Bain & Company and NPS Creator Fred Reichheld Reveal the Unbeatable Strategy of Loving Customers
Dubai, United Arab Emirates: Winning companies, or those that really make the world a better place, offer returns 2-3 times higher than the stock market average and provide fulfilling work for their employees, often have one thing in common: they give their customers first. of all other stakeholders. Many of these top companies are expert practitioners of the Net Promoter Score℠ (NPS) widely used by Bain & Company, a customer loyalty tracking measure, which is based on the recognizable truth that “if a company treats you , you come back – and you tell your friends and family.
Bain & Company announced the launch of Winning by Design: The Unbeatable Strategy of Loving Customers by Darci Darnell, Maureen Burns and Fred Reichheld, creator of the Net Promoter System℠ in December. This new book provides ample and compelling evidence that customer capitalism enables all stakeholders to win while building a sustainable future.
In Win on purpose, the authors explain why companies should make enriching the lives of their customers their primary goal, proving that it’s the best way to ensure sustainable growth, happy employees and solid returns for investors. The book also unveils two of Bain’s new innovations: Net Promoter 3.0, which has been updated to meet today’s business and social environment, and Earned Growth, an accounting-based twin for NPS.
Fred Reichheld, a member of Bain & Company and creator of the Net Promoter System℠, said, “Discontent is rising against traditional capitalism. IIt has become essential for businesses to move from finance capitalism, which is primarily focused on profits, and stakeholder capitalism, which ultimately satisfies no one, to customer capitalism, which makes enriching the lives of customers a top priority. .
“This has proven to be the best way to ensure strong and lasting results for all stakeholders,” Reichheld said. “NPS shines as a guiding star for leaders committed to making their business truly great.”
With an entertaining and inspiring mix of personal stories, customer and employee experiences, and insights from CEOs and investors, the authors share key messages:
- How NPS feedback from millions of customers has revealed that the previously invisible forces of love and loyalty drive business success, and how traditional financial metrics steer businesses toward greed and self-interest.
- Why most NPS practitioners achieve only a small fraction of the system’s potential, and how leading practitioners use it as a moral compass to ensure people are treated correctly. Case studies featured include Apple, Amazon, Airbnb and Tesla.
- The groundbreaking Earned Growth Rate (EGR), which provides the accounting twin to complement the NPS, ensuring businesses make “good profits,” mostly generated when loyal consumers come back for more and bring their friends.
- How to fight the big quit by allowing employees to serve customers and hear how they did it. The best companies know that the human touch is a key competitive differentiator for customer satisfaction and retention. And that for employees, the freedom to serve customers with empathy and creativity is the best path to extraordinary teams.
- The FRED Stock Index (FREDSI), which tracks the total shareholder return of companies that achieve the highest NPS in their industry. Not only do these companies earn the love of customers; they consistently beat the stock market, with annual returns of over 26% – nearly triple the stock market average over the past decade.
about the authors
FRED REICHHELD is the creator of Net promoter systemthe founder of Bain & Company Loyalty practice, and author of five books including the New York Times bestseller “The ultimate question 2.0.” He is currently a Fellow and Senior Advisory Partner at Bain (currently based in Boston), where he has worked since 1977.
DARCI DARNELL is the global head of Bain & Company Customer practice, responsible for the firm’s client solutions in client strategy, retention, sales excellence, pricing and marketing. Darci has held several leadership positions globally and today sits on the company’s most elected governance committee. He is currently based in Chicago.
MAUREEN BURNS is a senior partner of Bain & Company Customer practice, based in Boston. She is one of Bain’s top Net Promoter System and customer retention experts. Maureen has led some of Bain’s most notable digital transformations, helping clients leverage technology and data to build customer loyalty.
About Bain & Company
Bain & Company is a global consultancy that helps the world’s most ambitious changemakers shape the future.
Across 63 offices in 38 countries, we work alongside our clients as one team with a common ambition to achieve extraordinary results, outperform the competition and redefine industries. We complement our integrated and personalized expertise with a vibrant ecosystem of digital innovators to deliver better, faster and more sustainable results. Our 10-year commitment to investing over $1 billion in pro bono services brings our talent, expertise and knowledge to organizations tackling today’s pressing challenges in education, racial equity, social justice, economic development and the environment. We have achieved a gold rating from EcoVadis, the leading environmental, social and ethical performance rating platform for global supply chains, placing us in the top 2% of all companies. Since our founding in 1973, we have measured our success by the success of our customers, and we proudly maintain the highest level of customer advocacy in the industry.