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Fortune

The simple metric that’s taking over big business

The simple metric that’s taking over big business

Net Promoter Score, a basic measure of customer sentiment, is now used by two-thirds of the Fortune 1000. What makes it such a powerful number?

  • May 18, 2020
  • min read

Fortune

The simple metric that’s taking over big business

At least two-thirds of the Fortune 1000 use the Net Promoter Score, including most or all of the financial service companies, airlines, telecom companies, retailers, and others. Quietly, steadily, without anyone much noticing, NPS has moved into the C-suites of most big companies and the owners’ offices of thousands of small ones—extending its reach deeply and broadly through the global economy.

To understand what makes NPS so compelling, it’s necessary to know where it came from. The metric was introduced to the world in a 2003 article in the Harvard Business Review by Fred Reichheld, a partner with Bain & Company.

Its roots are deep. For years Reichheld had been “focused on loyalty and treating people right,” he says. He found that “companies that focus on earning the loyalty of customers are taking over the world.”

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