The Loyalty Effect laid out economics of loyalty, while Loyalty Rules! uncovered the importance of employee loyalty to win customer loyalty. Now, loyalty expert Fred Reichheld's most recent book, The Ultimate Question, offers the missing link of the metrics that hold employees accountable to generate loyal customers.
The key: elevating customer metrics to the same level of rigor and importance as financial metrics like revenue growth or return on equity. The best way to accomplish that? Using one simple question - How likely is it that you would recommend this company to a friend or colleague?
This single question allows companies to track promoters and detractors, producing a clear measure of an organization's performance through its customers' eyes-its Net Promoter® Score. Bain & Company analysis shows that sustained value creators-companies that achieve long-term profitable growth-have Net Promoter Scores two times higher than the average company. And NPSSM leaders outgrow their competitors in most industries-by an average of 2.5 times.