Joshua Fraser breaks down Net Promoter Score, the single question Fred Reichheld created at Bain & Co. that measures customer loyalty on a 0-10 scale. Apple, Amazon, Airbnb, and Tesla built their growth on word-of-mouth from promoters, not paid ads.
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Apple, Amazon, Tesla, Airbnb, all obsessed over this one single question. Would you recommend us to a friend? That's the powers of using a net promoter score. And it's a simple metric with massive impact. It was developed by a guy named Fred Reichelt at Bain Co. And introduced in his book the Ultimate Question. NPS measures customer loyalty by asking one core question. How likely are you to recommend us to a friend or to a colleague? Customers. Who answers a scale from 0 to 10, 9, 10, they're promoters. 7 to 8 they're passives, neutral at best, 0 to 6 they're detractors. And they're telling others not to trust you. The formula is NPS is percent of promoters minus the percent of detractors. And so your most powerful growth channel isn't just going to be paid ads or SEO. It's going to be when loyal customers tell others.