In the first edition of this landmark book, business loyalty guru Fred Reichheld revealed the question most critical to your company’s future: �Would you recommend us to a friend?” By asking customers this question, you identify detractors, who sully your firm’s reputation and readily switch to competitors, and promoters, who generate good profits and true, sustainable growth.
You also generate a vital metric: your Net Promoter Score. Since the book was first published, Net Promoter has transformed companies, across industries and sectors, constituting a game-changing system and ethos that rivals Six Sigma in its power.
In this thoroughly updated and expanded edition, Reichheld, with Bain colleague Rob Markey, explains how practitioners have built Net Promoter into a full-fledged management system that drives extraordinary financial and competitive results. With his trademark clarity, Reichheld:
� Defines the fundamental concept of Net Promoter, explaining its connection to your company’s growth and sustained success � Presents the closed-loop feedback process and demonstrates its power to energize employees and delight customers � Shares new and compelling stories of companies that have transformed their performance by putting Net Promoter at the center of their business
Practical and insightful, The Ultimate Question 2.0 provides a blueprint for long-term growth and success.
I am working in market research field since Seven years, I always said that NPS creator succeeded not in creating the ultimate question but in marketing and promoting that they did so, this book is another Marketing campaign for this metric which I am not convinced at all that it is deserved to be called the ultimate question, I preferred to call NPS the ultimate myth . .
Although the author admit that there are some white papers claming bad things about NPS, but he didn't discussed thier claims while it is a great chance to prove they were wrong, but on his book indirectly said: "The ultimate test for any Customer-relationship metric is whether it helps the Organisation act in a customer-centric manner, therby tuning the growth engine to operate at peak efficiency"
with all respect NPS is like darwin theory of evolution, it starts small and then people make it big ... very very big but at the end it is just bull**it.
I am not against using NPS and we are using it, but I am against making this huge prpoganda around it and consider it the GOD of all questions, i.e. using CES Customer effort score which is also a one question metric would lead to the same result if not better.
However just to be fair the book would be good in terms of learning how to deal with issues related to implementing NPS, some ideas which you will find it repeated again and again for no reason ...
As the company I work for uses NPS (net promoter score), I figured reading a book about it would be useful and fill in some blanks. The "ultimate questions" in customer satisfaction is this: "would you recommend us to a friend?" The scale is 0 to 10, where the customers who tick in 9 or 10 are called promoters, the once who give 7 and 8 are called passives and the ones giving a score of 6 or below are called detractors. This is a score of excellence, because exactly how good does a company or rendered service have to be before you recommend it? I am a net promoter of only a handful of companies, but in turn I am unfailingly loyal to these. Besides, 80% of the customers who left a company for the benefit of competitor said they were "satisfied". So clearly the traditional methods of measuring customer satisfaction is not hitting the mark.
This book puts into words what I burn for every day - to give every customer a little something extra. It's not easy, I am bombarded with input and responding to everyone in a timely fashion can be difficult. I try though. The only service which gets remembered is that which was extra-ordinary and the bad. The merely "good" is quickly forgotten. So yes, I strive to be extra-ordinary and this book pats my back and tells me I'm on the right track.
The thing about measuring and closing the loop with customer is definitely something that could be improved though. Customer-centricity needs to be at the heart of everyone and not just one or two front-line employees. This is the only way to grow in the long run. The brilliant thing about NPS is that the score can be broken down into metrics and actual dollars. You can measure how much a promoter is worth or how much a detractor pulls you down. For this to happen, there has to be a large customer base responding to the question and honestly. NPS is brilliantly simple at the same time as it is nuanced and complex. The ultimate question touches the heart of whether customers are loyal or not. This is a book everyone who works toward other people should read. Unless you work in a basement with no human contact, you need to read this.
It is astonishing to realize how aligned are the leading management innovations nowadays. Agile Frameworks, Lean Six-Sigma, Lean Startup, Customer Development. Reads from these disciplines share many principles. In the core of them is customer centrism as the single main indicator of health in an organizations. These organizations focus on building systems that are continuously learning and improving towards the perfect (ideal) service and product.
