As a company selling to SMBs, if you’re not paying attention to your Net Promoter Score (NPS), then you’re missing on a critical lever to manage churn. Dan Slagen, CMO of Alignable, walked through case studies yesterday at the LSA’s SMB Cloud Summit, showing how some companies have figured out how to actively use NPS to drive lifetime value and in turn, to build a more sustainable revenue stream.
So what is NPS? It’s basically a score that helps you understand the strength of your brand perception. NPS = % of promoters – % of detractors. The higher your NPS, the stronger your brand perception among your target audience. Your promoters are those SMB customers who are actively promoting your business and acting as your evangelists, sharing positive stories about experiences with your brand at any level – and telling that story through word-of-mouth, social media and various other mediums.
