Answering the Ultimate Question

The AuthorsRICHARD OWEN is CEO of Satmetrix. Satmetrix was instrumental in developing the concept of Net Promoter and is dedicated to helping organizations apply and benefit from this revolutionary approach using innovative technology and services. LAURA BROOKS, PhD, is vice president of research and consulting at Satmetrix. She is the acknowledged expert in applying the Net Promoter discipline at an operational level. Brooks has conducted and published over thirty studies on Net Promoter, customer loyalty, and word of mouth marketing.

"... this detailed and lengthy book... looks at ways in which companies' NPS ratings can be improved." (Research Magazine, February 2009) "The book covers the core process of capturing accurate data, using the results to investigate internal and customer-facing processes." (Quality World, September 2010)

• Introduction ix1 Net Promoter Fundamentals and Operating Model 1A Net Promoter Primer 1Why Traditional Approaches Fail 3Net Promoter: Key Tenets 10The Net Promoter Operating Model 17Putting It Together: Implementing the Operating Model 232 Using Customer Economics and Segmentation to Maximize Loyalty 25Quest for Customer Intimacy 26Segmenting for Optimal Results 27Calculating Return on Promoters 34Estimating the Impact of Word of Mouth 44Conclusion 563 Driving Change: Instill Customer-Centric DNA 57Why Discuss Change Management? 57Aligning the Organization 61Getting Senior Leadership Committed 62Getting the Front Line Aligned 66Goal Setting in the Context of Change Management 71Program Governance Model 77Conclusion 884 Designing an Enterprise Roadmap 89Customer Solutions 90Relationship Versus Transactional Survey Processes 94The Customer Corridor and Its Touch Points 97Employee Solutions 103Phased Versus Big Bang Approach 109Sequencing Your Roadmap 111Conclusion 1185 Building Trustworthy Data 119What is Trustworthy Data? 120Creating the Strategy: Three Key Elements 121The Right Customers: Measuring Who Matters 122The Right Question: Choosing the Right Metric 128The Right Questions: Fitting Survey Strategy to the Business 131Determining the Right Time to Measure 143Other Considerations 149Conclusion 1596 Determining the Root Cause of Promoters and Detractors 161Common Analytical Approaches 162Stated Driver Analysis 162Inferential Driver Analysis 178Comparison of the Tools 187Conclusion 1897 The Closed-Loop Process 191Defining Closed-Loop Excellence 192Action at All Levels 202Closing the Loop at the Front Line 204Case Study: BearingPoint Closes the Loop at the Account Level 214Closing the Loop at the Management Level 218Closing the Loop at the Executive Level 223Accountability at All Three Levels 226Conclusion 2288 Setting Realistic Targets and Improvement Strategies 229Relative Performance 229Cultural Differences 234Compensation 241Improvement Time Frames and Rhythm 247The Methodology for Setting Targets 248Conclusion 2509 Innovation Drives Transformation 253Technology Enables Transformation 254Operational Improvements and Innovation 258Developing Brand-Focused Communities 264Identifying NetWorked Promoters 274Conclusion 281Resources: Interviews Conducted 283References 291Acknowledgments 295The Authors 297Index 299