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Net Promoter Score: Too Simplistic or Simply Genius?

Posted By Jeff Moad, May 07, 2012 at 5:25 PM, in Category: Next-Generation Leadership and the Changing Workforce

At last week's Manufacturing Leadership Summit, several executives I spoke with said their companies have latched onto the Net Promoter Score as a core metric used in managing their businesses. NPS seems to be particularly popular among high tech manufacturers these days.

The idea behind NPS, developed by author Fred Reichheld, couldn't be more simple. You survey your customers using one question: How likely is it that you would recommend [company x] to a friend or colleague?" Responses are collected on a scale of 1-10, with 10 representing the strongest positive response. To get your NPS, just subtract the number of detractors (those providing responses between 0 and 6) from promotors (those providing responses of 9 or 10.)

Reichheld and others claim a strong correlation between companies with high NPS scores and those showing faster growth.

What's been your experience with NPS? Can it be an important metric? What processes need to be in place to make NPS work?



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Written by Jeff Moad

Jeff Moad is Research Director and Executive Editor with the Manufacturing Leadership Community. He also directs the Manufacturing Leadership Awards Program. Follow our LinkedIn Groups: Manufacturing Leadership Council and Manufacturing Leadership Summit



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