What Not to Do With Net Promoter

Before leaping onto the net promoter bandwagon, it's worth taking a look at how others fall short and waste their money

The "net promoter" concept is deceptively simple and potentially very powerful. You don't need a PhD in quantitative methods to understand it (see BusinessWeek.com, 1/30/06, "Would You Recommend Us?"). In fact, everyone in your company can grasp this approach to measuring customer loyalty and linking it to company growth: How likely are your customers to recommend you to their friends and colleagues? Subtracting detractors (those who aren't likely) from promoters (those who are) gives you your "net promoter score," which Fred Reichheld, author of The Ultimate Question: Driving Good Profits and True Growth, writes is the "single most reliable indicator of a company's ability to grow."

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