#31—Fred Reichheld: How Companies Can Recapture the True Value of the NPS

Fred Reichheld is the creator of the Net Promotor Score (or NPS). He is a Bain Fellow and the founder of their Loyalty practice, which helps companies achieve results through customer and employee loyalty. His work in the area of customer and employee retention has quantified the link between loyalty and profits. He's authored numerous best-selling books including The Loyalty Effect, Loyalty Rules!;  and The Ultimate Question 2.0: How Net Promoter Companies Thrive in a Customer Driven World. His work has been widely covered in outlets like The Wall Street Journal, New York Times, Financial Times, Fortune, Business Week and The Economist.  Consulting Magazine  chose Fred as one of the “25 Most Influential Consultants”. According to The New York Times, "[He] put loyalty economics on the map." The Economist refers to him as the "high priest" of loyalty. This episode covers key take-aways from his most recent book: Winning On Purpose: The Unbeatable Strategy of Loving Customers. In this podcast he shares: How too many companies misuse—even abuse—NPS Lessons from companies like Apple Retail, Philips, Schwab, Allianz, American Express, and Intuit who get it rightWhy our historical view on capitalism is fading and why the emerging concept of capitalism will lead you to being truly customer-centric Why focusing on investor returns or even employee happiness is short-sighted And why establishing and truly living a core purpose is fundamental to your company’s long-term success __________________________________________________________________________________________-Fred Reichheld__________________________________________________________________________________________Episode Timeline:00:00—Introducing Fred Reichheld + The topic of today’s episode2:07—What made you revisit your idea of NPS?2:47—How are companies misusing NPS?3:54—Why do the ideas about focusing on various themes that aren't centered around the customer, never work out?5:25—Can you define the golden rule?6:22—How do you overcome the resistance to the language of what many consider "soft skill" language?8:28—What metrics should we be starting to embrace?11:10—Can you give us an indicator or metric that can help us gauge how much we're learning?12:54—What is the role of culture and values in this topic?15:40—Could you explain how capitalism fits into all of this?17:01—How can people follow, find and learn from you?__________________________________________________________________________________________Additional Resources: Company page: https://www.bain.com/our-team/fred-reichheld/Twitter: https://twitter.com/FredReichheldLinkedIn: https://www.linkedin.com/in/fredreichheldNewest Book: https://www.netpromotersystem.com/books/winning-on-purpose/Thank you to our executive producer Zach Ness, our producer Nazanin Homayoun Jam and our editor James Pearce. If you enjoyed this episode, please follow, download, and subscribe. I’m your host, Kaihan Krippendorff—thank you for listening.Follow us at outthinker.com/podcast