Customer Reviews

The Ultimate Question 2.0 (Revised and Expanded Edition): How Net Promoter Companies Thrive in a Customer-Driven World

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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.'

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!

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.

Enlightening reading on how having the right mission and values can steer a company towards huge success. There are many aspects of this process, from asking the ultimate question, to determining the NPS of customers, and employees. But more importantly, all this information is useless if it does not cause your company to reassess its values, and its focus towards doing the right thing. This means doing away with what the book calls 'bad profits', which is profit earned from negative customer encounters. Ideally all profit needs to be 'good profit' which is a result of customers getting all their needs met, and relaying their experience to friend, family, and the general public.
This book should be a stopping point where any organization interested in customer loyalty begins to take the steps necessary to ensure they are doing all they can to satisfy customers so that all profit is good profit, because it will establish the right reputation in order to attract even more satisfied, and vocal customers.

A very simple concept but, its impact will be undeniable! Considering the simplicity of the question, this book holds a great deal of information. It does a remarkable job of expanding on this one point. That companies who refuse to take into account the happiness of their patrons could not only lose these relationships, but all the referred relationships that could have occurred if the customer had been satisfied.
In an energetic and informative way, this book lays out a doable plan to accurately determine which group your customers and members fall into. Using the ultimate question and the NPS, your organization can be armed with the knowledge it needs to determine the best steps to take to improve its relationships with both consumers and employees, creating a dynamic culture that will earn the loyalty of those it serves.

This book was great! It affirms how essential the value of the happiness of your customers, as well as that of your employees, is to your company's success. Both of these groups have the ability to represent your company either positively or negatively. It was a terrific look at the importance of gaining and maintaining the health of these relationships. Use this book as a starting point to building a company whose mission is about much more than profit.

On a scale of 1-10 I would rate this one about a 4. Not because net promoter score (NPS) is not a good idea, and not because this is not a well written logical book, but because you don't need to read a book to start doing it. How you stretch an article about using a one-question survey as a measure of customer satisfaction into a 300 page book is to provide lots of examples. When I look at the list of the companies using net promoter score surveys, I'm reminded of past management fads that everyone followed such as TQM, ABC, EVA, CRM, Lean, and others. In fact, if it has three letters (NPS) and it is being pitched by a consultant, beware. . . If it sounds too good to be true it probably is. What is different about NPS is that is easy, logical, and something you can do yourself. All these other three-letter programs require lots of time, $, and use of consultants.
Certainly a one-question survey is more likely to get a better response rate than some of the 30+ question surveys I get from hotels, airlines, and car companies. I think this a trend in the right direction. However, what you gain in increased responses, you lose in diagnostic data. The authors suggest asking a second or third question in addition to the overall 1-10 rating to determine why someone gave a high or low rating, but now you are starting to aggravate the customer more. I don't need to take my time to tell you how you screwed up - I just won't go back.
I would strongly recommend using net promoter score as one of the suite of metrics you use to assess customer or employee satisfaction. Combined with other metrics, this can be a simple and easy to use measure. However, to rely on NPS as your only measure of something as important as customer satisfaction is a major mistake. You would never find a company that relies on a single measure of financial performance to assess its health. Similarly, relying on a single measure of other aspects of performance is foolish. It would be nice if we could measure our health by just checking our blood pressure and that's it. It would also be nice to measure and predict customer loyalty with a single question survey. Sadly, life is not that simple, and measuring anything accurately usually requires a variety of different measures.
What I love about NPS is its simplicity. What makes it dangerous is its simplicity. Management understands it and it is often too tempting to use this as the only measure of customer or employee satisfaction. If you need ammunition to sell executives in your company on using NPS, this book contains plenty of stories from top-name companies and you will probably find it useful. The book is logical, easy to follow and presents some compelling evidence on NPS.

The use of this simple question could have a far reaching impact on the direction your organization is heading in. It is a reminder of the very basic premise that satisfied customers not only bring their business back again and again, but also the business of those who ask for their recommendation. On the flip side, unsatisfied customers can cost money, as well as damage a company's name in the community, among other detriments.
This book shows that with use of the ultimate question, and the resulting NPS you can determine which of your customers falls into which category. No matter the size of the business, the fundamental principles of customer service, and treating others the way you want to be treated will still hold true, and this book was a solid reminder of these principles.

What a simple solution to a complex problem. This book cuts through all the unnecessary questions and surveys to one simple question, which is of course a huge time saver. The results of this question, called the Net Promoter score can be applied to customers and organization members alike to determine if both groups are happy enough with the company to give favorable referral of it to others. I wonder if the solution can really be as simple as just one question, although I do see the strong merits of asking it. All in all, the book contains a great deal of useful information, and would definitely be worth reading for anyone who is interested in utilizing customer satisfaction as a pivotal tool to their company's continual success.

The Ultimate Question 2.0 is a fresh view at the value of loyal customers, and satisfied employees. Although conventional wisdom often dictates that importance of profit should outweigh customer satisfaction, this book teaches the exact opposite. Pleasing customers and creating a workplace where even employees are promoters for you company is not only cost effective, it is the right thing to do. The proof is in the names of big name companies held up as examples in the book, who have kept their focus on creating customers that are more than just customers, they are promoters of their company's name, and the quality of their products. This type of dedication is of utmost value to the company whose goals include perpetual profit, and success.