October 11, 2007
Are you a Net Promoter?
No, we're not talking about a new plugin for WhatsUp that advances the careers of network administrators (WhatsUp does that well enough without plugins), we're talking about a number that Harvard Business Review modestly called, "The One Number You Need to Grow" This number is so popular and important, it has its own book and even its own conference in Miami this winter.
What is this number? Unlike Avogadro's number, this number, the Net Promoter Score, is different for every company and can even change over time. Just ask your customers if they would recommend you to friends or colleagues, and have them rate the likelihood from 1 to 10. Take the 9s and 10s and subtract from them the 1s through 6s, and that's your Net Promoter Score, or NPS.
People who put a lot of stock in this, and there are a lot of them, claim that your NPS is more predictive of your corporate success than all kinds of fancy statistics. People who don't have their own side of the story, too. I'm not so sure I buy into the particular methodology, but I know that it's a decent proxy of customer loyalty, and most businesspeople seem to agree that you want to try and increase that.
Posted by David Karp
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