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One magical question - the so-called ultimate question - and one simple formula - the well-known Net Promoter Score - are the ultimate measures of customer satisfaction and the ultimate predictors of a company's future success.
These are the assertions in the book The Ultimate Question by Fred Reichheld, a Bain & Company consultant. The same assertions are repeated and expanded upon in a following book, The Ultimate Question 2.0, by Reichheld and Rob Markey, also a Bain consultant. They argue that the ultimate question and NPS drive extraordinary financial and competitive results.
Many chief executives have read these books, heard them discussed at conferences, or listened in on comments about them from other senior executives. The books, the publicity, the conferences, and the favorable press have elevated NPS to almost mythical status, the holy grail of business success. But is there really one ultimate question? Is NPS really the ultimate predictor of success?
The ultimate question is: How likely is it that you would recommend this product, service, company, etc. to a colleague or friend? The answer scale is 10-to-zero, with 10 defined as extremely likely to recommend, and zero is defined as not at all likely to recommend.
The NPS is calculated from the answers to the 10-to-zero scale. Those with 10 and nine ratings are grouped together and called promoters. Respondents with eight and seven ratings are called passives, and those who give a rating of she or below are called detractors. The NPS formula is the percent classified as promoters minus the percent classified as detractors.
Here are some observations about the ultimate question and NPS. Lets start with the positives, and then move to the negatives.
Positives
The question itself is a good one. It's clear and easy to understand.
The 10-to-zero rating scale is widely used and generally accepted as a sensitive scale (i.e., it can accurately measure small differences from person to person).
The labeling of the scales...