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The Ultimate Question 2.0 (Revised and Expanded Edition): How Net Promoter Companies Thrive in a Customer-Driven World
Free Ebook The Ultimate Question 2.0 (Revised and Expanded Edition): How Net Promoter Companies Thrive in a Customer-Driven World
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Audible Audiobook
Listening Length: 8 hours and 5 minutes
Program Type: Audiobook
Version: Unabridged
Publisher: Gildan Media, LLC
Audible.com Release Date: November 7, 2011
Whispersync for Voice: Ready
Language: English
ASIN: B0064E4NVI
Amazon Best Sellers Rank:
I had read "The Ultimate Question" in 2006 and read this updated edition to see how Fred Reichheld updated the approach in a business environment that has become more social. In addition, I've been tracking his website and conference announcements over the past 6 months and have a friend who has made presentations about how his company has implemented the Net Promoter program. It seems this approach is gathering momentum, and why not -- it's much more practical than taking mind-numbing surveys about every aspect of the company's business model and customer experience.The focus on only one key question with follow-up is something every employee can conceptually understand and relate to each customer with whom s/he interacts. So the straightfowardness and elegance of the approach solves a major problem many organizations have with implementing such programs. As another reviewer commented, it seems a little bit of overkill to have a whole book to explain that.The bigger issue in my opinion is whether the organization's culture will empower employees to do something to improve a customer experience on the spot to rescue a 0-6 detractor to make that interaction successful. And bigger picture, are the employees able to recognize how current practices could be improved so as to make improvements in best practices and customer experiences that would elevate more customer responses to '9's' and 10's' across the whole organization? To me, this is the bigger challenge and one the book doesn't get into as much. Perhaps that's to be expected because each culture is different and there may not be one best way for that to be done.My friend's company was a great candidate for implementing Net Promoter because much had been done to put their employees into positions where they were empowered to delight the customer, to suggest best practice improvements to their supervisors, and to lobby for their acceptance. Once they've been enabled to do those things, then Net Promoter would be easily implemented.
I recently completed reading The Ultimate Question 2.0[i] by Fred Reichheld. This is the second version of his book explaining and extolling the virtues of the Net Promoter Score or NPS. I was already quite familiar with the NPS methodology having pioneered its use in IT outsourcing. However, I found that the book still had much to commend it.I took a number of key lessons from the book:First, and foremost, the real power of NPS is as part of long-term strategy that places the customer at the heart of business. Reichheld contrasts "good profits" - earned from delighted repeat customers who promote the product to others - with "bad profits" where customers are "misled, mistreated, ignored or coerced". If, other factors cause companies to pursue "bad profits", NPS results will inevitably be poor and cosmetic improvement programs will achieve little.A good NPS score (absolutely or relative to competitors) is NOT an end in itself. The end is sustained competitive advantage and profitable growth.The NPS question and zero-to-ten scale is a straightforward, highly effective approach. It is easy to calculate, understand and compare with others. It does not need to be tailored.Contextual factors are critical to success. These include:Executive commitment and sponsorship. All of the successful case studies featured a direct personal involvement from the CEO;Pervasiveness of NPS-focus. NPS results must gain equal currency and importance within an organization as other management information including financial targets and performance;A closed loop feedback system. The process must embrace timely follow up to the survey respondents from those who have the ability to act upon their comments.Employee Net Promoter Scores (eNPS) have a strong correlation with customer results as engaged employees play a vital role in building customer loyalty.The lessons learned from the many companies cited in the book (e.g. Charles Schwab, Intuit, Phillips, Allianz, Virgin Media) parallel my own experience in implementing the methodology. Despite (or perhaps because of) its simplicity we encountered serious resistance to its introduction. Those responsible for existing customer satisfaction surveys doubted the validity of the NPS methodology, wanted to customize the question, and include it in a much large survey. In the book Reichheld quotes a dictum from Upton Sinclair "it is difficult to get a man to understand something when his salary depends upon not doing so". My version would "it is difficult to get a man to explain things simply, when his profession requires them to be complicated". We also encountered sample bias, with the exclusion of probable detractors. Ironically, one major customer opted out of the survey completely as our use of their feedback would provide an unfair advantage over other suppliers. A preserve rationale if ever there was. As with the examples of the book, patient persistence was necessary to implement a global approach.The one area where the methodology remains incomplete is in the "cost benefit analysis" of implementation of the methodology and improvement of the score. Whilst intuitively, a higher NPS would suggest better financial results "remarkably few firms can confidently quantify the value if improving loyalty (more promoters, fewer detractors) for specific customers or segments". The book provides examples of microeconomic analyses for the impact of NPS on business-to-consumer (b2c) companies. However, the business-to-business (b2b) market is more complex. Here the average NPS for all consumers of the service should, in theory, suggest the overall "loyalty" of the customer organization. However, in practice, many other factors - such as governance, contract duration, and switching costs - come into the equation.So, back to the ultimate question" about "The Ultimate Question 2.0". My answer is 10. I do recommend it and furthermore recommend that you go on to implement the methodology. As Reichheld evangelizes, "The knowledge you can gain from implementing the Net Promoter System is in fact priceless. It will help you run a better business, do more satisfying work, and build relationships that yield a more fulfilling life". Now who would not recommend that?
Rating a book about people rating things. It's like Amazon Inception. Its not the most thrilling read, and it looks at NPS through rose colored glasses. This second version should really do something to address criticism of NPS, instead of just saying critics are wrong. But I think it's part of a plan to get you to hire Bain for your company.But it's also been really helpful for me. I took a job in my company where we are implementing the system and this has helped fill in the gaps with terminology and certain plans we are looking to act on. So if your company or organization is an NPS org, or moving towards it, a recommended read for sure.
I have been in the field of marketing and market research for more than 8 years. As one of the people involved in managing Brand Trackers, Customer Sat and NPS at the companies I work in, I have always been intrigued by this concept. I have to say, this book is an absolute winner. Loads of amazing examples, description of NPS in practice and adequate explanation of concepts makes it a perfect reading. Moreover, it makes you think about other things you can do around NPS. The book talks about all things that can be impacted by NPS and things that can impact NPS. Makes your mind move. One downside - some things do get repetitive in the book. You think - did I just read this earlier? The book can be cut down by 5% I think. But overall, I love the book and recommend to anyone who is in marketing, research, customer experience teams OR in general to anyone who is interested in learning about how to create a customer focused company and measure such success. So many books waste your time and money. Worth every penny and a keeper for the rest of my professional career. I am a promoter for this book - 10 on 10. I also will wait for the 3.0 version - which will of course bring the next set of learnings on this amazing topic. Or - will simply try and join the NPS Loyalty Forum. :)
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