More than a decade after it transformed the business world, NPS® still stands alone as the only customer experience that predicts business growth. The economics of Net Promoter® spring from differences in the behavior of Promoters, Passives, and Detractors. Use your focus on raising your Net Promoter Score® to drive improved business performance in a number of ways.

Higher Margins and Spend

Promoters are usually less price-sensitive than other customers because they believe they’re getting good value overall from your company. The opposite is true for Detractors, who are more price-sensitive. At the same time, Promoters buy more, more often, than Detractors do. They tend to consolidate more category purchases with their favorite brands. Promoters’ interest in new product offerings and brand extensions also exceeds that of Detractors or Passives.

Higher Retention Rate

Detractors generally defect at higher rates than Promoters, which means that they have shorter and less profitable relationships with your company. Rescue those Detractors — turn them into Promoters — and experience higher margins.

Greater Word of Mouth

What proportion of new customers selected your firm because of reputation or referral? The lifetime value of those new customers, including any savings in sales or marketing expense, comes from Promoters, who account for most referrals. On the other hand, Detractors are responsible for of negative word of mouth, so you can attribute the cost of this drag on growth to them.