Managing cash-flow in today's world can be a difficult thing to do. It seems like there are a thousand products/platforms/services that everybody "needs" to be using and the budget for these tools is getting increasingly squeezed.
You might be using Buffer and BuzzSumo for social, Intercom and Groove for support, Attribution and KISSmetrics for analytics, LeadPages and VWO for marketing.
Pretty quickly, these must-have services add up to a huge monthly fee. Which raises the bar for any new service you might pick.
So it's understandable that you might be seriously wondering if an automated Net Promoter Score (NPS) platform is really worth adding to your budget.
For some services, like web hosting, it's a sunk cost... The cost of doing business. You can't sell online if you don't have a web presence.
For other services, like Buffer and BuzzSumo, you could do the work yourself, but paying for them frees up your time.
But unless you are manually running NPS campaigns already, using an automated net promoter score system might not free up any of your time.
But I want to show you why that kind of thinking is misguided.
Can NPS Generate Net-New Revenue?
Many people initially think that an automated Net Promoter Score system is part of the cost-center (where you are spending money). But I want to show you why when you implement NPS properly, you should think of it in your revenue-center (where you are making money) instead.
METHOD #1: If you read "How To Do Sales With NPS", you already know about The Survey Sales Technique. If you are not yet familiar with it, the idea is that you can leverage the NPS process in order to discover new revenue opportunities for your business. This one trick alone could revolutionize how you do business online entirely.
METHOD #2: If you read "The Zen Minimalist's Guide to Growing Your Business", then you know another trick that highly successful people like James Altucher and Hal Elrod have implemented. I find that this is the most under-used technique among NPS users, and also one of the most effective. Especially if you need to generate some new cash quickly (to meet a quarterly goal for example).
METHOD #3: If you read "Creating Deeper Relationships Through Surveys", then you know that you can use NPS in order to directly generate more positive reviews for your product or service. With Amazon and other retailers cracking down on fake reviews, authentic people leaving authentic reviews is more important than ever. And NPS is one of the best ways to get them.
METHOD #4: If you read "How to Turn Churn Into a Competitive Advantage", then you know that you can reduce churn (or even create negative churn) if you tightly integrate NPS into your business process. Churn is one of the biggest killers of SaaS businesses, so anything that reduces churn has a leverage effect for the rest of your business. Web hosting and regular surveying techniques will never usually measurably affect churn. NPS will.
But Don't Just Take My Word For It
Find out for yourself. At Promoter.io (where I serve as the Director of Marketing), we believe so much in the revenue generating power of NPS that they we've created the first-ever, NPS revenue calculator. The methodology of NPS has been proven time and again to statistically predict churn via detractors and passives and predict new revenue via promoters. It was time that it was measured.
From our experience sending millions of NPS surveys, we've seen that well-structured campaigns return an average of 10X or greater on the cost of using NPS software.
The new NPS calculator by Promoter, gives you a real-time perspective of new potential revenue and what's at risk.
The net promoter score calculator is part of the Promoter.io dashboard and offering. It works partially by taking your existing NPS score, calculating the percentage of promoters, passives and detractors by your ARPU (Average Revenue Per User/Customer) to give you a predictive look at your short-term and long-term revenue at risk and new potential revenue.
"We had originally considered reserving this calculator for paying customers only, but we decided in the end that free customers should have access to this premium feature so that they too can see the value added benefit of incorporating NPS into their business." - Promoter Cofounder/CEO, Chad Keck.
If you're currently measuring NPS and not sure if it's netting you a positive ROI, you may want to check out Promoter.io to get an idea of what you're missing.