Net Promoter Score and System is a sharp toolkit to help business achieve better results by doing good for their customers and employees.
Pros - a practical exposition on a really important CX tool, which can be used to help businesses set up their own NPS systems to get a better feel for customer satisfaction.
Cons: The useful bits of this book could be said in <100 pages, the rest is padding so the author could make a book out of it.
(The English review is placed beneath the Russian one)
Книга получилась невероятно нудной. Любой маркетолог согласится с тем, что рекомендации даваемые потребителями в отношении тех или иных брендов являются важным и значительным показателем, как силы бренда, так и успеха бизнеса (продающего или выпускающего данный бренд). Я до сих пор отчётливо помню, как об этом писал Котлер в своей книге «Маркетинг Менеджмент», где я впервые и увидел эту идею. Да и вполне логично, что это важный показатель, ведь именно так работает маркетинг молвы/слухов. Однако другой вопрос состоит в том, можно ли по этому поводу написать целую книгу? Как показал автор, это можно сделать, только вот важной и хорошей книгой для бизнеса (маркетинга) она не станет.
Проблема с этой книгой не в том, что априори нельзя написать хорошую книгу на такую тему, а то, что как очень правильно отметил один англоязычный читатель, автор книги не провёл никакого анализа успешности (или не успешности) компаний использующих предлагаемый автором подход. Что случилось с теми компаниями, чью продукцию покупатели рекомендовали, но которых это не спасло от банкротства, от провала бренда или просто от коммерческого неуспеха? Ведь успех компании или бренда определяется множеством факторов, а не одним единственным. К примеру, появившиеся инновация у конкурента может существенно повлиять на ваш бизнес или даже привести к его крушению, несмотря на большое количество людей рекомендующих ваш бренд или бренды.
В общем, в книге отсутствует всесторонний анализ авторского метода. Да, во многих других книгах (или даже в большинстве) авторы не сильно заморачиваются с доказательной базой предлагаемого ими метода или методов. Так что по поводу этой книги лучше всего сказать, что она просто плохо написана, и поэтому читать её скучно. В книге всё сводится к простому тезису, что, мол, добросовестно обслуживайте своих клиентов, и они расскажут о вас своим друзьям, что в итоге и принесёт вам успех. И, разумеется, присутствует в книге упоминание классического подразделения клиентов на адвокатов и террористов, имея в виду, что во втором случаи, бывшие клиенты стараются нанести компании (её имиджу) максимально возможный репутационный ущерб, рассказывая кому это только возможно, какой ужасной компанией она является и/или какой ужасный товар/услугу она предлагает. Это тоже довольно незначительное, хотя и важное наблюдение, которому обычно отводится одна глава или даже один абзац в любом классическом американском университетском учебнике по маркетингу.
Но главной проблемой всей книги является всё же бесполезность теории как таковой. Давайте представим себе человека, которого просят ответить на вопрос, какова вероятность, что он порекомендует бренд N своему другу? Если это бренд одежды, и мы спрашиваем об этом женщину, то она может ответить негативно, но не потому, что недовольна предлагаемым брендом (товаром), а потому, что она не хочет чтобы её подруги носили ту же самую одежду что носит она, ибо у человека, а особенно у женщин (в этом плане) есть желание быть уникальной. Мужчины же могут сказать, что да, они могут порекомендовать данный бренд друзьям, но на самом деле этого не сделают по причине малой важности данного события или действа. Другие могут заявить, что они конечно порекомендуют бренд, просто потому что захотят сделать приятное компании (или интервьюеру), но в реальности никому и ничего рекомендовать не будут. Или в совершенно другой ситуации, когда рекомендуемым брендом является продукты питания, проблема может состоять в том, что клиенту просто некому рекомендовать продукт как, например, если все его друзья являются вегетарианцами. Короче говоря, подумав ещё раз над этой темой, я пришёл к заключению, что этот метод и сам вопрос являются даже бессмысленными с точки зрения успеха бизнеса или важности их в качестве инструмента в маркетинге. Слишком много «но» у этого метода.
