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Beyond the Ultimate
Question Resources
Business growth depends are more than
asking a single question. Challenging the widely touted NPS®
claims, Bob E. Hayes, Ph.D., author of
Beyond the Ultimate Question: A Systematic Approach to Improve Customer Loyalty,
provides compelling evidence that, to grow their business, companies need to look beyond this simple metric to efforts on
improving the entire customer feedback program (CFP). Learn about the NPS
debate, the measurement of customer loyalty and the critical elements of
customer feedback programs.
For in-house
training or other consultation needs, please contact Bob Hayes at
bob@businessoverbroadway.com.
Customer Loyalty Indices vs. NPS
 Research has shown that the Net Promoter® Score (NPS; likelihood to
recommend) is no more predictive of business growth than other commonly used
customer loyalty questions (e.g., overall satisfaction, likelihood to purchase).
Why? Despite these
questions' apparent differences, they are really measuring the same thing,
advocacy loyalty. In fact, the NPS is deficient in measuring other important
components of customer loyalty: purchasing loyalty and retention loyalty.
Customer loyalty consists of three components, advocacy, purchasing,
and retention. Each component of customer loyalty provides unique and
useful information regarding future business growth.
Learn more about the pitfalls of the NPS and the meaning of
customer loyalty in this free article in Quirks Marketing Research Review:
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Customer Loyalty 2.0:
The Net Promoter Score debate and the meaning of customer loyalty (Quirk's
Marketing Research Review; October 2008).
Customer Loyalty 2.0 Metrics
 Customer Loyalty 2.0 represents the advancement in the
measurement and meaning of customer loyalty.
We have developed three robust, reliable measures of customer loyalty that
predict different types of business growth.
By measuring these three
components of customer loyalty, companies are better able to manage their
customer relationships to maximize growth through new and existing
customers.
Advocacy Loyalty Index (ALI):
What
makes your customers become advocates for your company? The
ALI measures the degree to which customers are likely to
advocate your company.
Purchasing Loyalty Index (PLI):
How can you increase the purchasing behavior of your
existing customers? The PLI measures the degree to which
customers will increase their purchasing behavior.
Retention
Loyalty Index (RLI):
How can you decrease churn of your
existing customer base? The RLI measures the degree to which
customers will leave you for your competitors.
Learn more about the measurement of
customer loyalty in this free article in Quality Progress:
Customer Research
The book,
Beyond the Ultimate Question, identifies that the key ingredients to a successful customer feedback program
include:
Customer Feedback Programs Self-Assessment Survey
Take our
free self-assessment
survey to see where your company's program fares with respect to their
customer feedback program. This self-assessment tool is designed to help you
understand the extent to which your company adopts CFP best practices. Learn
more about this free self-assessment tool
here.
Customer Feedback Programs Best Practices Award - 2009
Using criteria
outlined in the book, Beyond The Ultimate Question, the B.O.B.
Customer Feedback
Programs Award is designed to honor and recognize companies that demonstrate best
practices in their customer feedback program and adopt innovative ways to
improve the customer experience. Nominations for the 2009 award must be
received by December 18, 2009. Learn more about this award
here.
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Beyond the
Ultimate Question
Measuring
Customer Satisfaction and Loyalty