| Loyalty Management Program |
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Customer Loyalty - by Frank Friend The NPS concept rests on the fact that customers are unlikely to recommend your company to their friends and colleagues unless they are happy with your products and services – people don’t dump on their friends! The NPS is developed by asking customers one simple question – “The Ultimate Question” as Fred Reichheld (Bain Consulting) the developer of the NPS calls it. Net Promoter Score (NPS) The NPS concept rests on the fact that customers are unlikely to recommend your company to their friends and colleagues unless they are happy with your products and services – people don’t dump on their friends! The NPS is developed by asking customers one simple question – “The Ultimate Question” as Fred Reichheld (Bain Consulting) the developer of the NPS calls it. “How likely is it that you would recommend this company to a friend or colleague?” Usually the question is scored on a 1 – 10 scale where 0 = “Not likely at all” and 10 = “Extremely likely”. The NPS is the difference between the percentage of customers who scored 9 or 10 and those who scored 0 to 6. The average US company has an NPS of less than a positive 10. An NPS of 40 would be great, 60 would be super and 80 + WOW! Reichheld’s research has shown that the NPS is a reliable indicator of a company’s future growth – the higher the NPS the more likely it is that the company will enjoy secure growth, so by asking this one simple question you can get a pretty good idea of the how well, or poorly, your company is performing. Want additional information regarding Customer Loyalty Strategies? Develop a Customer Loyalty Project!
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