Поэтому вместо методики предлагаемой автором этой книги лучше не изобретать заново велосипед, а отдать предпочтение тому методу, который используют большинство компаний – короткая анкета с вопросами в стиле «довольны ли вы обслуживанием (товаром) и если нет, в чём причина и что бы вы хотели что бы компания улучшила». Этот метод очень прост, но эффективен и обращается непосредственно к опыту покупателя и тому, чем он может быть недоволен, и, следовательно, к тем ошибкам, которые совершила компания при обслуживании этого клиента (а возможно и других клиентов). К примеру, грубый персонал или быстрая доставка или широкий выбор или просто показатель того, что всё идёт хорошо.
The book was incredibly tedious. Any marketer will agree that the recommendations given by consumers about certain brands are a significant indicator of both the strength of the brand and the success of the business (selling or producing the brand). I still distinctly remember how Kotler wrote about it in his book “Marketing Management”, where I first saw this idea. And it makes sense that this is an important metric because that's how word-of-mouth marketing works. However, the other question is whether it is possible to write a whole book about it. As the author has shown, it can be done, but it will not be an important and good book for business (marketing).
The problem with this book is not that it is a priori impossible to write a good book on such a topic, but that, as one English-speaking reader very correctly pointed out, the author of the book did not conduct any analysis of the success (or not) of companies using the approach proposed by the author. What happened to those companies whose products were recommended by customers but (which) were not saved from bankruptcy, from brand failure, or simply commercial failure? After all, the success of a company or brand is determined by many factors, not just one. For example, an innovation from a competitor can significantly impact your business or even cause it to fail despite the large number of people recommending your brand or brands.
In general, the book lacks a comprehensive analysis of the author's method. Yes, in many other books (or even most) authors don't bother much with the evidence base of their proposed method or methods. So the best thing to say about this book is that it's just poorly written and therefore boring to read. The book boils down to the simple thesis that, say, serve your clients faithfully, and they will tell their friends about you, which will eventually bring you success. And, of course, the book mentions the classic division of clients into lawyers and terrorists, meaning that in the second case, former clients try to cause the company (its image) as much reputational damage as possible, telling whoever possible what a terrible company it is and/or what a terrible product/service it offers. This is also a fairly minor, albeit important, observation that is usually given one chapter or even one paragraph in any classic American university marketing textbook.
But the main problem with the whole book is the uselessness of the theory as such. Let us imagine a person who is asked to answer the question, What is the probability that he or she would recommend brand N to a friend? If it is a brand of clothing, and we ask a woman about it, she may answer negatively, not because she is dissatisfied with the brand (product), but because she does not want her friends to wear the same clothes that she wears, because humans, especially women (in this respect), have a desire to be unique. Men may say that yes, they may recommend the brand to their friends, but will not actually do so because of the low importance of the event or activity. Others may say that they will certainly recommend the brand simply because they want to do something nice for the company (or interviewer), but, in reality, they will not recommend anything to anyone. Or, in a completely different situation where the brand being recommended is food, the problem may be that the customer simply has no one to recommend the product to, for example, if all their friends are vegetarians. In short, after thinking about this topic again, I concluded that this method and the question itself are even meaningless in terms of business success or their importance as a tool in marketing. There are too many “buts” to this method.
Therefore, instead of the methodology proposed by the author of this book, it is better not to reinvent the wheel but to favor the method that most companies use - a short questionnaire with questions in the style of “Are you satisfied with the service (product) and if not, what is the reason and what you would like the company to improve”. This method is very simple but effective and speaks directly to the customer's experience and what they may be dissatisfied with and, therefore, the mistakes the company has made in serving that customer (and possibly other customers). For example, rude staff or fast delivery or wide selection or just an indicator that things are going well.
I first heard about NPS at an executive meeting at my previous company. Even with the high level explanation given during the presentation I knew it was something I needed to learn more about as it was obvious it could offer huge value.
This book is a simple to read all in one reference and guide for NPS, so I'd say the title is pretty accurate in the use of the word "ultimate".
