Answering the Ultimate Question: How Net Promoter Can Transform Your Business

Answering the Ultimate Question: How Net Promoter Can Transform Your Business

by Richard Owen, Laura L. Brooks
Released November 2008
Publisher(s): Jossey-Bass
ISBN: 9780470260692

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Book description

Fred Reichheld's 2006 book The Ultimate Question, that question being, "How likely is it that you would recommend this company to a friend or colleague?"-challenged the conventional wisdom of customer satisfaction programs. It coined the terms 'bad profits' and 'good profits' and pointed to a faster, much more accurate way of gauging customers' real loyalty to a company, introducing a quantitative measure (the Net Promoter Score) for establishing a baseline and effectively tracking changes going forward. Richard Owen and Laura Brooks are co-developers, along with Reichheld, of the methodology behind answering the question. In this book, Owen and Brooks tell how based on a variety of real case studies' to actually embed Net Promoter discipline in organizations of all types.

Table of contents

  1. Copyright
  2. Introduction
    1. One Powerful Question, Many Powerful Insights
      1. What Did Companies Do with Net Promoter?
      2. Pivotal Practices Make or Break Programs
    2. A How-To Manual for Net Promoter Success
    3. True Stories from Real Businesses
  3. 1. Net Promoter Fundamentals and Operating Model
    1. 1.1. A Net Promoter Primer
    2. 1.2. Why Traditional Approaches Fail
      1. 1.2.1. An Operational Approach, Not a Research Project
      2. 1.2.2. Satisfaction Versus Loyalty
      3. 1.2.3. Loyalty Metrics Held to the Standards of Financial Reporting
      4. 1.2.4. Bad Profits
    3. 1.3. Net Promoter: Key Tenets
      1. 1.3.1. Methodology
      2. 1.3.2. Philosophy
      3. 1.3.3. Action and Accountability
      4. 1.3.4. Emotionality
      5. 1.3.5. Linkage to Financial Outcomes
    4. 1.4. The Net Promoter Operating Model
      1. 1.4.1. Element 1: Create Customer-Centric DNA
      2. 1.4.2. Element 2: Develop an Enterprise Roadmap
      3. 1.4.3. Element 3: Build Trustworthy Data
      4. 1.4.4. Element 4: Identify Root Cause
      5. 1.4.5. Element 5: Drive Action and Accountability
      6. 1.4.6. Element 6: Innovation and Transformation
    5. 1.5. Putting It Together: Implementing the Operating Model
  4. 2. Using Customer Economics and Segmentation to Maximize Loyalty
    1. 2.1. Quest for Customer Intimacy
    2. 2.2. Segmenting for Optimal Results
      1. 2.2.1. LEGO's Brick-by-Brick Segmentation
      2. 2.2.2. Segmenting for Good Profits
    3. 2.3. Calculating Return on Promoters
      1. 2.3.1. Analysis of Strategic Customers
      2. 2.3.2. Estimating the Value of Moving Customers Between NPS Segments
        1. 2.3.2.1. Estimating the Value Using Financial Data
        2. 2.3.2.2. Estimating the Value Without Financial Data: Using Proxy Measures
    4. 2.4. Estimating the Impact of Word of Mouth
    5. 2.5. A Case Study in Valuing Word of Mouth
      1. 2.5.1. Calculating Total Customer Value
      2. 2.5.2. Apple's Word-of-Mouth Success
      3. 2.5.3. Apple's Net Promoter Economics
    6. 2.6. Conclusion
  5. 3. Driving Change Instill Customer-Centric DNA
    1. 3.1. Why Discuss Change Management?
      1. 3.1.1. Challenges in NPS-Driven Change
      2. 3.1.2. The Tale of Two Companies That Create Alignment
    2. 3.2. Aligning the Organization
    3. 3.3. Getting Senior Leadership Committed
      1. 3.3.1. Techniques for Cementing Leadership Alignment
    4. 3.4. Getting the Front Line Aligned
      1. 3.4.1. Techniques for Cementing Front Line Alignment
      2. 3.4.2. Building a Fanatical Employee Culture
    5. 3.5. Goal Setting in the Context of Change Management
