Answering the Ultimate Question: How Net Promoter Can Transform Your Business
ISBN: 0470260696

Defining the (1) metric, or Net Promoter Score and (2) a NP operational model.

P2. “NPS = %Promoters – %Detractors”
– where customers are asked the question “How likely are you to recommend company/ pdt X to your friend/ colleague”
– they are asked to rank from a scale of 0 (not likely at all) to 10 (extremely likely)
– the score is the percentage of respondents who rated 9 or 10 (Promoters), less the percentage who rated 0 to 6 (Detractors). Ratings of 7 to 8 are considered Passives.

P3. NPS is relevant in today’s context because of the impact of Word of Mouth (though I think it also has to be accompanied by active call for customers to help spread the word. We also need a separate Customer Satisfaction prg, as the score is only a score).

For services/ pdts where customers don’t have other real alternatives, NPS questions should be accompanied with other supporting questions. p129

Authors make a distinction bet Research-based approach Vs Operational approach.
P5. “an operational approach starts by understanding which data and internal processes will create change across the organisation and how to use that information effectively. Whereas a research approach focuses on creating an insightful report for a handful of executives, an operational approach is concerned with building a program that engages the entire organisation in improving customer relationships.”

P6. Authors make the distinction between Satisfaction Vs Loyalty. “… Satisfied customers will still defect”.

P90. Two dimensions of business improvement that result from a Net Promoter prg:
Operational improvements (quick wins, often happens at point of customer contact)
Structural improvements (results more apparent in long term, involves often requires some structural BPR)

P100. Virgin Media customer corridor.

P10. Five key tenets of a Net Promoter programme:
– Methodology (the NPS metric)
– Philosophy (“treat others like how you want to be treated”)
– Action & Accountability (staff must be able to act based on the data; authors also suggest all divisions include reviewing the same NPS metric when discussing dpt/ org goals)
– Emotionality (to translate the customer perspective to terms that employees, who have the power to fix things, can relate to)
– Linkage to financial outcomes (expanded in Chpt 2)

P19. NP operating model.
– customer-centric DNA (top mgt support and whole-org alignment as well; Chpt 3)
– an enterprise roadmap (how the NP will evolve; cannot remain static for the org) Chpt 2 & 4
– trustworthy data (measuring the right customers/ measuring who matters; the right time to measure) Chpt 5* & 8
– identifying root cause (Chpt 6 covers some techniques)
– action & accountability (Chpt 7)
– innovation & transformation (Chpt 9 case studies)

P131 – 160. Chpt of trustworthy data (reads like a concise data collection methodology). On designing questions, number of questions (note: length of survey not a predictor of response), how to craft questions, when to ask, how to collect.

P169. Short survey questions: one org asked (1) the Recommend question, (2) Why customers gave that score, (3) what else can the company do to improve.

Chpt 6. Root Cause Analysis.
– Inferential Driver (e.g. Correlation; Relative Impact Analysis)
– Adaptive Conversations (each customer contributes ideas in their own words, endorses select statements by others, ranks resulting statements in order of importance).

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