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What’s Your Net Promoter Score?

03/19/2010

Or maybe the question to be asked is – do you know what the Net Promoter score is?

Net Promoter® is both a loyalty metric and a discipline for using customer feedback to fuel profitable growth in your business. Developed by Satmetrix, Bain & Company, and Fred Reichheld, the concept was first popularized through Reichheld’s book The Ultimate Question. NPS has since been utilized by companies worldwide as method for measuring and improving customer loyalty.

It’s characterized by the ubiquitous Net Promoter question, “On a scale of 0 to 10, how likely is it that you would recommend our company to a friend or colleague?”

Net Promoter Scoring Scale

Bruce Ertmann, a marketing veteran in the automotive industry said, “Satisfaction scores are great, but what matters most is delivering on the promise.” Ertmann continues “The NPS can be an effective tool for measuring customer loyalty, but only for those organizations that have the basic business fundamentals of customer service fine-tuned. Too many companies refer to their use of this type of survey system as customer engagement, and those are typically the companies that falsely believe they are ‘in touch’ with their customers.”

I couldn’t agree more. Scoring is good. It’s one of the things that differentiates sports from games.

Today business is certainly not a game.

I learned the principle “Do what’s right for the customer and it will be right for the company” from the founder of Lands’ End. In the 1980’s Lands’ End defined the benchmarks of customer engagement and loyalty. Those principles resonate with me today…even if they are no longer in vogue at Lands’ End.

Next time the NPS comes up counter the discussion with the question, “Did we do what was right for the customer?”. The answer might be more telling than any score you’ll see from NPS.

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One Comment leave one →
  1. 04/03/2010 6:07 pm

    You have to express more your opinion to attract more readers, because just a video or plain text without any personal approach is not that valuable. But it is just form my point of view

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