Private equity firms are active acquirers, and they love to look at the Net Promoter Score. It focuses around one question:
On a scale of 0-10 how likely are you to refer us to a friend or colleague?
Those that rank you 9-10 are your promoters
7-8 are your passives
0-6 are your detractors
In terms of what is a good Net Promoter Score, it varies widely by industry. Investment firms like Berkshire Money Management have an average of 58. Zero to 30 is good, 30-70 is great, and 70+ is said to be excellent. Ours happens to be 88. But, again, it varies widely by industry.
Acquirers like to know your Net Promoter Score because there is direct correlation to how your customers perceive you and what your growth will be. The higher your Net Promoter Score, the more likely it is that your client referrals will convert into new clients.
The key is to focus on the verbatim responses of your detractors, address your weaknesses, and track trends.