Fred Reichheld in Seven

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1. What business need led you to create the Net Promoter Score (NPS) and how long did it take you to determine the measurement?

The goal was to help firms improve customer loyalty – to create an operational tool that every employee could understand and use. It took several years of research and development; we asked thousands of customers, across a dozen industries, to score a variety of survey questions. We then examined the subsequent loyalty behaviours for each customer. It revealed the power of ‘likelihood to recommend’ (LTR) and the best way to categorise responses – promoters, passives, detractors. 

2. Since you launched NPS, do you think companies have become more, or less, focused on the link between customer loyalty and profits generated?

I see quite a bit of progress. Once companies have identified promoters in a key segment of their customer base, they can compare factors like revenue growth and margins, for those promoters, compared with ...