The Net Promoter Score (NPS) was created by Fred Reichheld, a consultant at Bain & Company, in collaboration with Satmetrix, a software company. It was first introduced in his 2003 article, "The One Number You Need to Grow," published in the Harvard Business Review.
Why did Fred Reichheld popularize NPS as an open solution?
1. Simplicity and Universal Adoption:
Reichheld believed that traditional customer satisfaction surveys were too complex and ineffective for driving actionable insights. By creating a simple, intuitive metric, he aimed to make it widely accessible to organizations of all sizes and industries.
2. Focus on Growth and Customer Loyalty:
Reichheld saw NPS as a practical tool to link customer loyalty with business growth. By sharing it openly, he encouraged businesses worldwide to shift their focus toward long-term relationships with customers rather than just short-term profits.
3. Collaborative Improvement:
By making NPS open and transparent, Reichheld encouraged companies to refine and adapt the methodology, leading to broader innovation and improvement in measuring customer experience.
4. Wider Adoption Equals Greater Impact:
Establishing NPS as an open, non-proprietary framework allowed it to become a global standard. This helped Bain & Company and Reichheld gain credibility as thought leaders in the field of customer loyalty without restricting usage through intellectual property constraints.
This open approach contributed significantly to NPS's widespread use and its reputation as one of the most reliable metrics for assessing customer loyalty.
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