#marketing #solar #productdevelopment #netpromoter
Welcome back! Earlier we saw that for sales and marketing Net Promoter Score can boost sales, and enable solar customer targeting. But what about other stakeholders such as product teams, application engineering, or finance? Teams outside of commercial groups may ask: so what? What could NPS mean for our next product, and how does it affect a balance sheet? Here's how.
For solar and renewable energy solutions, persuading key internal stakeholders to the utility of Net Promoter Scoring is crucial. The score can inform future product development, and improve the business financial standing. NPS can help you to come prepared with objective, quantitative results to support decisionmaking in product development and budget discussions.
If I am in engineering or a product manager, why should I care about NPS? The answer lies in the open-ended, qualitative answers that follow the standard 0-10 “likely to recommend” question.
When customers answer about features that they like or don’t like – that’s gold for a product development team. One can group survey results by features mentioned by respondents -
or even by product they use - then create an NPS score for each group this way:
This analysis provides a way to see which products or features meet with the greatest satisfaction or dissatisfaction with customers.
Additionally, an NPS score from a survey of technical customer stakeholders could be useful to product or engineering teams. That way, technical teams hear the voice of technical customers in the field, providing hard metrics to combine with qualitative feedback. For application engineers, you can look at NPS on a project-by-project basis – which projects went well enough for the EPC company to recommend you again to others? Which didn’t, and why?
If I am a CFO, how does NPS help me? For one, look to different revenue numbers and support costs for Promoters, Neutrals, and Detractors. If you can attribute customer acquisition spend to each customer, then add that to the costs of customer support for each account. Most crucial: if any Detractors became Neutrals, or Neutrals became Promoters, then you can compare the marginal cost of improving them against to the any revenue after elevating their NPS. And you can develop a measure of how much revenue is possible with an increase in NPS, and marketing spend needed to achieve this.
Net Promoter Score can offer a method to quantify marketing results for a financial audience, especially if marketing spend is traceable to accounts or individual customers. While not a guarantee of increased revenue or lower costs, it can enable a marketing or sales team a metric for persuading finance teams.
Beyond impacting sales, marketing, and customer support, NPS has the potential to drive decisions for product and finance, improving the prospects of success for the whole business.
Jason Grillo is an independent marketing consultant living in Greater Boston. You can contact him at jason@terraluces.com.
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