In the CX world, a promoter is a loyal customer willing to recommend a brand to friends and family. A large majority of referrals come from promoters, meaning they’re responsible for bringing in new customers and more revenue. Additionally, most promoters think they’re getting good value for their money, so they’re less price-sensitive than non-promoters. And they have longer relationships with companies, leading to a higher customer lifetime value (CLV). In a nutshell, promoters are great for the bottom line.
Promoters are identified by their Net Promoter Scores® (NPS®). Net Promoter Scores are derived by surveying customers and asking them one critical question: “How likely is it that you would recommend [brand] to a friend or colleague?” Customers respond using a 10-point scale, with 10 being extremely likely. Customers who respond with a 9 or 10 are classified as “Promoters.”
NPS is a proven predictor of growth and companies with high percentages of promoters should, on average, perform better over time. The propensity to evangelize brands is particularly important, as a referral from a trusted source is one of the most effective methods of marketing.
It’s clear that businesses should strive to turn more of their customers, the “Detractors” and “Passives,” into loyal enthusiasts. One effective way to do so is to focus on delivering impeccable CX and optimizing the customer journey. Most businesses now compete primarily on CX and those that are able to consistently provide exceptional experiences will win the battle for promoters. Organizations that recognize this are investing in customer experience programs and holistic VOC with positive results.