      1. 3.5.1. Incentives
      2. 3.5.2. Cross-Functional Integration Through Ownership
    6. 3.6. Program Governance Model
      1. 3.6.1. Creating Roles and Responsibilities for Governance
      2. 3.6.2. The CEO's Governance Role
      3. 3.6.3. Executive Sponsors
      4. 3.6.4. Business Function Owners
      5. 3.6.5. The Program Team
      6. 3.6.6. Cross-Functional Champions
      7. 3.6.7. Experian's Change Agents
      8. 3.6.8. General Governance Guidelines
    7. 3.7. Conclusion
  6. 4. Designing an Enterprise Roadmap
    1. 4.1. Customer Solutions
      1. 4.1.1. Operational and Structural Improvements
      2. 4.1.2. Structural Improvements Drive Dell's "Call Factory"
    2. 4.2. Relationship Versus Transactional Survey Processes
      1. 4.2.1. Putting Them Together: Two Survey Types with Two Improvement Time Frames
    3. 4.3. The Customer Corridor and Its Touch Points
      1. 4.3.1. Putting Yourself in Your Customer's Shoes
      2. 4.3.2. Virgin Media's Customer Corridor
    4. 4.4. Employee Solutions
      1. 4.4.1. Employee Impact
      2. 4.4.2. Shifting the Organization's Culture
      3. 4.4.3. "Be the Reason" at Dell
        1. 4.4.3.1. Listening to Employees
        2. 4.4.3.2. Dell's Campaign
        3. 4.4.3.3. Dell's Employee-Based Survey
    5. 4.5. Phased Versus Big Bang Approach
    6. 4.6. Sequencing Your Roadmap
      1. 4.6.1.
        1. 4.6.1.1. Executive Engagement and Proof Points
        2. 4.6.1.2. Customer Strategy and Organizational Context
        3. 4.6.1.3. Internal Communication and Clear Accountability
        4. 4.6.1.4. Operational Quick-Win Improvements
        5. 4.6.1.5. Track Record of Trustworthy Data
        6. 4.6.1.6. Strategic Big Bets
        7. 4.6.1.7. Assessment and Ongoing Improvements
      2. 4.6.2. Virgin Media's Big Bang Journey
      3. 4.6.3. Sage Software's Four-Phase Evolutionary Program
    7. 4.7. Conclusion
  7. 5. Building Trustworthy Data
    1. 5.1. What Is Trustworthy Data?
    2. 5.2. Creating the Strategy: Three Key Elements
    3. 5.3. The Right Customers: Measuring Who Matters
      1. 5.3.1. Recruiting Strategies
      2. 5.3.2. Sampling Considerations
    4. 5.4. The Right Question: Choosing the Right Metric
      1. 5.4.1. Feedback to Improve Fulfillment at LEGO
    5. 5.5. The Right Questions: Fitting Survey Strategy to the Business
      1. 5.5.1. Designing a Sound Business Survey
      2. 5.5.2. Writing Good Business Questions
      3. 5.5.3. Sequencing Questions by Touch Point
      4. 5.5.4. Defining the Customer Corridor from the Measurement Perspective
      5. 5.5.5. Sage Software's Customer Corridor
      6. 5.5.6. Reviewing Your Choices
    6. 5.6. Determining the Right Time to Measure
      1. 5.6.1. When to Measure NPS
      2. 5.6.2. Achieving an Enterprise View
    7. 5.7. Other Considerations
      1. 5.7.1. Choosing a Data Collection Channel
      2. 5.7.2. Response Rates and Gaming
        1. 5.7.2.1. Getting the Response Rate Up
        2. 5.7.2.2. Investment and Reward
        3. 5.7.2.3. Thwarting Gaming Before and After
    8. 5.8. Conclusion
  8. 6. Determining the Root Cause of Promoters and Detractors
    1. 6.1. Common Analytical Approaches
    2. 6.2. Stated Driver Analysis
      1. 6.2.1. Root Cause Analysis
        1. 6.2.1.1. The Five Whys
        2. 6.2.1.2. Example of the Five Whys Technique
        3. 6.2.1.3. GE Real Estate Dives to the Root
      2. 6.2.2. Comment Analysis and Categorization
        1. 6.2.2.1. GE Real Estate Values Verbatims
        2. 6.2.2.2. Automated Tools
      3. 6.2.3. Adaptive Conversation
        1. 6.2.3.1. LEGO Adapts to Consumer Conversation
    3. 6.3. Inferential Driver Analysis
      1. 6.3.1. Correlation
      2. 6.3.2. Regression Analysis
      3. 6.3.3. Relative Impact Analysis
