Driving Growth with NPS: Tips for Fractional CFOs

Driving Growth with NPS: Tips for Fractional CFOs

In today's fast-paced business world, customer satisfaction has become a top priority for companies seeking to grow and stay ahead of their competitors. To achieve this goal, Fractional CFOs are often tasked with developing strategies that enhance customer experience and loyalty. One tool that has gained widespread adoption in recent years is the net promoter score (NPS). The NPS is a powerful metric that helps businesses improve their customer experience, promote customer satisfaction and loyalty, and drive long-term growth.

By leveraging this tool, organizations can create a customer-centric culture that results in higher customer retention rates.

In this article, we will explore what the net promoter score entails, how to measure it, why it is important for fractional CFO business and when to use this metric with your customers and within your work scope.

What is Net Promoter Score?

The Net Promoter Score (NPS) has transformed the business world tremendously and is now used as a standard measurement for measuring customer satisfaction. The NPS is a metric used by businesses to gauge the experience, satisfaction, and loyalty of their customers.

This score will provide your organization with knowledge of the general opinion of customers about your products and services. A high NPS is an indicator that the organization has customers that will likely be loyal and recommend it to others. A low NPS on the other hand may suggest that customers have a problem with the services rendered by the organization.

How to Measure Net Promoter Score

Feedback is great for organizations, especially for them to be aware of areas that need to be improved. Measuring NPS creates a great avenue for your organization to receive customers’ feedback.

The net promoter score is measured based on answers to questions like “On a scale of 1-10, how likely are you to recommend our organization or our products to your friends?" Several methods can be deployed to ask these questions including social media polls, follow-up emails and surveys.

Customers who pick between scores 0-6 are the detractors; they did not have an exciting or enjoyable experience with your organization and will likely discourage potential clients from partnering with you. Customers who pick between 7-8 are the passive or neutral customers who did not have a bad experience with your organization, nor did they have an exciting experience. The customers that select 9 or 10 are the promoters; they had a fantastic experience with your organization and have good reviews. They would likely spread the word about your organization and your products to other people.

The final NPS is calculated by subtracting the percentage of detractors from the percentage of promoters. For example, if the percentage of promoters is 70% and the percentage of detractors is 10%, then your NPS is 60% (70% - 10%). The result ranges from -100% to 100%

The net promoter score is more than just a score. It does not only provide value, but it also provides useful data and information.  Apart from the ranking, you can include blank notes so that the clients can explain the reasons behind whatever score they pick and customers can highlight areas that they need improvements on.

Why is NPS important for fractional CFO businesses?

At every point, fractional CFO businesses are always aiming for increased business growth. As a CFO, taking customer satisfaction as a top priority is key for your business growth because customers are one of the bedrocks of every organization. Here are two reasons why you should adopt the NPS measure in your organization:

NPS as a hack for fractional CFOs

When using this metric as a CFO, it changes from NPS to CPS (Client Promoter Score). The major importance of this metric is to create a connection with your clients. It is important as a CFO that you are aware of the needs and complaints of your customers.

NPS measure is a hack for fractional CFOs to track and make necessary improvements in their organization or products based on customer feedback. As a CFO, you can use NPS to create a better client-organization relationship and even retain more customers.

NPS as Employee Promoter Score

NPS does not apply only to clients and customers but can also be related to employees. As a CFO, you should not make the mistake of making the touchpoint or frequency between yourself and your employees low.

There are three perspectives to look at the employee promoter score from and they are; “How likely are you to recommend this business/organization to your friends and family?” “How likely are you to recommend your team to your colleagues and other professionals?” and “How likely are you to recommend your role to other professionals?”

To get this data, you want to make sure that the activity is fun and inviting. You can make fun videos and share gift cards just to make sure that your employees answer these questions willingly.

Just like the NPS, the employee promoter score ranges from -100% to 100%. Embracing this measuring standard will help you understand the baselines and know how to navigate from there. You will be able to identify those specific strategies, tactics, milestones and plans that you could execute in partnership with your clients to ensure that the employee promoter score increases.

Conclusion

In conclusion, it is evident that customer satisfaction is a crucial aspect of organizational growth. By adopting the net promoter score (NPS), businesses can effectively measure this factor and develop strategies to enhance customer loyalty and experience. As a Fractional CFO, it is essential to review this data regularly, preferably quarterly, to stay abreast of customers' opinions about the organization.

NPS offers a valuable opportunity to upscale the value of the customer relationship, both from a client and employee perspective. By leveraging this tool, Fractional CFOs can gain a better understanding of their standpoint and develop actionable plans to achieve their desired outcomes with their customers.