Net Promoter

What is Net Promoter?

Net Promoter is a method for calculating your customer’s loyalty and using feedback to increase company performance. It was developed by Satmetrix, Bain & Company and Fred Reichheld. This concept was first promoted in Reichheld’s book ‘The Ultimate Question’. Since its publication, it has been adopted by leading organisations all over the world that use it to measure and improve customer loyalty.

Net Promoter Score (NPS) is a method which makes organizations and employees responsible for the way they deal with their clients. It has become extremely popular due to its simplicity and its effect on company growth. Employees on all levels become aware of the importance of the ‘open door to clients’ policy, because this policy leads to performance improvements.

The Net Promoter program is not simply a method of calculating client satisfaction levels. Simply measuring NPS will not lead to business success. To manage customer loyalty and increase profits, it is necessary to use the feedback in a disciplined and goal-oriented manner with a view of continual improvement. Management must be committed and the fastest sales processes and systems for informing employees need to be implemented. This will allow the company to react to customer feedback, and in turn, achieve better business results.

NPS is becoming part of quarterly financial reports issued by prominent organisations listed on the stock exchange.

You can download the actual industry Net Promoter results here:

Satmetrix NPS Benchmark Charts US 2010

Satmetrix Benchmark Charts Europe 2010

These important players already use Net Promoter for management and development: