I agree that loyalty is a key concept. The challenge is, that NPS doesn't represent loyalty. We want customers that remain loyal, remain customers. If they recommend us that is great. A great marketing tool. But we can have very loyal customers that don't recommend. A "detractor" is not "bad profits" if they are a loyal customer. Recommendations is a great way to measure word of mouth, not loyalty. After researching hundreds of companies, looking at millions of data points, recommendations are not a proxy for loyalty.
The debate over how many questions to have on a survey is secondary to the question posed by Ms. Eastman--how to put the results to use? We work extensively with a large number of Caterpillar dealers on measuring and improving customer service. The most challenging question we typically face from clients is "I have all this information now what do I do with it?" More attention needs to be paid to the "so what?" question.
Lynn Daniel
Another really good question to ask (I'm not going to argue over "ultimate" in this forum), is what are my customers saying when I'm not around? What are they saying on blogs and to the press? What are they saying on the Internet and what lasting impressions do they leave for other customers to find?