word of mouth & nps

welcome to introspection ft. harsehaj! ⭐️ i’m harsehaj, an 18 y/o always up to something in social good x tech.

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onto today’s topic: word of mouth & nps 🗣️ 

there is a difference between someone liking a product/service, and liking it enough to tell their friends or family. the method used to calculate this likelihood quantitatively is called a customer/user’s net promoter score (nps).

i won’t give you an extensive lesson on how to calculate it, but essentially it implies the following about users’ ratings out of 10:

• 9-10: promoters → will most likely recommend to friends

• 7-8: passives → won’t do anything

• 0-6: detractors → will not recommend & possibly dissuade others 😟 

nps is then calculated by subtracting the % detractors from % promoters.

you’re probably wondering, what’s with the sudden business lesson? well, i went to a newly opened restaurant’s soft-opening for dinner today, and realized i only cared to write a review because it was a particularly bad experience. similarly, i’ve only ever felt inclined to write a positive review and tell others when i’ve had a really good experience. ⭐️ anything in the middle, i’m passive about sharing my thoughts on the experience — i just probably personally won’t be a returning customer.

optimizing for word of mouth is so important for businesses, because that is the number one source for loyal customers. especially for service-based businesses, ensuring a high promoter score is crucial — passive ratings don’t drive growth or consistency, and of course, detractors stunt it completely. 📉 

simply being complacent with a “rate your experience from 1-5” and an average 4.5 star rating isn’t enough. it needs to be good enough for others to tell their friends and family.

what’s a product/service you’ve told your friends about?

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