Answering the Ultimate Question How Net Promoter Can Transform Your Business

by Owen, Richard; Brooks, Laura L.

• ISBN13: 9780470260692
• ISBN10: 0470260696
• Edition: 1st
• Format: Hardcover
• Copyright: 2008-11-24
• Publisher: Jossey-Bass

Summary

Fred Reichheld's 2006 book The Ultimate Question, that question being, "How likely is it that you would recommend this company to a friend or colleague?"-challenged the conventional wisdom of customer satisfaction programs. It coined the terms 'bad profits' and 'good profits' and pointed to a faster, much more accurate way of gauging customers' real loyalty to a company, introducing a quantitative measure (the Net Promoter Score) for establishing a baseline and effectively tracking changes going forward. Richard Owen and Laura Brooks are co-developers, along with Reichheld, of the methodology behind answering the question. In this book, Owen and Brooks tell how based on a variety of real case studies' to actually embed Net Promoter discipline in organizations of all types.

Author Biography

Richard Owen is CEO of Satmetrix. Satmetrix was instrumental in developing the concept of Net Promoter and is dedicated to helping organizations apply and benefit from this revolutionary approach using innovative technology and services.

Laura Brooks, PhD, is vice president of research and consulting at Satmetrix. She is the acknowledged expert in applying the Net Promoter discipline at an operational level. Brooks has conducted and published over thirty studies on Net Promoter, customer loyalty, and word of mouth marketing.

Table of Contents

Introduction	p. ix
Net Promoter Fundamentals and Operating Model	p. 1
A New Promoter Primer	p. 1
Why Traditional Approaches Fail	p. 3
Net Promoter: Key Tenets	p. 10
The Net Promoter Operating Model	p. 17
Putting It Together: Implementing the Operating Model	p. 23
Using Customer Economics and Segmentation to Maximize Loyalty	p. 25
Quest for Customer Intimacy	p. 26
Segmenting for Optimal Results	p. 27
Calculating Return on Promoters	p. 34
Estimating the Impact of Word of Mouth	p. 44
Conclusion	p. 56
Driving Change: Instill Customer-Centric DNA	p. 57
Why Discuss Change Management?	p. 57
Aligning the Organization	p. 61
Getting Senior Leadership Committed	p. 62
Getting the Front Line Aligned	p. 66
Goal Setting in the Context of Change Management	p. 71
Program Governance Model	p. 77
Conclusion	p. 88
Designing an Enterprise Roadmap	p. 89
Customer Solutions	p. 90
Relationship Versus Transactional Survey Processes	p. 94
The Customer Corridor and Its Touch Points	p. 97
Employee Solutions	p. 103
Phased Versus Big Bang Approach	p. 109
Sequencing Your Roadmap	p. 111
Conclusion	p. 118
Building Trustworthy Data	p. 119
What Is Trustworthy Data?	p. 120
Creating the Strategy: Three Key Elements	p. 121
The Right Customers: Measuring Who Matters	p. 122
The Right Question: Choosing the Right Metric	p. 128
The Right Questions: Fitting Survey Strategy to the Business	p. 131
Determining the Right Time to Measure	p. 143
Other Considerations	p. 149
Conclusion	p. 159
Determining the Root Cause of Promoters and Detractors	p. 161
Common Analytical Approaches	p. 162
Stated Driver Analysis	p. 162
Inferential Driver Analysis	p. 178
Comparison of the Tools	p. 187
Conclusion	p. 189
The Closed-Loop Process	p. 191
Defining Closed-Loop Excellence	p. 192
Action at All Levels	p. 202
Closing the Loop at the Front Line	p. 204
Case Study: BearingPoint Closes the Loop at the Account Level	p. 214
Closing the Loop at the Management Level	p. 218
Closing the Loop at the Executive Level	p. 223
Accountability at All Three Levels	p. 226
Conclusion	p. 228
Setting Realistic Targets and Improvement Strategies	p. 229
Relative Performance	p. 229
Cultural Differences	p. 234
Compensation	p. 241
Improvement Time Frames and Rhythm	p. 247
The Methodology for Setting Targets	p. 248
Conclusion	p. 250
Innovation Drives Transformation	p. 253
Technology Enables Transformation	p. 254
Operational Improvements and Innovation	p. 258
Developing Brand-Focused Communities	p. 264
Identifying NetWorked Promoters	p. 274
Conclusion	p. 281
Resources: Interviews Conducted	p. 283
References	p. 291
Acknowledgments	p. 295
The Authors	p. 297
Index	p. 299
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