As we all know, client referrals are one of the best ways to grow your business.
The Oechsli Institute, a research-based coaching organization specializing in affluent sales and marketing, has developed the Net Promoter Score® (NPS), a metric you can use to determine how likely a client is to recommend you. You can harness this metric for insight on how to grow your business.
To get started, all you have to do is ask your clients one simple question: “How likely are you to recommend the firm/my services, etc.?” Ask clients to answer the question on a 1-10 scale.
Next, organize the responses into categories:
7-8 Passive Clients
Then, use this calculation to determine the NPS.
(Promoters-Detractors)/Respondents X 100
In their 2017 Affluent Consumer Research Report, the Institute surveyed 625 investors regarding their willingness to recommend their financial advisor. The study found that most clients would recommend their advisor. However, the real difference in referrals was between clients with a business-only relationship and those with a business-social relationship. In fact, clients with a business-social relationship were 32% more likely to make a recommendation.
Therefore, if you want to boost your NPS and develop a network of active promoters, focus on building a social relationship with clients. That doesn’t happen within the confines of your office either. So get out about and socialize, and you’re likely to see a real difference in results.
For more information, please read:
How to Measure Your Referability … and Massively Increase It | Wealth Management