The raw power and reach of social media is overwhelming any messaging that companies can hope to put forward. A simple measurement tool is essential to understanding the real perceptions of customers and how to make positive changes based upon their feedback.
The basis of the scoring system is really quite simple, ask one question to obtain a score, ask a second question to find out the primary reason why that score was given. The boilerplate question is something like "how likely are you to recommend our products and/or services to someone else?". The score is based upon 1-10:
1-6 are considered detractors 7-8 are considered passives 9-10 are considered promoters
As simple as this sounds, it's the management of the score results within the organization that represent the real challenge and can make or break the success of using NPS. This is where the real value of book shines, in the case studies and detailed explanations of how to make NPS work and stay working.
Another really interesting aspect of NPS is ENPS which is Employee Net Promoter Score, a scoring system used to measure employee satisfaction internally.
Both NPS and ENPS are significantly different from the mega surveys that take 20+ minutes to complete. Not only does NPS offer more value, but it is also far more likely to avoid survey fatigue and actually get a response. In my limited experience with NPS this is where I have seen the biggest mistakes made - stick with the massive surveys and coerce the data into a 1-10 score and call it NPS.
I highly recommend this book to anyone in a position to influence how customer satisfaction is measured and responded to.
A company I had previously worked for started to use NPS which is where I first saw this methodology. This book was recommended reading to get up to speed on the methodology. It seems like there is a new "thing" every few years. As a methodology, NPS makes a lot of sense and this book does a good job of laying explaining why becoming more customer centric is so important. The anecdotes from various companies on how they got started and who was assigned to head up the project was very interesting and useful.
My issue with the book is that it doesn't go much deeper than anecdotes from various companies. Additionally, it felt like the same points were repeated multiple times across the various chapters. I also would have liked to have a chapter or more dedicated on how to get started with NPS within an organization maybe for big and small companies along with the anecdotes that were provided with each company. There is also an interesting discussion about 'bad profits' which is a bit gray. There are some clear examples like sales people forcing products on customers who will eventually cancel and miscellaneous fees and lock in periods which customers don't like. From a customer's perspective, they should be removed however from a company's perspective, this is where the profits may be and eliminating these fees may require raising prices which will also make customers unhappy.
The Ultimate Question 2.0 is a nice introduction to NPS. Clearly companies need to become more customer focused and listen to what customers are asking them to do and using NPS as that catalyst is what makes this useful.
tldr: A shallow introduction to one of the most popular cx trends right now. Would greatly benefit from dropping the anecdotes and adding some actual science.
I have mixed feelings on this book. On one hand, it's a good (Although in my opinion too lengthy) introduction to NPS. It also is a great resource for those seeking to implement this methodology in their companies, as it goes to great lengths discussing what should be your approach when implementing the system (Closing the loop, etc...), creating a common language that helps talking about problems.
On the other hand this is an awful book if you are trying to find evidence on whether the metric is any good or not. The book claims that a lot of studies have been made linking NPS to customer satisfaction and purchase behavior, but it shares little on their results or methodologies. It acknowledges criticisms on the metric, but doesn't address them in a satisfying manner.
Finally I found the cases presented in the book incredibly simplistic, and most of them can be resumed as "Company was doing a bad thing, they used NPS to do a good thing and now everyone is happy". The last chapter containing some advices from practitioners was laughable and could be dropped entirely.
In conclusion I found the book pretty long for such shallow content, and it would have benefited a lot in exchanging most of their anedoctal data for actual science.
It is full of marketing bullshit and shallow preaching. It is extremely repetitive and can be easily be shortened twofold or even threefold.
There are parts that are obvious even to a 10-year-old: "More value for less money. Schwab reduced its prices aggressively. But instead of also reducing its services, it improved what customers reveived". What a surprising receipt for success!
The author either doesn't know about survivorship bias or preferes not to know. There is just a hint about NPS implementation not always working and this single failure is anonymous — "one global industrial firm" — while successes are carefully attributed.
