Fred Reichheld on bringing his dream, NPS Prism, to life

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The Winning on Purpose author team, Fred Reichheld, Maureen Burns and Darci Darnell discuss the origins of NPS Prism.
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Hey Fred,

Long story short: I was writing a blog post about customer retention, and over and over, I found people citing a variation of the same stat "Only a 5% increase in customer retention can increase company revenue by 25-95%".

And when I mean everywhere, I mean it's EVERYWHERE. Hubspot, Shopify, Mailchimp, Forbes, Time, Harvard Business Review - all just saying the blanket statement above.

But when I tried to find the source, it took me about 45 minutes until I found the source, and I was pretty shocked to find it was from your article "Zero Defections: Quality Comes to Services, " published over 32 years ago.

After seeing how you feel the NPS score is misused, I assume you also will feel it's pretty irresponsible for over 4.8k sites to be linking to a customer retention study done in 1990 like it still universally applies to all businesses today.

The original study is fascinating, but I would love to hear your thoughts on customer retention's impact on revenue & profit in 2022.

Is this number likely more extreme? Or less with all of the attention split around the digital universe?

I'd love to hear your thoughts, thanks!

richardgarvey