NPS Blog

Category Archives: Loyalty economics

The calculations that give you a true understanding of the cost-benefit of investing in different segments of your customer base.

What to do when loyalty doesn’t translate into performance

Every now and then, we come across a situation where a company’s customers appear to love it, but where that love doesn’t translate into accelerated revenue growth. This can frustrate and confuse executives at these companies because their high Net … Continue reading

One number that says it all

This blog post originally appeared on LinkedIn.  Analysts use many yardsticks to predict the direction of a company’s stock price—price-to-earnings ratios, dividend payout ratios, EBITDA and so on. Some are so complicated: Try calculating a company’s weighted average cost of … Continue reading

Your customers aren’t yours

This post originally appeared on LinkedIn.  In certain businesses with limited competition or long-term contracts, executives can easily delude themselves into thinking they have captive customers. They might even be partly right: Many of their customers may use their services … Continue reading

What does an angry customer cost?

This article originally appeared on LinkedIn.  The byproducts of happy clientele are obvious. Sales rise. Stores fill. Facebook “likes” stream in. These promoters recommend the companies they like to their friends. The cost of detractors—a company’s “haters”—is less clear to … Continue reading

Would you recommend your doctor to a friend?

The UK’s National Health Service (NHS) recently joined the list of public sector entities that are turning to the Net Promoter Score to gauge the loyalty of their various constituents when it started asking patients in England and Wales how … Continue reading

Put your money where your mouth is: investing behind loyalty

The New York Times’ DealBook blog profiled a private equity firm this week that uses an increasingly popular yardstick to size up potential investment targets: Net Promoter Scores. Los Angeles-based Brentwood Associates looks for small- and medium-sized companies that have … Continue reading

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Never take your customers for granted

In certain businesses with limited competition or long-term contracts, executives can easily delude themselves into thinking they have captive customers. That is, until a major disruptive trend shatters this fantasy. And that always happens. In my latest post on LinkedIn, I discuss the … Continue reading

Airlines turn to NPS to cut customer turbulence

After irritating travelers with delays, oversold flights, baggage fees, dwindling amenities, poor communications and a host of other missteps, airlines are taking steps to earn back the loyalty of passengers. And several carriers use a Net Promoter system as their … Continue reading

The most toxic kind of corporate “waste”

This post originally appeared on LinkedIn.  In the suburb where I live, people regularly demolish 4,000-square-foot homes just because they’re a little outdated, clearing the way for new 8,000-square-foot estates. Everything goes into the dumpster— all the flooring, drywall, window, … Continue reading

Telstra’s Net Promoter system

A great example of a company’s leader using the Net Promoter system to develop a more customer-focused culture: Thodey has a way to go on customer satisfaction from the Australian newspaper The Age.      

BlackBerry: NPS is “the real litmus test for us”

In a slick ad during Sunday’s Super Bowl, BlackBerry made it clear what its new Z10 smartphone can’t do: Set people on fire, turn human legs into an elephant’s and cause a careening tractor trailer to explode into a wave … Continue reading

Why the Golden Rule is good business

This post originally appeared on LinkedIn.  The Golden Rule—treat others as you would want to be treated—is a pillar of most of the world’s great religions. It lies at the heart of secular ethics. It is an expression of the basic … Continue reading

A business where the ultimate goal is loyalty

Check out this item about a UK football (a.k.a. soccer) team—Birmingham City F.C. They are using Net Promoter to measure loyalty among first-time fans and attendees of corporate events. Loyalty is a pretty obvious element of any sports team’s business. … Continue reading

At call centers, a better measure of success

The traditional measure of success at many call centers is the average handling time (AHT), the amount of time it takes for an employee to address a customer’s problem. A short AHT quantifies how quickly the employee handled the issue, … Continue reading

The inventors’ delusion: Assuming everyone is just like you

Somewhere in a tech research a lab, an engineer is building what he considers to be the ultimate office gadget. He spent weeks designing the tool’s 65 features, which users can customize with a little programming. He’s sure it will … Continue reading