The Ultimate Questions
The Ultimate Question 2.0
The book Ultimate Questions 2.0 by Fred Reichheld covers a very important topic about measuring customer satisfaction that has helped many big businesses such as Apple, Intuit, Enterprise rent a car, Phillips, etc over the years and still is helping many other businesses around the world. Profitability is essential to all businesses but in this book the author does a great job of describing the difference between good profit and bad profit. From the analysis of good profit and bad profit the author describes customer satisfaction and how it can change the profitability of business drastically. To measure customer satisfaction, the author believes in the ultimate question which is would you recommend this company, or this product or service, to a friend or colleague? The author believes that this one question tells us more about a customer’s overall satisfaction that any other, and he has done extensive amount of research to back it up. The metric that is produces is the Net Promoter Score.
Net Promoter Score (NPS) is based on the fundamental observation that every company’s customers cluster into three groups. First, are the promoters, they are loyal customers who keep buying from a company and urge their friends to do the same. Promoter takes the time to respond to surveys, and they offer constructive feedback and suggestions. Next are Passives, they are satisfied customers but are not considered loyal and can be easily wooed by the competition. Lastly are the Detractors, they are unhappy customers trapped in a bad relationship and they can really bring a business down. Detractors bad-mouth the company to their friends and colleagues.
How do we determine which customers are promoters, passives, and detractors? To determine that, customers are asked to put the answer to the question on a relative scale of 1 to 10, 10 being the highest level. Those who give scores of 9 or 10 are called “Promoters”, those at 7 or 8 are
The book Ultimate Questions 2.0 by Fred Reichheld covers a very important topic about measuring customer satisfaction that has helped many big businesses such as Apple, Intuit, Enterprise rent a car, Phillips, etc over the years and still is helping many other businesses around the world. Profitability is essential to all businesses but in this book the author does a great job of describing the difference between good profit and bad profit. From the analysis of good profit and bad profit the author describes customer satisfaction and how it can change the profitability of business drastically. To measure customer satisfaction, the author believes in the ultimate question which is would you recommend this company, or this product or service, to a friend or colleague? The author believes that this one question tells us more about a customer’s overall satisfaction that any other, and he has done extensive amount of research to back it up. The metric that is produces is the Net Promoter Score.
Net Promoter Score (NPS) is based on the fundamental observation that every company’s customers cluster into three groups. First, are the promoters, they are loyal customers who keep buying from a company and urge their friends to do the same. Promoter takes the time to respond to surveys, and they offer constructive feedback and suggestions. Next are Passives, they are satisfied customers but are not considered loyal and can be easily wooed by the competition. Lastly are the Detractors, they are unhappy customers trapped in a bad relationship and they can really bring a business down. Detractors bad-mouth the company to their friends and colleagues.
How do we determine which customers are promoters, passives, and detractors? To determine that, customers are asked to put the answer to the question on a relative scale of 1 to 10, 10 being the highest level. Those who give scores of 9 or 10 are called “Promoters”, those at 7 or 8 are