      4. 6.3.4. What Can We Infer?
    4. 6.4. Comparison of the Tools
    5. 6.5. Conclusion
  9. 7. The Closed-Loop Process
    1. 7.1. Defining Closed-Loop Excellence
      1. 7.1.1. Designing a Closed-Loop Process
        1. 7.1.1.1. Which Customers Should Receive Follow-Up?
        2. 7.1.1.2. Who Conducts the Follow-Up?
        3. 7.1.1.3. What Is the Most Effective Time for Follow-Up?
        4. 7.1.1.4. How Should the Follow-Up Be Handled?
        5. 7.1.1.5. What Happens After the Follow-Up?
    2. 7.2. Action at All Levels
    3. 7.3. Closing the Loop at the Front Line
      1. 7.3.1. Applying the Closed-Loop Process at the Front Line: Service and Support Center
      2. 7.3.2. Sage's Simply Accounting Gets Personal
      3. 7.3.3. Applying the Closed-Loop Process at the Front Line: Account Management
      4. 7.3.4. Aggreko's Net Promoter Toolbox
    4. 7.4. Case Study: BearingPoint Closes the Loop at the Account Level
      1. 7.4.1. BearingPoint's Carrot
      2. 7.4.2. Step 1: Selecting the Respondents
      3. 7.4.3. Step 2: Positioning the Program
      4. 7.4.4. Step 3: Survey Notification and Follow-Up
      5. 7.4.5. Stage 4: Results Review and Action Planning
      6. 7.4.6. Stage 5: From Action Plan to Account Plan
      7. 7.4.7. Stage 6: Closing the Loop with the Client
    5. 7.5. Closing the Loop at the Management Level
      1. 7.5.1. Customer Service and Support Management-Level Application
      2. 7.5.2. B2B Strategic Accounts Management-Level Application
    6. 7.6. Closing the Loop at the Executive Level
      1. 7.6.1. Customer-Centric Decision Making
    7. 7.7. Accountability at All Three Levels
      1. 7.7.1. Cognos's Gold Standard
    8. 7.8. Conclusion
  10. 8. Setting Realistic Targets and Improvement Strategies
    1. 8.1. Relative Performance
      1. 8.1.1. Performance Relative to Competitors
      2. 8.1.2. Approaches to Gathering Competitive Benchmarks
      3. 8.1.3. Industry Variation
      4. 8.1.4. GE Real Estate's Competitive Benchmarks
    2. 8.2. Cultural Differences
      1. 8.2.1. Brady Corporation and Goal Setting
      2. 8.2.2. Setting Realistic Goals
      3. 8.2.3. Internal Comparisons
      4. 8.2.4. Goals and Organizational Learning
    3. 8.3. Compensation
      1. 8.3.1. Establishing Baseline Performance
      2. 8.3.2. Participation in the Compensation Program
      3. 8.3.3. A Single Metric or a Combination
      4. 8.3.4. Compensation and Level of Employee
    4. 8.4. Improvement Time Frames and Rhythm
    5. 8.5. The Methodology for Setting Targets
    6. 8.6. Conclusion
  11. 9. Innovation Drives Transformation
    1. 9.1. Technology Enables Transformation
      1. 9.1.1. Enterprise Roadmap
      2. 9.1.2. Trustworthy Data
      3. 9.1.3. Root Cause Analysis
      4. 9.1.4. Action and Accountability
      5. 9.1.5. Innovation and Transformation
    2. 9.2. Operational Improvements and Innovation
      1. 9.2.1. Ascension Health: Operational Improvements Create Ideal Patient Care
    3. 9.3. Developing Brand-Focused Communities
      1. 9.3.1. Brand-Based Communities
      2. 9.3.2. LEGO's Communities
      3. 9.3.3. Intuit's Inner Circle Collaboration
    4. 9.4. Identifying NetWorked Promoters
      1. 9.4.1. What's Special About NetWorked Promoters?
        1. 9.4.1.1. Networkers
        2. 9.4.1.2. Promoters
      2. 9.4.2. Harnessing Word of Mouth
      3. 9.4.3. Activating NetWorked Promoters
      4. 9.4.4. NetWorked Promoter Summary
    5. 9.5. Conclusion
  12. Resources: Interviews Conducted
  13. References
  14. Acknowledgments
  15. The Authors

Product information

  • Title: Answering the Ultimate Question: How Net Promoter Can Transform Your Business
  • Author(s): Richard Owen, Laura L. Brooks
  • Release date: November 2008
  • Publisher(s): Jossey-Bass
  • ISBN: 9780470260692