Customer Loyalty
“Would you recommend us to a friend?” is the ultimate question that can predict the future success of a company or sales person according to best-selling author and financial expert, Fred Reichheld.
In his book, The Ultimate Question, published by Harvard Business School Press, Reichheld elaborates on how customer loyalty is more important than ever before and drives results in repurchase, referrals to other customers, feedback for future improvements and selling additional lines of products and services.
In a day when the “speed of thought” can be communicated at “the speed of light” the Promoters and Detractors that a company is creating can quickly communicate with and influence others. Reichheld has a simple formula for figuring if a company is manufacturing Promoters or Detractors. Here it is.
Customers rate the question, “Would you recommend us to a friend?” on a scale of 1 – 10 with 10 indicating they are Extremely Likely to recommend and 0 Not At All Likely to recommend. According to Reichheld responders in the 9 – 10 range can be classed as Promoters and anything below a 6 is a Detractor. The bottom line, according to Reichheld is that on average increasing a Net Promoter Score (NPS) by just a few points above a competitor can more than double a company’s growth rate.
As you see, the concept is simple and easy to use and appears to be highly effective. We hope this information will be of some help to you and assist in your own marketing and sales strategy. For more information we would refer you to the text, The Ultimate Question.
360training wants to be your educational and training partner and hope our performance is such that you would recommend us to a friend.
In his book, The Ultimate Question, published by Harvard Business School Press, Reichheld elaborates on how customer loyalty is more important than ever before and drives results in repurchase, referrals to other customers, feedback for future improvements and selling additional lines of products and services.
In a day when the “speed of thought” can be communicated at “the speed of light” the Promoters and Detractors that a company is creating can quickly communicate with and influence others. Reichheld has a simple formula for figuring if a company is manufacturing Promoters or Detractors. Here it is.
Customers rate the question, “Would you recommend us to a friend?” on a scale of 1 – 10 with 10 indicating they are Extremely Likely to recommend and 0 Not At All Likely to recommend. According to Reichheld responders in the 9 – 10 range can be classed as Promoters and anything below a 6 is a Detractor. The bottom line, according to Reichheld is that on average increasing a Net Promoter Score (NPS) by just a few points above a competitor can more than double a company’s growth rate.
As you see, the concept is simple and easy to use and appears to be highly effective. We hope this information will be of some help to you and assist in your own marketing and sales strategy. For more information we would refer you to the text, The Ultimate Question.
360training wants to be your educational and training partner and hope our performance is such that you would recommend us to a friend.
posted by 360training at
9:21 AM
1 Comments:
If your readers are interested in reviewing case studies of Net Promoter in action, here is a link to the official website:
http://www.netpromoter.com/success-stories/index.php
Numerous more stories will be shared at this week's conference in Miami. Here is a link to the conference blog, which will be populated later this week:
http://netpromoter.typepad.com/npc_miami_2008/
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Amy Madsen, at 1:03 PM
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