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      LinkedIn

      A Culture of Fanatical Customer Care

      A Culture of Fanatical Customer Care

      The creation of loyal promoters not only reduces customer acquisition costs, it improves retention rates and inspires employees.

      By Fred Reichheld

      • min read
      }

      Article

      A Culture of Fanatical Customer Care
      en

      This post was originally published on LinkedIn.

      I serve on the board of Rackspace, a young entrepreneurial company in the fiercely competitive cloud computing and managed hosting business.

      When Rackspace first approached me about serving on the board, I had never heard of the company. But an old business school professor of mine had. He lit up when I told him about the offer, noting that Rackspace had the lowest customer churn rate in its industry.

      That got my attention.

      Rackspace is a great example of a company that keeps customer churn low and loyalty high by using a Net Promoter System®. In Rackspace's case, it uses the system to measure and manage what it calls the "Fanatical Support" it offers customers.

      "The goal of Fanatical Support is to create customers who are promoters," explains CEO Lanham Napier. "Promoters recommend us to their friends, becoming an extension of our salesforce. Customers who are promoters are also more profitable, staying with us longer and buying more of our services…. The creation of loyal promoters not only reduces customer acquisition costs, it improves retention rates and inspires our Rackers [employees]."

      Companies from a range of industries, including Verizon Wireless, Virgin Media, Zappos, American Express and others, use Net Promoter systems to reduce churn and build loyalty, as my colleague Rob Markey and I explain in our book, The Ultimate Question 2.0. To see what a Net Promoter system looks like in action, check out this video.

      Net Promoter®, Net Promoter System®, Net Promoter Score® and NPS® are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

      Authors
      • Headshot of Fred Reichheld
        Fred Reichheld
        Bain Fellow, Boston
      Contact us
      Trailblazers Series: Rackspace

      In the competitive managed hosting space, Rackspace has achieved explosive growth with the help of the Net Promoter System®.

      More
      Why the Golden Rule is Good Business

      Treating people well is not only right, but profitable.

      More
      Don’t Try to Satisfy Your Employees

      The right goal is to put everyone in your company in a position where they can delight customers.

      More
      November 08, 2012

      How We've Helped Clients

      A Technology Company’s Transformation Restores Its Growth Trajectory

      Read case study

      Digital A Traditional Bank Pursues Digital in a Nontraditional Way

      Read case study

      Sales and Marketing A sweet new branding strategy

      Read case study

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      Net Promoter®, NPS®, NPS Prism®, Net Promoter System®, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., NICE Systems, Inc., and Fred Reichheld. Net Promoter Score℠ is a service mark of Bain & Company, Inc., NICE Systems, Inc., and Fred Reichheld.