How Do Your Customers Answer the “Ultimate Question”?
When Fred Reichheld wrote The Ultimate Question, he argued that the best way to drive strong revenue growth and return on equity, was by using the simple question "How likely is it that you would recommend this company to a friend or colleague"? This question, goes right to the source of your business, the perceptions of the customer. According to Bain & Company analysis, "NPS(Net Promoter Score) leaders outgrow their competitors in most industries—by an average of 2.5 times" (1).
Do you know how likely your customers are to recommend your product or service? Recommendations from friends or colleagues are much more effective than almost any company marketing message. What does your company do to encourage recommendations? Do you have a remarkable return policy like Zappos which allows returns within 365 days and provides free shipping both ways? Does your product's unique selling proposition blow the competition out of the water, like the BlendTec blender which can turn an iPhone into dust within seconds? People usually don't tell their friends, family, or colleagues if they are satisfied with their purchase. They usually recommend products that are exceptional, or provide over the top value.
Social technologies like Facebook or Twitter are empowering customers to be able to communicate faster and easier than ever before. The Ultimate Question, was written in 2006, before almost everyone had a Facebook account and before Twitter started. Rather than having to be physically with a friend or on the phone, to recommend or detract a brand, anyone can now go on Twitter and Facebook and send a message instantly to hundreds of people. If Net Promoter Score was important before, just imagine how social technologies are affecting the influence of promoters and detractors. I can send a text message from my mobile device, and my Tweet will be sent out to 200 followers. This has scary implications for companies - if your product is average or worse. But if your offering is exceptional, this can also be a great opportunity to engage your customers to market your products for you.
The Companies With the Top Net Promoter Scores (Mar 30, 2009 Brandweek)
1. USAA
2. Apple
3. Amazon.com
4. Costco.com
5. Google
6. Facebook
7. Wikipedia
8. eBay
9. Craigslist
10. Barnes & Noble (bn.com)
1. The Ultimate Question Website
Photo by ninjanoodles
This article was republished with permission from The Executive Marketing Blog
Related posts:
