Mr. Fred Reichheld says it best in his book the ULTIMATE QUESTION:
"Asking the ultimate question allows companies to track promoters and detractors, producing a clear measure of an organization's performance through its customers' eyes, its Net Promoter Score. Bain analysis shows that sustained value creators—companies that achieve long-term profitable growth—have Net Promoter Scores (NPS) two times higher than the average company. And NPS leaders outgrow their competitors in most industries—by an average of 2.5 times."
So if you want your business to GROW, then you need to know your Net Promoter Score.
We would like to share some highlights from The Ultimate Question 2.0 as summarized by Paul Marsden:
Winning Results with NPS
"The Net Promoter System is about driving change through a strategic prioritization and operational focus on customer loyalty – creating more promoters and fewer detractors – by applying the Golden Rule (treating customers as you’d want to be treated) – throughout the organization. Based on experience of NPS adopters, there are three keys to NPS success
- Embracing the goal of customer loyalty as a mission-critical priority at CEO and board level, and understanding the economic, inspirational and moral imperative that a focus on driving loyalty offers
- Hard-wiring NPS monitoring feedback into key decision processes and integrating it into operational priorities throughout the organization to create closed-loop learning and improvement. In other words, not treating it as a metric, or parallel program is critical to success
- Adopting NPS as solution for driving long-term customer-centric cultural change, rather than a short term program or initiative, and realizing the change must touch every part of the organization
Implementing a Net Promoter System
The Net Promoter System is a management approach to business through ‘good profits’ – ethical profits from enriching lives instead of ‘bad profits’ that exploit customers. It’s about building customer relationships worthy of loyalty by treating customers so well they become loyal promoters of your business. It’s about, in the words of Zappos’ Tony Hsieh, consistently WOWing customers so they come back for more and tell others. Put simply, it’s about happy customers talking. And for leaders, it’s a leadership tool for making happiness your business model, and joining a quiet revolution for building a legacy built on ‘good profits’. As an open-source adaptable and flexible system for generating good profits, many companies have adapted the NPS to their own needs and with their own labels (fast-food chain Chick-Fil-A calls it the Raving Fan Index), but successful implementations all share three key elements;
- Systematically categorizing customers into promoters and detractors to produce a net score that monitors the quality of customer relationships, and communicating this throughout the organization
- Creating ‘closed-loop’ learning and improvement processes to increase promoters and reduce detractors at an operational level. If your NPS score drops, investigate the source of bad business – and put it right
- Treating the creation of more promoters and fewer detractors as mission critical at board level. Developing relationships worth of loyalty is either a strategic priority or it isn’t. If it isn’t NPS is not for you.
...it is important to keep front of mind the purpose of the Net Promoter System – as a solution for creating a customer-centric organization that prioritizes customer loyalty with decisions that enrich lives, rather than diminish them."
Well said Paul, well said.