8 of 8 people found the following review helpful:
5.0 out of 5 stars
Here is an open-source system whose "engine" can drive profitable growth, October 5, 2011
This review is from: The Ultimate Question 2.0 (Revised and Expanded Edition): How Net Promoter Companies Thrive in a Customer-Driven World (Hardcover)
This is a revised and expanded second edition of a book published in 2006. In it, Fred Reichheld skillfully develops several concepts in much greater depth. In most of his previous books and articles, he focuses his primary attention on how to build and then sustain trust between and among those who share a workforce. Trust is again an important theme in this latest book because, if customers do not have trust in a company, its people, and its products and services as well as in its values, they will have little (if anything) to do with it and will certainly not recommend it to others.
The eponymous book titles refer to a question of ultimate importance: 'On a zero-to-ten scale, how likely is it that you would recommend us (or this product/service/brand) to a family member, friend or colleague?' As Reichheld explains, the phrasing of that question is 'a shorthand wording of a more basic question, which is, [begin italics] Have we treated you right, in a manner that is worthy of your loyalty? [end italics] 'But the question really wasn''t [and isn't] the heart of things. After all, no company can expect to increase its growth or profitability merely by conducting surveys, however the question or questions might be phrased.'
With assistance from Markey, what Reichheld does is provide a cohesive, comprehensive, and cost-effective management system by which that has three central components: categorizing customers into one of three categories (i.e. Promoters, Passives, an Detractors) through a simply survey, creating an easy-to-understand score based on that categorization, and finally, 'framing progress and success in these terms, thereby motivating everyone in the organization to take the actions required to produce more promoters and fewer detractors.' In other words, on an on-going basis, use current scores and related feedback to drive improvements.
With regard to the scores themselves, Promoters are those who provide a rating of 9 or 10, Passives 7 or 8, and detractors 6 or less. For purposes of illustration, let's say 100 customers respond as follows: 35 Promoters, 45 Passives, and 20 Detractors. The net score is determined by subtracting the total number of Detractors (i.e. 20) from the total number of Promoters (i.e. 35) and that is 15. That is a baseline against which subsequent efforts to increase Promoters and decrease Detractors are measured. Reichheld calls it the Net Promoter Score (NPS) and so shall I.
In my opinion, with all due respect to the importance of the NPS metrics, the implications of the measurements are of far greater importance. Think of the measurements as a mirror, one that reflects multiple realities. Only by understanding those realities -- and how to respond to each effectively -- can appropriate change initiatives be initiated to achieve and then sustain a never-ending process of improvement. 'Flexible it may be, but without the following elements, NPS just won't work.' They are:
1. Companies must systematically categorize promoters and detractors in a continuous, timely, and accurate manner. I think it is also important to note when Promoters become Passives and when Detractors become Passives. Also, to understand WHY.
2. Companies must create closed-loop learning and improvement processes and build them into their daily operations. In other words, NPS is not ' and must never be viewed as ' a customer relations improvement initiative or even a program. It must become and then remain an [begin italics] organic [end italics] system.
3. CEOs and other leaders must treat creating more Promoters and fewer Detractors as mission critical. I'd say 'mission imperative.' As Peter Drucker once observed, 'Without customers, there is no business.'
Hundreds of the world's largest and most complex organizations have adopted NPS but I hasten to point out that it can also be of substantial value to almost any company, whatever its size and nature may be. In recent years, it has been my great pleasure as well as privilege to work closely with owner/CEOs of hundreds of companies whose annual sales are less than $20-million. I would recommend NPS to each without hesitation or qualification. As Reichheld explains, it is 'a business philosophy, a system of operational practices, and a leadership commitment, not just another way to measure customer satisfaction.'
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10 of 11 people found the following review helpful:
5.0 out of 5 stars
A Better Business World, September 20, 2011
This review is from: The Ultimate Question 2.0 (Revised and Expanded Edition): How Net Promoter Companies Thrive in a Customer-Driven World (Hardcover)
Fred Reichheld and Rob Markey have consistently created and promoted the best of business practices. By following the Golden Rule and treating others as one would wish to be treated, they have proven through use of the Net Promoter Score and the Net Promoter System, both clearly explained in The Ultimate Question 2.0, that doing what is right for your customers really works (i.e., happy customers result in happy profits!). Through their use of countless real business examples of both good profits and bad profits, they make it easy to understand how to build one's business into an organization that one can be proud of, and that generates good profits and growth. Anyone who is trying to find ways to build their business will profit (pun intended!) from reading and employing the methods described so clearly in this very valuable book. Help make the business world a better place for customers and businesses. Buy it! Read it! Use it!
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7 of 7 people found the following review helpful:
5.0 out of 5 stars
Definitely worth the time spent to learn about this game-changing system, September 28, 2011
This review is from: The Ultimate Question 2.0 (Revised and Expanded Edition): How Net Promoter Companies Thrive in a Customer-Driven World (Hardcover)
The Net Promoter score provides business leaders with the information necessary to find the answers to customer satisfaction, while still driving growth. This measurement tool gives companies the vital information they need to better understand their customers.
There is no doubt today's technology driven customer has demands not heard of twenty years ago, and this book accurately shows how only the companies who can keep up with, and meet these demands, will succeed. It comes down to what the priority or mission of your company is. Is it one that involves giving customers and employees a positive and memorable experience? If not you may want to take a look at the theories presented her. As shown, these ideals are concentric with those of some very big name successes such as Amazon and Costco.
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