The Net Promoter Score® (NPS®) is a highly regarded metric that allows you to measure the likelihood of a client's recommending you. It’s measured by asking one unassuming question:
“How likely are you to recommend [service provider, business, etc.]?”
Respondents are asked to answer using a 1–10 scale and are then categorized into the following buckets:
- 0–6: Detractors
- 7–8: Passives
- 9–10: Promoters
Your NPS is then calculated by using this simple equation:
So, now that you know how to calculate your NPS, let’s talk about a way to impact it.
Massively Increasing Your NPS®
Because NPS is such a highly regarded metric, we decided to ask a similar question in our 2017 Affluent Consumer Research report. We surveyed 652 investors on their willingness to recommend their financial advisor. Our study found that the majority of affluent clients would probably recommend their advisor to someone. However, the difference between those with a business-only relationship and a business-social are significant—a 32.2 percent gap in the promoter category.
Thus, if you want to instantly raise your NPS and create more promoters, focus on building social relationships with your clients. What constitutes a “social relationship”? There is no clear-cut answer, but it doesn’t happen within the confines of your office. Think lunches, events and small gifts.
Go on a social campaign and watch your NPS rise. Most importantly, you should see a long-term impact on the number of unsolicited referrals you receive.
@StephenBoswell is president of The Oechsli Institute and author of Best Practices of Elite Advisors. @KevinANichols is the chief operating officer of The Oechsli Institute and author of The Indispensable LinkedIn Sales Guide for Financial Advisors.