However, the book turned out to be extremely thought-provoking for me. I've written an 8 page document with actionable items on analyzing satisfaction data, designing a new feedback system, connecting dev teams with customers and much more. We'll see how it goes, stay tuned at targetprocess.com :)
If you're wondering whether you need to read the previous iteration of this book AND this book the answer is no. This book contains everything from the first book and then some, at least as nearly as I can tell, having read both within weeks of each other. I would just get this book and ignore the earlier edition.
Now that we're done with that, this is a great business book. The general concept is quite simple--there's only one question that matters and so focus on that. The rest of the book just adds data, evidence, examples, and context. You already get the gist of it just by knowing what the question is. But the rest isn't merely fluff, it's interesting, useful, and practical for all companies from large to small. Unfortunately the book primarily focuses on large enterprises, but it is not at all difficult to figure out how to apply the principles and practices to the smallest company. I liked the book so much I'm starting a company based on it.
The Net Promoter Score stems from customer loyalty research at Bain. The premise is that in order to collect customer feedback to create a customer-centric organization, one question is sufficient("on a sale of 0-10, how likely are you to recommend us to a friend or colleague?"
This book outlines cases where this system has been used, pitfalls, etc. It's compelling to someone like myself who goes in with a bias leaning towards the system and ideology, and it walks through ways to help ensure that NPS deployment is a success and sufficiently resourced but I know that some of my colleagues who have also read this book aren't bought in so don't expect this to be a magi bullet.
I am in the camp that this isn't as perfect as a methodology as Mr. Reichheld would have you believe, nor do I believe that the examples covered are examples of truly using his system (Enterprise rent-a-car and others use a system that pre-dates it and is a bit different overall).
That said, who can argue with success? This is literally the #1 metric used by everyone from Microsoft to Chic-Fil-A and is even referenced by leaders like Satya Nadella, Stephen R Covey and others on a routine basis. If this one-question metric turned out to be garbage, I don't think it would be as widely adopted. That's not crowd theory gone wrong: businesses are quick to implement and abandon ideas when things don't work out. Yet this is being implemented far more than it's being unimplemented.
The danger is the effectiveness of this question long term (this book is 10 years old now and the concept is going on 15+) will start to erode as more of the people answering the question understand why people are asking it.
For example, maybe your experience at the Apple store was great but you'd like something free so you press on that your experience was bad to leverage a call with the store manager? I'm not crazy. Customers "in the wild," are as such.
I think this is a must-read on one premise alone: it's popular. It doesn't have to pertain to your situation or your business, but understanding it demystifies why your competition maybe using it, and it unravels other ideas that could work as effectively.
This is definitely a must-read for any entrepreneur or business leader.
This review is related to the book - not the system. I’m a fan of NPS and was looking for expert insights on the system as my reason for reading. It’s ironic that a book devoted to a simple customer sentiment measuring tool is so insecurely self-focused.
My main reasons for my rating: • Constantly selling/pitching NPS when I’ve bought into it and am looking for more • Name dropping with no reader value • Very repetitive in a manner that seems to assume the reader either didn’t get it or disagrees • Hinting at value withheld from the reader
I’ll explain my last bullet a bit. Chapter 9 starts off with describing a successful NPS user forum which meets annually that is attended by execs from well known companies. The author shares that these individuals still find new insights after years of attendance. The chapter continues to pitch the value of these physical and virtual meetings. As a reader, I don’t care about how happy these execs are. What I’d like is for someone to share with me some key takeaways, highlights, ah-ha! moments, etc. I’m sure Fred has some great insights. Maybe a podcast or interview would draw more out of him that I’d be interested in. A curious interviewer would naturally ask for the content that is teased but not disclosed.
Chapter 10 came off as very defensive. Mentioning the scholarly detractors and responding with defensive rationale doesn’t help to sell NPS. I’d recommend to just own what it is and is not without creating unnecessary doubt and confusion. It’s easy to just criticize, so I’ll offer a metaphor which may achieve this: NPS is a vital measurement for companies. Like blood pressure, it’s easy to measure, provides valuable information, and requires the context of other vitals to be most effective.
