Speaker 1: What is net promoter score or NPS? In 2003 Fred Reichelt wrote an article in the Harvard Business Review called the one number you need to grow. He was looking for a lens to predict a company's future growth and value, post tech bubble, pre GFC, in the disruptive world of online and digital media. His theory was that companies who were loved by their customers so much so that customers would happily recommend them are more likely to grow. The old chestnuts of market share, customer satisfaction surveys and financial models involved analysis paralysis and were not working anymore. The breakthrough is a very simple question which Reichelt dubbed the ultimate question which became the title of his book. The ultimate question is on a 0 to 10 scale how likely is it that you would recommend our product, service or brand to a friend or colleague. This score is then followed up with the simple open question. What is the primary reason for your score? The 0 to 10 scale captures the intuitive measurement of attitudes and feelings. The open question reveals the customers main reason for that score in their own words. No lies, no statistics. These results were then studied and benchmarked from which three categories of response emerged. Those scoring 9 or 10 signaled that their lives are enriched by the experience which led to future purchases, unsolicited referrals and great feedback. They are called promoters. Those scoring 7 or 8 got what they wanted but no more which meant they could be easily swayed by competitive offers and they made few referrals. They were called passives. The final group scoring 0 to 6 are detractors, reluctant purchases or customers who had a bad experience. They either switch or become a nuisance thus driving up the cost to serve. Percentage of promoters minus the percentage of detractors revealed a score that is as tangible as net profit is to bean counters and signaled a real measure of customer satisfaction and future growth potential. Reichelt called this net promoter score. NPS has proved to be a huge breakthrough in how customer satisfaction is measured globally and allows comparison of businesses in and across any industry anywhere in the world. It also gives prospective customers an impartial assessment of the service experience pre-purchase. From here a company can develop a plan on how to improve the score. This invariably involves breaking down and scoring each key customer touchpoint for your product, service or brand as often as possible. This is where the score in each step together with the plans to convert detractors and passives to promoters becomes a system by which one can improve customer experience. The beauty of NPS is its simplicity and Reichelt has three simple implementation guidelines. One, the results must be transparent, consistently compiled and communicated so your team can take action and track their results. Two, companies must create closed-loop learning and improvement processes and build them into daily operations. Bake the feedback into improving service and track the results. Three, CEOs and leaders must make creating promoters mission-critical. To learn how NPS is transforming customer experience at Macquarie Telecom go to macquarietelecom.com forward slash experience