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.
English NLP trainer Andy Smith shares with you useful tips and principles from NLP that you can use to get clear on what you really want, accelerate your success, and be more effective in your work, life, and relationships.
It’s Time to Reimagine Employee Retention
This is a challenging time for managers. Alongside their day-to-day roles, many are facing a never-ending cycle of reskilling and recruiting on their teams. The need to reskill isn’t new, with the OECD estimating that 1.1 billion jobs are liable to be radically transformed by technology in the next decade. However, managers are now being asked to close the skills gap at the same time as they’re responding to pandemic-prompted resignations.
What Makes a Great Executive Retreat
After a two-year hiatus, the annual executive retreat is making a comeback. In theory, the CEO gathers company executives off-site to focus on strategy, and the team returns with clear goals and a sense of camaraderie. In reality, wall-to-wall PowerPoint presentations are often the order of the day. Information flows in one direction, followed by improvised, open-mic Q&As.
Kids of Working Moms Grow into Happy Adults
In earlier research, Kathleen McGinn and colleagues discovered that adult kids of working moms are high achievers at work. Now it turns out they are happy, too.
Exactly What To Say by Phil M Jones
Often the decision between a customer choosing you over someone like you is your ability to know exactly what to say, when to say it, and how to make it count. Phil M. Jones has trained more than two million people across five continents and over fifty countries in the lost art of spoken communication. In Exactly What to Say, he delivers the tactics you need to get more of what you want.
The Amazon Way by John Rossman
The 3rd edition of The Amazon Way is one of the rare business leadership books giving actionable insights for innovation and business growth to be the basis for your digital transformation gameplan. The Amazon Way translates Amazon’s unique culture and management practices into insights and opportunities, as only an Amazon executive and expert advisor could do for the Amazon Leadership Principles giving readers one of the essential business leadership books for the digital era. Peppered with humorous and enlightening firsthand anecdotes with Jeff Bezos from the author’s career at Amazon, this revealing business guide is also filled with the valuable lessons that have served Jeff Bezos’ “everything store” so well—providing expert advice for aspiring entrepreneurs, CEOs, and investors.
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.
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 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.