"On a zero-to-ten scale, how likely is it that you would recommend us (or this product/service/brand) to a friend or colleague?" Business loyalty expert Fred Reichheld explains how this single question can accurately reveal the health of your product, service, or brand. Based on their scores, your customers can be sorted into 3 distinct categories: Promoters (9-10), Passives (7-8), and Detractors (0-6). Net Promoter Score (NPS) = Percentage of Promoters - Percentage of Detractors. Detractors spoil your company's reputation and thereby sabotage future sales, while Promoters generate profits and growth. Bad Profits result from short-term, (and short-sighted), gains made at the expense of the customer's best interests and will cripple your NPS, while Good Profits are made as a result of serving your customer's best interests. Continuous improvement = timely customer feedback + prompt corrective action.
Written in a manner that is both easy to read and understand, unlike books such as Hustle and The Impact Equation with their fancy buzzwords and fluffy concepts.
The authors placed an intense focus on just one concept, instead of trying to push across a bunch of highfalutin ideas at the same time like so many other business books.
Some may argue that there's a lot of repetition as a result, but they serve to reinforce the points rather than act as fillers. The case studies cited were relevant and informative.
Uncannily, the negative reviews fit exactly the profile of detractors (especially those with vested interests) described in this book.
Have read this book twice and implemented NPS once using its advice. There’s probably no better guide to NPS than this.
That said, the book isn’t exactly well written. It’s accidentally repetitive in places (the same details about the same program mentioned more than once) and deliberately but unnecessarily repetitive in other places.
This is an example of a text that could shrink by 75% at the hand of a good editor and be better off for it. But then it wouldn’t meet the arbitrary standards expected of modern business books, so here it is, in all of its padded-out, repetitive, but still-useful glory.
Net Promoter Score is a great idea and the book does a good job of explaining how/why it works, and some of the benefits of implementing it and the pitfalls of doing so incorrectly.
Downsides (thus my 3/5 rating): First, this is one of those business books that was bloated far beyond the necessary length - would be twice as good if edited to half the length. Second, and more vexxing, downside is that the book dismisses critics/detractors with ad hominem attacks, vs addressing critiques directly.
Criticisms of methodology are valid, from a statistician's POV. This is definitely a sales tool to market the method.
That said, there is still good advice on company surveys and client relationships. We've already decided to use NPS methods for our client relationship survey, so I listened to the audiobook to learn how it was being used and interpreted. Advantage of this method is its simplicity when implementing a system from nothing.
This book had some great examples of applied, successful and failed NPS systems. However, there is a ton of repetitiveness and I truly believe the book could have been reduced by at least 40% by cutting out things that had already been discussed 1-2 times earlier in the book.
This book is a great read for anyone with manager status or higher, as one of the most recommended ways to get NPS to work is to have your executives on board!
Potentially a good idea, but the lack of actionable guidance is extremely evident and leads to an average at best rating.
I guess the most important takeaway from this book is that you should talk to your customers and "close the feedback loop". The majority of the book reads like a bunch of company reviews that almost always lack substance.
The major focus is motivation to use NPS. Lots of quotes from massive businesses who use it. And what they say about it. Some nice quotes. But I don't need motivation.
This book could have been 30 pages.
I'll implement NPS at our small business. But for practical implementation ideas search Google.
This book was recommended to me by someone I truly admire. It was fascinating to learn about NPS, how it can impacts organizations, and the challenges around it. I found it to be repetitive which lost some of my attention, but overall a lot of great things to keep in mind when working with organizations and businesses.
Great insight about the data driven basis for surveys. Used this information to help my company deliver more meaningful surveys... and learned what to do with the results. Great information for anyone that manages customer feedback, customer satisfaction, and surveys.
Bit of a sales pitch, but worthwhile for perspective on a frequently-used and simple customer satisfaction metric. I picked this up because NPS is frequently used in the healthcare sector, and I often design surveys for health plans using NPS.
I was interested in Net Promoter® score, so I read the book, which is a longer version of the original article. NPS is an interesting case study in simplicity, interpretability, paths to action, unintended consequences, and data collection.