How NPS Drives Profitable Growth: The Economic Payoff of High-Quality Customer Relationships--And the Net Promoter System

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Synopsis
In today's Web-savvy, customer-driven world, where negative word of mouth about your company's products and services is instantly broadcast over a global PA system, you're smart to focus more closely on your customers as you fight to stay competitive. But building up legions of enthusiastic, loyal customers requires investment. And it requires reducing your company's reliance on "bad profits"--profits earned at the expense of customer relationships. In this chapter, world-renowned expert on loyalty economics Fred Reichheld and his Bain colleague Rob Markey use the compelling examples of two companies, Royal Philips Electronics and Dell Computer, to illustrate how the Net Promoter score (NPS) enabled these vast enterprises to become more customer focused while also boosting revenue growth. The chapter clarifies the economics of NPS in terms that numbers-oriented managers and executives will understand, focusing on the lifetime value of your company's average customer. You'll be introduced to the components of the Net Promoter score as they relate to your company's "promoters," "detractors," and "passives": retention rate, pricing, annual spend, cost efficiencies, and word of mouth. In short, this chapter will show you that by moving beyond traditional customer-satisfaction surveys and rigorously tracking customer economics with NPS, you can finally create a link between customer feedback and cash flow. You can begin to squeeze bad profits out of your income statements and tune up your growth engine for consistently superior performance.
Copyright:
2011

Book Details

Book Quality:
Publisher Quality
Publisher:
Harvard Business Publishing
Date of Addition:
Copyrighted By:
HBS Press
Adult content:
No
Language:
English
Has Image Descriptions:
No
Categories:
Nonfiction, Business and Finance
Submitted By:
Bookshare Staff
Usage Restrictions:
This is a copyrighted book.

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