be on increasing your promoters.
To identify the different categories, a survey has to be carried out asking your customers to rate your business on a scale of 1 to 10.
This sounds vulnerable and you are going to be at the mercy of unkind customers and reviews but it’s for a greater good.
You have to always brace yourself for criticism that drives growth and improvement.
In the survey, customers will be asked to rate the business on a scale of 1 to 10.
Group 0 to 6: These are your detractors. They are not going to continuously patronize your business neither will they refer you.
Group 7 to 8: These are your diplomats. They are definitely not referring anyone nor propagating your quality service.
They enjoy your services but that’s it! Nothing personal.
Group 9 to 10: These are your promoters. I think family and friends might be more in this section for young entrepreneurs.
They believe in your product and would make sure somebody patronises your services.
At the end of the survey, your NPS will be the difference between your promoters and detractors.
Your result can help you to understand what your customers think about your business and the future of your sales.
Positive NPS usually indicates the growth of a company and potentials of future revenue flow.
To improve your NPS, increase customer interaction, discuss with your employees on the need for value-rendering as they interface more with customers. Finally, aim at keeping your promoters satisfied by being consistent.
Although there are times that conservative promoters mistakenly pick outside of their zone, it is still your duty to improve quality to the point where they allocate the highest score possible to you.
I hope you have learnt some lessons today, keep building!