𝐁𝐞𝐲𝐨𝐧𝐝 𝐀𝐔𝐌 – 𝐓𝐡𝐞 𝐎𝐧𝐞 𝐍𝐮𝐦𝐛𝐞𝐫 𝐓𝐡𝐚𝐭 𝐓𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦𝐬 𝐘𝐨𝐮𝐫 𝐏𝐫𝐚𝐜𝐭𝐢𝐜𝐞: 𝐓𝐡𝐞 𝐍𝐞𝐭 𝐏𝐫𝐨𝐦𝐨𝐭𝐞𝐫 𝐒𝐜𝐨𝐫𝐞 | FPSB India

Introduction to the Webinar on Net Promoter Score

Welcome and Overview

• Himani Sharma, Senior Brand Marketing Manager at FPSB India, welcomes participants to the webinar titled "Be the One Number that Transforms Your Practice: The Net Promoter Score."

• Emphasizes that while success is often measured through Assets Under Management (AUM), long-term growth increasingly relies on client trust, experience, and advocacy.

• The session aims to explore why Net Promoter Score (NPS) is a critical metric that reflects the strength and sustainability of financial practices beyond AUM.

Introduction of Guest Speaker

• Avneet Aurora, a CA professional with over 15 years in wealth management, is introduced as a guest speaker.

• Avneet has worked with ICICI Wealth and Navama Wealth before embarking on her entrepreneurial journey by founding two companies focused on financial education and personalized wealth management services.

Housekeeping Rules for the Session

Interaction Guidelines

• Participants are informed that questions will be taken towards the end of the session.

• Attendees are encouraged to post their questions in the Q&A box for discussion later.

Importance of Looking Beyond AUM

Growth Metrics Discussion

• Avneet begins by sharing insights into looking beyond AUM as a growth metric for financial practices.

• She shares a story about Rajesh, who runs his own transportation company, illustrating how customer relationships can lead to business growth.

Building Client Relationships

Case Study: Rajesh's Experience

• Rajesh follows all protocols when picking up customers and ensures safety during rides while trying to build rapport with them.

• After providing excellent service, he encourages clients to reach out whenever they need transportation services again or refer him to others.

Referral Growth Through Client Satisfaction

Expanding Client Base via Referrals

• Over time, Rajesh builds strong relationships with clients who begin referring him to friends and colleagues due to their satisfaction with his service.

• This leads Rajesh to gain new clients through these referrals as he continues delivering quality service consistently.

Challenges in Client Retention

Reality Check in Business Relationships

• Despite efforts in building good relationships, some clients remain unresponsive or choose competitors over time.

• Avneet highlights that references and client acquisition tools are crucial metrics for growth within investment advisory businesses.

Understanding Customer Happiness and NPS

The Importance of Happy Customers

• References for business growth are primarily provided by happy customers, as unhappy customers are unlikely to advocate for a business.

• Understanding what makes customers happy or unhappy is crucial; feedback helps identify strengths and weaknesses in service delivery.

Methods for Gathering Customer Feedback

• Three common methods to gather customer insights include random conversations, which help interpret customer satisfaction levels.

• Gut feelings often mislead businesses regarding customer satisfaction; relying on structured feedback can provide clearer insights.

Systematic Approaches to Measuring Satisfaction

• A systematic approach involves regular measurement and data-driven insights to understand client advocacy and references effectively.

• The Net Promoter Score (NPS) is a key metric used to gauge whether clients will recommend services, indicating overall satisfaction.

Understanding the Net Promoter Score (NPS)

• NPS measures how likely clients are to promote a business based on their experiences, providing valuable insight into customer loyalty.

• Developed in the early 2000s by Bain & Company, NPS simplifies understanding client experiences without complex analytics.

Adoption of NPS Across Industries

• Many Fortune 500 companies utilize NPS as a critical metric for driving customer-centric growth across various sectors.

• Companies set targets not only for revenue but also focus on improving their NPS scores based on current performance metrics.

Personal Experience with NPS Implementation

• The speaker shares personal experience using NPS within a learning and development team to assess program impact on employee engagement.

• Organizations use NPS not just from the client's perspective but also from an employee's viewpoint to enhance overall workplace satisfaction.

Calculating the Net Promoter Score

• To calculate NPS, subtract the percentage of detractors from promoters using the formula: NPS = %Promoters - %Detractors.

• This straightforward calculation provides actionable insights into customer loyalty and potential areas for improvement.

How Does the Recommendation Process Work?

Overview of the Recommendation Survey

• The main question in the survey is about how likely clients are to recommend your services, rated on a scale from 1 to 10.

• Clients provide ratings that can lead to follow-up questions regarding their reasons for recommending or not recommending your services.

Categorizing Client Feedback

• Based on client ratings, they can be categorized into three groups: Promoters (9-10), Passives (7-8), and Detractors (0-6). Promoters are loyal clients who actively refer others.

• Detractors are unhappy clients needing immediate attention, while Passives are satisfied but not loyal; they may switch if better options arise.

Calculating Net Promoter Score (NPS)

• To calculate NPS, determine the percentage of Promoters and Detractors from a sample size (e.g., 100 clients) and use the formula: %Promoters - %Detractors. Passives are not included in this calculation.

• An example scenario shows that if you have 80% Promoters, 10% Passives, and 10% Detractors, your NPS would be +70, indicating excellent performance.

Interpreting Different NPS Scores

• A medium score of +50 indicates good performance but suggests that nearly one-third of clients are neutral (Passives), which could signal potential issues with loyalty.

• A negative NPS score (-20) indicates significant dissatisfaction among clients and highlights areas needing improvement urgently. Understanding why scores fluctuate is crucial for business strategy.

