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Chapter from: "The Ultimate Question 2.0 (Revised and Expanded Edition): How Net Promoter Companies Thrive in a Customer-Driven World"
Published by: Harvard Business Publishing
Published in: 2011

Abstract

The notion that customer loyalty can be summarized and quantified in the response to one question (‘How likely is it that you would recommend us to a friend or colleague?’) can be threatening to market research departments, survey vendors, managers, and others both inside and outside your organization who have learned to play the game in the current system. In this chapter, world-renowned expert on loyalty economics Fred Reichheld and his Bain colleague Rob Markey summarize the progress the Net Promoter system has made since it first exploded onto the marketplace five years ago. They also explore the various changes and improvements this powerful system must undergo as it matures. Using examples from companies such as Apple Retail, JetBlue, and FranklinCovey, the chapter explains why companies must find ways to combat ‘survey fatigue’ as customer tolerance for feedback requests diminishes; they must tap the interest of investors who are likely to use NPS in their valuation processes; and they must develop better systems and analytics to understand customer economics and more reliably quantify the dollar value of customer loyalty. The chapter also confronts the question asked even by Net Promoter's most successful and enthusiastic veterans: Why is this so hard? Reichheld and Markey sum up the answer this way: ‘Most corporate systems were not built with customer delight in mind [They] operate on legacy systems that overwhelmingly emphasize profit-centric metrics.’ But if the goal of your company is to enrich the lives you touch, to build positive relationships that are worthy of loyalty, then adopting Net Promoter can help you measure what really matters. It can put your company on the path to greatness. This chapter was originally published as Chapter 10 of ‘The Ultimate Question 2.0 (Revised and Expanded Edition): How Net Promoter Companies Thrive in a Customer-Driven World.’ This chapter is excerpted from ‘The Ultimate Question 2.0 (Revised and Expanded Edition): How Net Promoter Companies Thrive in a Customer-Driven World'.

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Abstract

The notion that customer loyalty can be summarized and quantified in the response to one question (‘How likely is it that you would recommend us to a friend or colleague?’) can be threatening to market research departments, survey vendors, managers, and others both inside and outside your organization who have learned to play the game in the current system. In this chapter, world-renowned expert on loyalty economics Fred Reichheld and his Bain colleague Rob Markey summarize the progress the Net Promoter system has made since it first exploded onto the marketplace five years ago. They also explore the various changes and improvements this powerful system must undergo as it matures. Using examples from companies such as Apple Retail, JetBlue, and FranklinCovey, the chapter explains why companies must find ways to combat ‘survey fatigue’ as customer tolerance for feedback requests diminishes; they must tap the interest of investors who are likely to use NPS in their valuation processes; and they must develop better systems and analytics to understand customer economics and more reliably quantify the dollar value of customer loyalty. The chapter also confronts the question asked even by Net Promoter's most successful and enthusiastic veterans: Why is this so hard? Reichheld and Markey sum up the answer this way: ‘Most corporate systems were not built with customer delight in mind [They] operate on legacy systems that overwhelmingly emphasize profit-centric metrics.’ But if the goal of your company is to enrich the lives you touch, to build positive relationships that are worthy of loyalty, then adopting Net Promoter can help you measure what really matters. It can put your company on the path to greatness. This chapter was originally published as Chapter 10 of ‘The Ultimate Question 2.0 (Revised and Expanded Edition): How Net Promoter Companies Thrive in a Customer-Driven World.’ This chapter is excerpted from ‘The Ultimate Question 2.0 (Revised and Expanded Edition): How Net Promoter Companies Thrive in a Customer-Driven World'.

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