Answering the Ultimate Question: How Net Promoter Can Transform Your Business

Introduction ix

1 Net Promoter Fundamentals and Operating Model 1

A Net Promoter Primer 1

Why Traditional Approaches Fail 3

Net Promoter: Key Tenets 10

The Net Promoter Operating Model 17

Putting It Together: Implementing the Operating Model 23

2 Using Customer Economics and Segmentation to Maximize Loyalty 25

Quest for Customer Intimacy 26

Segmenting for Optimal Results 27

Calculating Return on Promoters 34

Estimating the Impact of Word of Mouth 44

Conclusion 56

3 Driving Change: Instill Customer-Centric DNA 57

Why Discuss Change Management? 57

Aligning the Organization 61

Getting Senior Leadership Committed 62

Getting the Front Line Aligned 66

Goal Setting in the Context of Change Management 71

Program Governance Model 77

Conclusion 88

4 Designing an Enterprise Roadmap 89

Customer Solutions 90

Relationship Versus Transactional Survey Processes 94

The Customer Corridor and Its Touch Points 97

Employee Solutions 103

Phased Versus Big Bang Approach 109

Sequencing Your Roadmap 111

Conclusion 118

5 Building Trustworthy Data 119

What is Trustworthy Data? 120

Creating the Strategy: Three Key Elements 121

The Right Customers: Measuring Who Matters 122

The Right Question: Choosing the Right Metric 128

The Right Questions: Fitting Survey Strategy to the Business 131

Determining the Right Time to Measure 143

Other Considerations 149

Conclusion 159

6 Determining the Root Cause of Promoters and Detractors 161

Common Analytical Approaches 162

Stated Driver Analysis 162

Inferential Driver Analysis 178

Comparison of the Tools 187

Conclusion 189

7 The Closed-Loop Process 191

Defining Closed-Loop Excellence 192

Action at All Levels 202

Closing the Loop at the Front Line 204

Case Study: BearingPoint Closes the Loop at the Account Level 214

Closing the Loop at the Management Level 218

Closing the Loop at the Executive Level 223

Accountability at All Three Levels 226

Conclusion 228

8 Setting Realistic Targets and Improvement Strategies 229

Relative Performance 229

Cultural Differences 234

Compensation 241

Improvement Time Frames and Rhythm 247

The Methodology for Setting Targets 248

Conclusion 250

9 Innovation Drives Transformation 253

Technology Enables Transformation 254

Operational Improvements and Innovation 258

Developing Brand-Focused Communities 264

Identifying NetWorked Promoters 274

Conclusion 281

Resources: Interviews Conducted 283

References 291

Acknowledgments 295

The Authors 297

Index 299