Mehrwerk recommends: Webtalk “Net Promoter Score – Exchange of experience for users from all industries”

The Net Promoter Score (NPS) – perhaps the most influential management method of the last twenty years – came of age in 2021. Developed by Fred Reichheld in 2003, the Net Promoter Score concept is now a standard global management tool for ensuring profitable growth, customer focus and customer loyalty. At least 2/3 of the Fortune 1000 and an ever-increasing number of companies in Germany use NPS – both B2B and B2C. The power of NPS is also evident in the context of benefit programs and value-added services: recent multi-plant studies using NPS show that companies that successfully offer value-added services have 75% less churn and 45% more loyal customers.

Nevertheless, there is currently no relevant platform for users to share experiences and benchmark Net Promoter Programs such as scores. Many of the freely accessible figures and information are not reliable, very expensive and/or not compatible. In addition, many of the Net Promoter programs do not develop their actual potential.

“[…] While I am pleased that so many companies have embraced NPS, I am deeply troubled how badly most of them are implementing it.” (Fred Reichheld, Winning on Purpose, 2021, p. XIV).

Information on the date and registration

On Thursday, April 28, 2022, the German Dialog Marketing Association (DDV) is therefore organizing a webtalk on the topic of Net Promoter Score (NPS) together with Mehrwerk from 16:00 to approx. 17:30. Users and interested parties from all sectors will be able to discuss this topic and share their experiences. Further information and a registration form can be found on the official DDV website. Feel free to share this link with friends and colleagues who are interested in NPS! We look forward to meeting you!

You are not (yet) an NPS user, but are interested in more growth and revenue with loyal customers? Then just get in touch with me!

More about the Net Promoter Concept

“On a scale from 0 to 10, how likely is it that you would recommend company XY to a friend or colleague?”

More and more companies today are asking their customers this central question, based on empirical studies by Fred Reichheld, in order to classify their customers as promoters (scale value 9-10), passives (scale value 7-8) or detractors (scale value 0-6; originally detractors) and thus gain insights that are closely linked to the future growth of the company.

Promoters are loyal and enthusiastic customers who actively tell third parties about their positive experiences, buy again and again from the company in question and also advise their social circle to do the same. They therefore make a decisive contribution to the long-term growth of companies.

Passive customers are satisfied customers, but they are not actually enthusiastic about the company. They are more likely to be retained as customers due to their inertia than their loyalty or enthusiasm. They run the risk of migrating to the competition if they receive a better offer there.

Detractors, on the other hand, are disappointed, possibly even angry customers who have a poor relationship with the company and are anything but loyal to it. They run a high risk of telling others about their bad experiences and switching to the competition.

The pig does not get fat by weighing

The goal of a company can therefore only be that as many customers as possible are or become promoters and thus secure profits and company growth in the long term.

The Net Promoter Score (NPS), determined with the help of the above-mentioned recommendation question, shows the extent to which this goal has been achieved as the difference between the proportion of a company’s promoters on the one hand and the proportion of its detractors on the other. This makes the Net Promoter Score (NPS) an easy to calculate and understand strategic key figure that serves as an indicator of the quality of the customer relationship and the sustainability of the customer base.

At its core, however, it is not about the recommendation question or the score, because the “pig doesn’t get fat by weighing it”. The innovation lies in the conceptual approach of using a closed question to determine a strategic KPI for the temperature of the customer relationship. A subsequent “why question” is then used to identify the underlying causes of the evaluation, assign them to topics and company divisions, evaluate them and, if necessary, transfer them directly into operational and strategic improvement measures. The whole process should be carried out permanently on a broad basis and at all important touch points, including the loyalty of critics/detractors on an individual basis.

For an NPS program to create real sustainable value for a company, it is essential that both elements of the concept are established as a systematic process within the company: the score for management and the open question for change.

Do you already know the most important success factors of customer feedback programs, such as the Net Promoter Score? We have summarized the top 10 for you: The (powerful) Voice of the Customer – Customer feedback based management systems and programs: The 10 most important success factors