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Understanding the System
Understanding the System
  • About NPS
    • About NPS

      • Understanding the System
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      Recommended reading: A collection of our best thinking
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      Understanding the System
      • Overview
      • Leadership
      • Reliable Metric
      • Inner Loop
      • Huddles
      • Outer Loop
      • Employees
      • Infrastructure

      The System

      Sustained Leadership Commitment

      Sustained Leadership Commitment

      The senior leadership team must embrace NPS® and customer loyalty as mission-critical priorities.

      Companies using the Net Promoter System can vastly improve the customer experience and boost loyalty, growth and profitability. But there's one essential condition: The senior leadership team—especially the CEO—must embrace the goal of creating more promoters and fewer detractors as a mission-critical priority.

      Leadership and NPS

      Leadership and NPS

      Net Promoter® CEOs have three key concerns.

      • Strategic priority and vision
      • Leadership behaviors and communications
      • Customer-oriented decisions

      Strategic priority and vision

      Employees naturally want to delight customers, and they feel great when they can do so. But they must do it in economically rational ways. (it's easy to delight customers by giving things away.) The CEO and CFO must understand loyalty economics and ensure that the organization has the tools for making appropriate trade-offs when necessary.

      The Net Promoter System also requires confronting "bad profits." If a company is making money by exploiting its customers—for example, by tacking on hidden service fees—employees will see the double standard. Without the full commitment of senior leaders, the business is unlikely to make a high-impact near-term revenue or profit trade-offs that benefit long-term growth and profits.

      Leadership behaviors and communications

      Net Promoter System leaders need the right skills, experience, personal qualities, and energy. At the highest levels, someone who is broadly respected and trusted across the organization can set and reset priorities as needed. That person should report directly to the CEO or an important business unit's general manager. And he or she must have earned the respect of other senior leaders in the company.

      Employees at most companies have seen initiatives come and go. But the Net Promoter System isn't a tool or a program; it's a way of running a company. Without visible signs of serious commitment at the top, many employees will conclude that NPS is just another flavor of the month. Visible, symbolic action often jolts the skeptics into realizing that the leadership team is serious. Timed appropriately, these dramatic actions can help sustain focus and instill confidence in the mission of earning enthusiastic loyalty from customers.

      Customer-oriented decisions

      The Net Promoter System affects virtually every aspect of a company. Finance, operations, marketing, and other departments traditionally have differing goals and incentives, but now they must work closely together. Senior leaders may need to change organizational and incentive structures to facilitate this kind of cooperation. For example, many Net Promoter System companies have found it necessary to remove or change incentives based on process metrics such as average handle time in call centers, because they conflict with the mission of doing what is right for customers.

      Recommended Reading

      Recommended Reading

      • Leading a Net Promoter System Company

        Net Promoter is a powerful method of running a company, but it requires leaders who understand their job in an entirely new way.

      • Who Should Run Your Net Promoter System?

        Gritty, passionate executives are key to implementing a Net Promoter System effectively.

      • The Essential Role of a Customer Advocacy Office

        It takes more than a CEO to create a customer-centric business.

      The System

      Learn more about loyalty economics and the Net Promoter ScoreSM

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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.