Fred Reichheld: the Godfather of customer loyalty

Fred Reichheld is a legend in the field of customer loyalty. If you’ve ever received a text or email asking to rate a product or service, you can thank Fred for that. Although the system isn’t without its critics, it’s estimated that NPS (Net Promoter Score) is now used by two-thirds of Fortune 1000 companies.

Since its initial development in the early ‘90s, Fred developed the NPS system to measure how likely customers were to recommend a company to a friend. His latest book, Winning on Purpose: The Unbeatable Strategy of Loving Customers, builds on the early system and is a must-read for any businessperson pursuing sustainable success.

We talk to Fred about the good and the bad of the NPS system, how it’s developed over time, how NPS is a key indicator for the quality of a company’s leadership and much more.

Here's what we discussed:

• What would a younger you say about your success? (00:14)
• Could you give us an overview of your career? (01:00)
• Where did your passion for customer loyalty come from? (02:32)
• How much has the NPS changed since you first came up with the concept? (05:04)
• Could you give some examples of companies that you feel have done NPS in the right way? (16:51)
• Have you noticed differences in the application of NPS across the world? (22:31)
• Would you say there is a direct correlation between NPS and good leadership at a company? (24:45)
• Who are the most inspiring business leaders you've met? (30:30)
• Have you noticed a dip in overall customer service since the pandemic? (34:05)
• The Good News Postcard: What is your advice to your younger self? (38:40)
• What makes a great business leader? (40:16)

Thanks to Finley from the Jill Dando News for bringing us The Good News Postcard this week. Get your dose of positive news by visiting The Good News Post, a website collated by hundreds of young people aged 8 to 18 in the UK. They've written real-life “news that’s good for you”, covering people, animals, stories to cheer people up, and tips to make lives better.

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