What is a net promoter score and how can you use it in wealth management marketing?

One of the key ways our firm starts its branding, messaging and marketing strategy with our clients is to actually get on the phone with 5-10 of the end clients, asking them about their valuable experience with this wealth management firm.  This process requires delicacy and extreme care, as we want to get out of the client what they value most about the experience and the firm.  It also does require the survey be done by an outside party, as clients will feel uncomfortable sharing their true insight with the actual CEO or internal employee of the firm. My own background as a wealth manager and investment professor allows me the credibility to speak with the end investor, putting them at ease to speak comfortably with me.

Through these live client and investor surveys, we crystalize exactly what sets this firm apart from the rest, and that gives us the roadmap for better articulating the firm message, addressing key challenges, and embracing opportunities!

But you may not have the benefit of an outside CMO [learn about our Outsourced CMO program] in order to go through this process. Furthermore, with over 1,000 accounts, you may want more than 5-10 client surveys to get a “lay of the land” to understand the overall feel within your client base.

It is during times like this that we highly recommend your firm take a Net Promoter Score survey from its client base.

Not only can the results of the survey help you understand what your clients value and want to voice, but it can also help you promote the score to your prospective clients.

In the bottom of this article, we have an actual NPS Survey you can purchase to send to your clients.  But first, let’s see how to utilize it.

Introduction to NPS

You’ve probably heard of the Net Promoter System (NPS) before. And if you haven’t, then you’ve likely at least answered an NPS survey - One little question asking you to rate how likely you are to recommend a company or service to a friend. That’s it. But here’s where it gets interesting. From the responses to that question, a business can start to determine the percentage of their clients who are very happy with them, and what opportunities are present for improvement. 

How is NPS measured?

Clients are asked to rate on a scale of 0 to 10 how likely they are to recommend your firm or services to a friend. Once a statistically significant number of responses are recorded, they’re categorized by score. Scores from 0 to 6 are Detractors. These clients are unsatisfied and unlikely to recommend your business. Scores in the 7 to 8 range are Passive -  likely satisfied, but not excited by their experience. Scores in the 9 to 10 range are known as your Promoters. These clients are happy with their experience and likely to recommend you to a friend or family member.