Let’s talk Net Promoter Score (NPS) for a minute.
Because this could be the key to a (more) profitable business.
Let me start from the beginning.
One of my clients has been running a voice of the customer and NPS survey for the past six months and they noticed a bunch of customers that had a 20-point improvement on an already impressive NPS score.
I made it my mission to figure out how they did it.
When we dug deeper into the numbers, we found that customers who had three products or more had a 20-point higher NPS.
Let that sink in for a moment. These customers were significantly more likely to recommend this business than the ‘average customer’.
Isn’t the logical conclusion here that the higher the NPS, the more products you sell to a customer, which in return increases your profitability?
Or does that mean that the more products a customer buys, the higher the NPS?
Does being a promoter drive you to get more products or does having more products causes you to be a promoter?
I had to find out. I found this report from Bain and Co (you know THE team that literally wrote the book on NPS). And they found the same results in the banking industry. Customers who are promoters were far more likely than detractors to buy their next product from their primary bank.
What does that mean for you?
Well, you want to look at what’s driving your customer’s purchase behaviour.
That means identifying a look-a-like segment of the customers that have three or more products, and then creating offers you can upsell and cross-sell to this segment.
This will drive increased lifetime value and increased profit.
If you want to learn more about how to increase your company’s profit, download the free Market Fit 3R’s Framework here.