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      Harvard Business Review

      Net Promoter 3.0

      Net Promoter 3.0

      Introducing Earned Growth℠, the accounting-based counterpart to the Net Promoter Score.

      Par Fred Reichheld, Darci Darnell, et Maureen Burns

      • min

      Article

      Net Promoter 3.0
      en

      This article originally appeared in Harvard Business Review.

      “On a scale from zero to 10, how likely would you be to recommend our company to a friend?”

      As a consumer, you’ve probably encountered this sort of question dozens of times—after an online purchase, at the end of a customer service interaction, or even after a hospital stay. And if you work at one of the thousands of companies that ask this question of their customers, you’re familiar with the Net Promoter System (NPS), which Fred Reichheld invented and first wrote about almost 20 years ago. (See “The One Number You Need to Grow,” Harvard Business Review, December 2003.) Since then, NPS has spread rapidly around the world. It has become the predominant customer success framework—used today by two-thirds of the Fortune 1000. Why has it been embraced so enthusiastically? Because it solves a vital challenge that our financial systems fail to address. Financials can easily tell us when we have extracted $1 million from our customers’ wallets, but they can’t tell us when our work has improved customers’ lives.

      Order the Bain Book

      Winning on Purpose: The Unbeatable Strategy of Loving Customers

      This new book by Fred Reichheld, Darci Darnell, and Maureen Burns demonstrates that great leaders embrace a higher purpose to win, and Net Promoter® shines as their guiding star.

      That’s the objective of NPS. It gauges how consistently a firm turns customers into advocates by tracking and analyzing three segments: promoters, customers who are so pleased with their experience that they recommend your brand to others; passives, customers who feel they got what they paid for but nothing more and who are not loyal assets with lasting value; and detractors, customers who are disappointed with their experience and harm the firm’s growth and reputation. Promoters give a score of 9 or 10, passives a 7 or 8, and detractors a 6 or less. To calculate your firm’s overall Net Promoter Score, you subtract the percentage of your customers who are detractors from the percentage who are promoters.

      While that arithmetic might seem simplistic, the full system is intended to inspire teams to deliver experiences that are not merely satisfactory but remarkable. When customers feel cared for, they come back for more and bring their friends.

      The power of customer advocacy is evidenced by the remarkable success of NPS leaders. Consider the 11 public firms highlighted by Fred Reichheld and Rob Markey in their book The Ultimate Question 2.0. Over the past decade, their median total shareholder return was five times the US median (for public companies with revenue of more than $500 million as of 2010). Those results motivated more firms to track their Net Promoter Scores—and some to report them to investors.

      Unfortunately, self-reported scores and misinterpretations of the NPS framework have sown confusion and diminished its credibility. Inexperienced practitioners abused it by doing things such as linking Net Promoter Scores to bonuses for frontline employees, which made them care more about their scores than about learning to better serve customers. Many firms amplify the problem by publicly reporting their scores to investors with no explanation of the process used to generate them and no safeguards to prevent pleading (“I’ll lose my job if you don’t rate me a 10”), bribery (“we’ll give you free oil changes for a 10”), and manipulation (“we never send surveys to customers whose claim was denied”). No details are provided about which customers (and how many) were surveyed, their response rates, or whether the survey was triggered by a specific transaction. Reports rarely mention whether the research was performed by a reliable third-party expert using double-blind methodology. In other words, some firms have turned Net Promoter Scores into vanity statistics that damage the credibility of NPS.

      Over time, we realized that the only way to make the system work better was to develop a complementary metric that drew on accounting results, not on surveys. We needed one that would illuminate the quality (and the likely profitability) of a firm’s growth. It had to be based on audited revenue from all customers, not just on a potentially biased sample of survey responses, so that it would be far more resistant to gaming, coaching, pleading, and the response biases that plague the results of non-anonymized surveys. We’re confident we’ve successfully developed that metric.

      In this article, we introduce earned growth as the accounting-based counterpart to the Net Promoter Score, one that will reinforce the effectiveness of NPS, providing firms with a clear, data-driven connection among customer success, repeat and expanded purchases, word-of-mouth recommendations, a positive company culture, and business results.

      READ THE FULL ARTICLE AT HARVARD BUSINESS REVIEW

      Net Promoter®, NPS®, NPS Prism®, and the NPS-related emoticons are registered trademarks, and Net Promoter Score℠, NPSx℠, and Net Promoter System℠ are service marks of Bain & Company, Inc., NICE Systems, Inc., and Fred Reichheld.

      Auteurs
      • Headshot of Fred Reichheld
        Fred Reichheld
        Bain Fellow, Boston
      • Headshot of Darci Darnell
        Darci Darnell
        Partner, Chicago
      • Headshot of Maureen Burns
        Maureen Burns
        Partner, Boston
      Contactez-nous
      Synergies sectorielles
      • Banking
      • Distribution
      • Insurance
      • Services Financiers
      Expertises fonctionnelles transverses
      • Customer Experience
      • Net Promoter System®
      Loyauté Client
      After Years of Customer Loyalty Programs in Insurance, What Works, and What’s Next?

      Based on Bain’s 10 years of research, five themes describe the progress and challenges of earning customers’ advocacy in an increasingly digital experience.

      Voir plus
      Top Digital Use Cases by Industry

      Bain’s research identifies the most useful digital applications, including those that offer the best opportunities for competitive advantage.

      Voir plus
      Services Financiers
      How Banks Can Tease Out the Loyalty Metrics That Matter

      Measuring performance on the key episodes for a bank’s customers allows the bank to focus on investments that will improve loyalty—and its economics.

      Voir plus
      Loyauté Client
      Customer Behavior and Loyalty in Banking: Global Edition 2023

      Banks’ big challenge is the great unbundling by consumers.

      Voir plus
      Distribution
      Measuring and Modeling Customer Love

      Bain’s Fred Reichheld and Jason Barro share NPS® success stories and what customer experience leaders are doing to benchmark company performance.

      Voir plus
      First published in octobre 2021
      Mots clés
      • Banking
      • Customer Experience
      • Distribution
      • Insurance
      • Loyauté Client
      • Net Promoter System®
      • Services Financiers

      Comment nous avons aidé nos clients

      A Bold New Strategy Restores a Bank to a Leadership Position

      Lire l’étude de cas

      From Laggard to Leader: Desjardins Evolves Member Centricity for the Digital Age

      Lire l’étude de cas

      Customer focus helps a P&C insurer grow

      Lire l’étude de cas

      Vous souhaitez continuer cette conversation ?

      Nous aidons des dirigeants du monde entier à matérialiser des impacts et des résultats pérennes et créateurs de valeur dans leurs organisations.

      Net Promoter®, NPS®, NPS Prism®, and the NPS-related emoticons are registered trademarks and Net Promoter Score℠ and Net Promoter System℠ are service marks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld.

      Les points de vue de Bain : notre perspective sur des problématiques auxquelles sont confrontées les entreprises à travers le monde, envoyés chaque mois dans votre boîte de réception. 

      *J’ai lu la politique de confidentialité et j’accepte les conditions.

      Merci de lire notre politique de confidentialité.
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