We were delighted this week to attend the GrowthHackers Conference in London, where many experts of the SEO, Digital Marketing and Growth Optimization industries where sharing tips and offering advice. While there, we caught up with Nilan Peiris, VP Growth at TransferWise (@nilanp), who spoke about how to grow your business by measuring and focusing on the optimization of one metric in particular: the Net Promoter Score (NPS).
So, what is Net Promoter Score (NPS)? It is a percentile scale of how likely it is your existing customers would recommend you to their friends. Promoters will do so, detractors will not do so. If promoters are greater than detractors you will grow. Most start-ups NPS score ranges from -50% to +50%.
The formula for calculating NPS is as follows:
(promoters – detractors) / total = nps
4 Principles of Product Driven Growth
1. Supply is the biggest scaling lever
2. Focus on improving the customer experience once you have supply
3. Build NPS once the product is working
5. Once product is growing, add marketing ($)
However, only focus on NPS once your product is working. If you have any questions or additional notes please feel free to add them in the comments box below.
By Joanna Brien