Are you using NPS? | Issue #197
8 common mistakes companies make with NPS (and how to fix them)
Net Promoter Score. Do you use it? It’s one of our top recommendations to clients who, like us, are obsessed with service. In 2003 Fred Reichheld wrote his seminal HBR article ‘The One Number You Need to Grow’, where he launched NPS into the world. Since then, it’s grown to become one of the best metrics for customer engagement out there. It’s simple, easy to implement and effective. Better still, it will predict your business’ organic growth.
Back in January, I interviewed Fred for our Melting Pot podcast – a conversation that’s well worth a listen. He told me that the difference in NPS of two competing companies explains 85% of the migration between suppliers in an industry. That’s a significant predictor!
NPS is a powerful tool – no doubt about it. So why do so many businesses fall at the first hurdle when introducing it? NPS is the most misunderstood of all the business growth tools we recommend. Only last week, I read about a business that quoted their NPS as 41.6. Another quoted it as a percentage. Both of these are plain wrong. They smack of lazy ignorance and a total lack of understanding.
So what are the most common mistakes we see with NPS?
What Do You Need to Do Your Best Work with David Lancefield
What do you need to do your best work? That is the question David Lancefield strives to find the answer for with his clients in his role as CEO catalyst, strategist and coach.
What does that mean? It means David works with CEOs, senior professionals and executives, helping them become more extraordinary, by focusing on strategy, innovation, leadership and culture.
In this episode of The Melting Pot, David talks us through how leaders can set priorities and how a new leadership team comes together to agree on the things that the team needs to do in order to move forward.
This is a fascinating episode packed full of insights, so make sure to download and listen.
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News from the farm
‘Scaling Up’ Bootcamp with Verne Harnish and Dominic Monkhouse
Limited to 10 CEOs and their #2s, it’s an extremely valuable opportunity to spend small group time with the author of Scaling Up, Verne Harnish, and business coach Dominic Monkhouse for three intense days of learning, sharing, and fun at the unspoiled and elegant Lucknam Park Hotel & Spa, near Bath (UK).
You will work one-on-one with Verne, and get exclusive access to his network and knowledge to help you achieve a major leap in your business.
Join us from 12-15th September, and leave with a clear action plan to grow your business over the next decade.
Only a few spots left
MEANINGFUL ACTION FOR MONDAY
Think about your strategic positioning
Given your current positioning, write down 20 things you think are true about your company. That is, how you show up in the global market.
I bet almost none of them are true or unique. Your positioning should be so unique that you ideally have no more than 20 competitors globally and no more than two thousand prospects in your marketplace. If the numbers you pull out are bigger than that, you have not positioned yourself sufficiently to be a global leader.
I’ve thought about it after a recent interview with Hermann Simon for the podcast (episode coming out soon). He talked about hidden champions. Those are businesses around the world that are up to 5 billion dollars in turnover and number one in the world at what they do.
Upcoming events
Business Strategy Online Course – Harvard Business School
Business Strategy is an online course that enables anyone to think and act strategically. You’ll learn an effective, easy-to-grasp framework that some of the world’s best companies use to create value and achieve outstanding financial performance.
Taught by Professor Feliz Oberholzer-Gee, the Business Strategy features six weeks of content and weekly exercises, enabling the opportunity to put learning into practice. Participants will learn how to evaluate trade-offs and align, prioritize, and formulate strategic initiatives for the greatest business impact.
Quote of the week
“If you wonder what getting and keeping the right employees has to do with getting and keeping the right customers, the answer is everything.”
Fred Reichheld
Dominic Monkhouse
Dominic offers business coaching and management development, strategy planning and organisational change, using tried and tested methods to launch your organisation onto an unparalleled growth trajectory. His programme is a function of his broad experience, his deep expertise and a proven process used by over 2,700 firms worldwide.