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The Boomer Bulletin - 2010
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Better Customer Service With Net Promoter

Posted By Deanna Cox, Thursday, March 04, 2010
Deanna Cox

Has your firm looked into its customer service? Do you know how your customers feel about your firm? If not you should look into the Net Promoter (NP). The concept of Net Promoter was developed by Fred Reichheld, director Emeritus and fellow at Bain & Company. The Net Promoter survey was developed to be easily taken by customers in a short time to provide companies with valuable information that they could use to develop their customer service and retain clients.

Boomer Consulting, Inc. works with Steve Blundell to deliver this valuable tool to you. We facilitate delivery of the survey to your client list, compile all of the results so that it is easy to read and we suggest what your next step is. If you are interested in more information for The Net Promoter please contact me by e-mail at Deanna.Cox@boomer.com or by phone at 785-537-2358 x 125.

About Net Promoter

The Net Promoter (NP) concept was developed by Fred Reichheld, director Emeritus and fellow at Bain & Company. He is also the author of the best sellers The Loyalty Effect (1996), Loyalty Rules (2001), and his most current book The Ultimate Question. A newly released book, Answering the Ultimate Question by Richard Owens and Laura Brooks PHD, contains 80 case studies from companies that have adopted the Net Promoter concept.

After researching the best question to ask customers about their loyalty to companies that they do business with, Fred found that the answer to one question was the best indicator of loyalty. The question is "Would you recommend XYZ company to your friends or colleagues?”

Fred then developed a simple scale to measure the intensity of the response. The scale is zero to ten, where zero indicates "not at all likely to recommend” and 10 is "very likely to recommend”.

The survey was sent to customers of 14 companies in 6 industries. When tabulating the results of the observed behavior of the respondents, the answers fell into three logical clusters. First there were promoters (those that answered 9 or 10); Passives (answered 7 and 8) and finally detractors (answered 0 to 6). Promoters exhibited the behaviors of repeat purchases, additional purchases and referral. Passives, although satisfied with the service or product would switch to another company for a better deal. Finally, detractors were not satisfied and told others of their dissatisfaction.

Armed with this information, Fred developed the Net-Promoter score, one question survey, one score to track. The Net-Promoter score reflects the difference between the percent of promoters minus the % of detractors.

Additional research confirmed a strong correlation between high net-promoter scores and growth.

Tags:  customer service  Deanna Cox 

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