How Many Friends Do You Have And What Are They Saying About You?

by | Apr 5, 2021

I’ve talked about how some owners treat their business like a baby and how you need to be raising adults, not children. Your business needs to operate successfully without being dependent on you as the owner/parent.

Well, now I’ll speak to something else every parent (and business owner) wants…

They want their grown children to be “good” and to be “liked” — we want our kids to have friends because, as a parent, you can only do so much to help them grow. Children need others to help them grow too. It takes a village, right?

In a similar way, your business needs to have customers that support and refer your business to others. This leads me to another key driver of company value, your company’s customer satisfaction — how many friends does your business have?

And I’m not talking here about “social media friends,” I’m talking about real friends. Likes, followers, stars, thumbs-up and check-ins on social media are not real measures of friendship or customer satisfaction — you need real promoters of your business. That’s why globally, industries have come to accept the concept of the Net Promoter ScoreTM (NPS) as the definitive measure of customer satisfaction.

You can learn all you want about NPS on the web, so I’m not going to go into the details of the calculation here. The fundamentals are that, if you have a strong, positive NPS, customers are referring your business to others, and they are more likely to continue purchasing from you because they like your business and are promoting it. In fact, there is statistical evidence of a direct link between your business’s NPS score and the future value growth of your business.

My clients see the most success when they are 1) growing a valuable business that can successfully function without them in the role of the parent and 2) knowing their business has true friends that support them in their growth.

Comment below or contact me directly to talk more about NPS and value growth.