Net Lives Enriched

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Top Takeaways:

Net Promoter Score is the metric that millions of companies have used for decades to know if they are doing a good job for their customers and their employees. It aims to measure if you have gained your customer’s loyalty enough to earn their repeat business and new business from their friends and family.

But, in the age of cookies, click rates, and measurable eyeball hang times, is a company’s NPS still relevant?

And, is your company using the NPS metric correctly?

This week, we interview Fred Reichheld, the developer of the Net Promoter score to talk about how many companies are misusing the Net Promoter Score and missing out on the potential benefit that it can help your business achieve. We also talk about how NPS is still applicable in modern business and how it can be used correctly.

To put his money where his mouth is, Fred invested his own money in all of the public companies that are NPS leaders. The return on his investments is almost three times the S&P. In today’s episode of Amazing Business Radio, Fred and I discuss how you can use the Net Promoter Score to invest in customer loyalty, which pays big dividends!

Quotes:

“The Net Promoter Score plus caliber research is the only way to sustainably deliver great results to your shareholders over time”

“Treating customers so well that they come back and bring their family and friends is the flywheel of profitable, sustainable growth.”

“Who you hang around within your life influences everything – how you think about success and what’s important to you. This is true with who you want to be a customer of, who do you want to be an employee of, who do you want to invest in.”

About:

Fred Reichheld, creator of the Net Promoter® system of management, the founder of Bain & Company’s Loyalty practice, and the author of five books including his latest Winning on Purpose: The Unbeatable Strategy of Loving Customers. He is currently a Fellow and Senior Advisory Partner at Bain, where he has worked since 1977.

Shep Hyken is a customer service and experience expert, New York Times bestselling author, award-winning keynote speaker, and your host of Amazing Business Radio.

This episode of Amazing Business Radio with Shep Hyken answers the following questions … and more:

1. What is Net Promoter Score?
2. How do you calculate Net Promoter Score?
3. Is NPS still relevant today?
4. How can I improve my Net Promoter Score?
5. What is a good NPS score for a company?