The founder of Net Promoter Score believes marketers have just scratched the surface of what is possible with NPS, as long as they stop using it as an internal bonus metric.
In the 16 years since the launch of Net Promoter Score (NPS), the metric’s founder Fred Reichheld has seen the system implemented with “extraordinary creativity”, while also being terribly misused.
In essence Reichheld, a partner at consultancy Bain & Company, describes the NPS system as “very intuitive” in its ability to get to the heart of whether your brand has enriched or diminished a customer’s life. One question – would you recommend this brand to your friends or family, is sufficient to get a pretty good read on customer sentiment, argues Reichheld.
“Of course, you’ll do a better job if you ask 100 questions, but how many customers are willing to sit down and have 100 questions barraged at them? So it’s very practical,” he states.
Reichheld can, therefore, appreciate how the practicality of using a single question to analyse consumer sentiment has appealed not only to marketers, but also CEOs and CFOs, especially as customer experience climbs up the corporate agenda.
Despite its widespread use, the NPS founder believes some concerns about the system are justified and linking the score to bonus remuneration, for example, is “just asking for trouble”.
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