Analyzing Client Feedback for Improvement

• Follow-up questions after the initial rating help identify strengths and weaknesses within your service offerings based on client feedback from both Promoters and Detractors. This analysis reveals blind spots in service delivery that may need addressing for overall improvement.

Why Does NPS Matter for You?

Understanding the Importance of NPS

• Identifying promoters is crucial; knowing who they are allows you to seek references with a high probability of success.

• NPS helps reveal service gaps and benchmark loyalty, enabling tracking of improvements over time through qualitative annual targets.

• Continuous improvement is essential; focusing on customer service processes can provide clear insights into necessary enhancements.

Timing and Frequency of Measurement

• A common question arises about when to measure NPS; determining the right frequency (annually or quarterly) is vital for effective results.

• Post-onboarding surveys within the first three months can capture initial impressions, which are critical for understanding client perceptions.

How to Utilize Survey Results Effectively

Actions After Gathering Insights

• Simply obtaining scores and insights isn't enough; actionable steps must be taken based on survey results to drive improvement.

• For promoters, actions include thanking them personally and asking for specific referrals, leveraging their positive experiences as success stories.

Engaging with Passive Clients

• Engage neutral clients (passives) by understanding their satisfaction levels and working towards converting them into happy clients.

• Demonstrating value is key; long-term clients may take your services for granted, so it's important to highlight how you help them achieve their goals.

Addressing Detractors: The Red Flags

Immediate Attention Required

• Detractors represent unhappy clients needing immediate follow-up; addressing their issues promptly is crucial for retention.

• Issues could be process-related or personal; resolving these concerns can potentially convert critics into advocates.

Designing Effective Surveys

• Surveys should start with a clear NPS question on a scale from 0 to 10 regarding recommendations to friends or family.

• Follow-up questions should explore reasons behind ratings, allowing deeper insights into areas needing improvement.

Improving Client Communication and Feedback Surveys

Key Considerations for Effective Surveys

• Emphasize the importance of keeping surveys short, simple, crisp, and concise to avoid overwhelming respondents. Long surveys can deter participation.

• Clearly define the objectives of the survey to ensure that questions are designed to extract meaningful insights from clients.

• A balance between open-ended and closed-ended questions is crucial; while open-ended questions provide depth, they complicate analysis due to subjective responses.

• Closed-ended questions yield easier-to-analyze data as they generate average numbers or one-sided answers, facilitating quicker insights.

• Implement feedback surveys systematically within organizational processes, utilizing tools like Google Forms or Excel for measurement integration.

Analyzing Survey Results

• After completing a survey, review results thoroughly to understand client perspectives and shared views effectively.

• Establish a routine practice of conducting these surveys annually or biannually as part of onboarding processes for continuous improvement.

Addressing Questions and Insights

• Engage with participants by addressing their queries in a Q&A format post-presentation to clarify any doubts regarding the discussed topics.

• Reflect on personal experiences that have shaped professional approaches; share tips based on NPS (Net Promoter Score) perspectives for better client engagement strategies.

Best Practices for Conducting NPS Surveys

• Utilize personalized emails with links rather than one-on-one sessions when sending out NPS surveys; this allows clients more freedom in providing honest feedback without pressure.

• Avoid standardized templates for survey design; tailor questions according to specific organizational objectives to gather relevant data effectively.

• The calculation of NPS is straightforward: subtract the percentage of detractors from promoters, making it manageable even in Excel formats.

By following these guidelines and practices outlined above, organizations can enhance their communication strategies with clients through effective feedback mechanisms.

Thoughts on Client Referrals and Building Trust

Understanding Client Behavior

• The speaker discusses the challenge of clients being happy but hesitant to give referrals, often preferring direct platforms or local advisors.

• A question arises about differentiating oneself in a competitive market, highlighting the underlying issues that prevent clients from engaging fully.

• It is suggested that feedback from clients may reveal their comfort levels and confidence in the services provided.

Analyzing Client Feedback

• The need for more data and insights is emphasized to understand why clients lack confidence in the value being offered.

• The importance of structured feedback forms is discussed as a way to gather honest client opinions post-session.

• Identifying areas for improvement based on client feedback can enhance service delivery and client satisfaction.

Bridging Presentation and Execution Gaps

• There’s a noted gap between presenting solutions to clients and executing those solutions effectively.

• Two perspectives are highlighted: knowledge-based (relevance of solutions provided) and soft skills (selling techniques).

• The necessity of solving specific client problems rather than just providing general information is stressed.

Enhancing Skills for Better Engagement

• Good knowledge alone isn't enough; effective execution requires additional skill sets, particularly in sales techniques.

• Both knowledge enhancement and skill development through practice are encouraged for better client connection.

Addressing Value Perception

• Discussion shifts to how fintech platforms manipulate expense ratios, affecting perceived value versus actual cost.

• A famous saying about price versus value is referenced, suggesting that if clients focus solely on price, they may overlook added value.

Conclusion of Insights Session

• The session wraps up with appreciation for shared insights on trust-building and enhancing client experiences beyond mere metrics like AUM (Assets Under Management).

• Participants are thanked for their engagement, with reminders about upcoming resources such as session recordings available online.

Thank You and Closing Remarks

Appreciation for Participation

• The speaker expresses gratitude to the FPSB India team, specifically mentioning Avneet and Himani, for their involvement in the session.

• Acknowledges the participants' presence and hopes that the session was beneficial, aiming to add value to their practices.

• Reiterates thanks to FPSB India for inviting them to engage in this conversation with all attendees.

• The speaker enjoyed the session and hopes that everyone listening found it enjoyable as well.

• Concludes with a heartfelt thank you, emphasizing appreciation for both the opportunity and participant engagement.