Our Net Promoter Score is trending down right now. We have fewer raving fans than we’d like.

Our Net Promoter Score has consistently been the most significant leading indicator of our profitability. We strive to make happy clients who go out in the world and tell their friends and family about us.

When that number goes down, like it is right now, we can expect declining revenue and profits. That is causing me some anxiety. We’ve got to turn that indicator around.

This is where the situation gets challenging. In my experience, key indicators are great when they’re going up. For instance, when revenue is climbing, no one is particularly concerned about digging in and figuring out who gets the credit. Revenue goes up, and all is right with the world. We should probably be more curious about who/what is causing the upward swing, but we’re not. We’re just happy!

When a key indicator goes down, the situation is more challenging. We NEED to turn that number around. We immediately dig in to find the source of the problem so we can take corrective action.

It’s the digging in that gets tricky. Figuring out what’s moving an indicator isn’t always straightforward.

How We Crunch the Numbers

We calculate our Net Promoter Score by pulling all of the data for all of our clients and averaging it together. We present the data on a trailing 12-month graph and use all of the client data from the past 12 months for each data point on the graph. We include every client survey score from the past 12 months. That makes a great deal of sense for calculating the overall score.

Drilling down is much harder. We have 11 attorneys. Each attorney has handled a different number of cases over any period. Some attorneys have a higher score and may be trending downward but still have a score much higher than some other attorneys. Some attorneys have minimal data, having not closed that many files in a particular period (we’re looking at 90 days right now). It’s challenging.

From Data to Insight

Eventually, we’ll figure out the source of this decline. We’ll take action that will likely involve counseling employees and reallocating work. We’ll figure out where to act once we get a better fix on the data. We’re taking action as we speak.

I suppose I should be grateful that we even know we’re having a problem. Years ago, we didn’t have a clue about the connection between Net Promoter Score and profits. We didn’t have a clue about what our clients were thinking unless they called to complain. I’ll remember that while I’m making myself miserable looking at the data.

They say you don’t really learn how to manage your business until something goes wrong. That has been my experience. I don’t think I learned much of anything during the years when revenue and profits went up. Those years were easy, and I just assumed I was a genius. It was the years when the numbers went down that I started learning. One of the lessons I learned was to keep driving up the Net Promoter Score. I know what’s coming if I don’t fix it right now.

With our Net Promoter Score trending downward, we’re learning some new lessons. I’m confident that we’ll figure out the source of the problem and fix it. I just wish learning these lessons wasn’t always so complicated and difficult.