Fred Reichheld's Blog

RE: Measuring Corporate Responsibility with NPS

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RE: Measuring Corporate Responsibility with NPS

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RE: Measuring Corporate Responsibility with NPS

AZinGA — Thu, 23 Jun 2011 23:20:57 GMT

Fred, I understand the disappointment in seeing one McMansion torn down, to be replaced by another Whopper of a home.

I would like to share, though that corporate sustainability today is no longer just about environmentalism.

Since you are in Boston, perhaps you'd be interested that Harvard University has a vibrant Masters of Arts - Sustainability Program in the Extension School. Your thoughts on using NPS to gage CSR progress could be an interesting case study!

ISO 26000, the first guidance on social responsibility developed by an international group of contributors, was published last fall. The guidance provides 7 core subjects and the environment is just one of the subjects. Other ISO 26000 subjects include organizational governance, human rights and labor practices, as well as community involvement and development. There are 7 key principles that span these 7 subjects. The principle of respect for stakeholder interests speaks to the "human footprint". This goes beyond the customers and employees - into the communities where materials are sourced and products are manufactured.

Sustainability in responsible organizations is not just about the "carbon footprint". That is just one small slice. It is about all responsibilities: envirnmental, social and economic. Companies cannot get away with superfulous initiatives these days.

NPS can potentially be used as part of a Sustainability Management System (SMS), when reporting for GRI or working on Baldridge Performance Excellence (or other performance frameworks for those outside the U.S.).

My 2 cents (and hold the fries:-)

RE: Frugal Wow Redux: Eat Mor Chikin

HyperN8 — Sat, 19 Feb 2011 15:38:16 GMT

Chick-fil-a does have an amazing ability to deliver "wow" service. Combining their service with a delicious and unique fast-food offering really makes it a regular pleasurable experience. I have always been very impressed with how I was greeted and handled throughout an entire intereaction.

I would be very interested to know Chick-fil-a's practices for hiring people that are very warm and friendly and also their training and communication methods to keep their associates happily greeting customers day in/day out. Good article!

RE: The Power of Frugal Wows

wincustomer — Thu, 17 Feb 2011 02:08:56 GMT

I wonder if "frugal wow" is in essence the same or similar as "delighters" (as used in the Kano model)?

RE: Frugal Wow Redux: Eat Mor Chikin

wincustomer — Thu, 17 Feb 2011 02:06:08 GMT

Hi Fred,

How are you? Someone from my company attended the recent NPS conference in Miami and shared with us internally about some takeaways. One of them is "focus on NPS system, not NPS".

I have tried to search for something to read and understand what would you or any "NPS practitioner" mean by an NPS system. Any hint or direction to hep me think and get my head around this to be practical and useful would be appreciated!

Thanks!

RE: The Power of Frugal Wows

mweaver — Fri, 06 Aug 2010 23:02:03 GMT

I don't think that the mechanic set an unrealistic expectation. Our accountant is great, if we have a question that she can answer in under 15 minutes she won't charge. I enjoy calling her and bringing her questions, because she won't charge for the easy stuff, I'm more than willing to pay for good information and more likely to call her because I know that she isn't out to get me. Funny thing is I'm actually happy if it is a question she bills me for.

Contrast that with a computer consultant we used on our information system that charged for literally everything, literally. Every phone call to them came back with an invoice, the straw that broke the camels back was when we got a bill for over $100 to change an IP address that we could have done ourselves if they had given us the phone number to do it. So we don't use them any more. We won't use them anymore and any time we deal consultants that are resellers for our system we bad mouth the previous consultants.

RE: The Power of Frugal Wows

SARiver — Fri, 06 Aug 2010 11:37:58 GMT

The mechanic was probaly using spare resource that cost little to create a lasting impression of something like: "I won't be ripped off here" and "they will respond rapidly to my needs without a fuss" together with a sense of connection ( part of the same community). They might just have been a nice person doing what comes naturally but they sure got a nice revenue stream as a result. Shows the importance of aiming to create a brand image that attracts the business you want then living it at every opportunity

RE: The Power of Frugal Wows

NicholasC — Thu, 08 Jul 2010 17:42:02 GMT

I think most reasonable people will recognize that taking a few minutes to help someone in need and not charging for the service is not license to expect free services in the future. I had a somewhat similar expereince over the weekend. I was lost driving through the mountians of northern Georgia when I stopped to ask for directions at a Petting Zoo/Horse Riding Stable. After the woman gave me directions she said, "Come back and ride with us sometime." The mechanic probably did something very similar; he helped a young lady out and said, "Come back when you need your car repaired or an oil change." The focus is not on the free, but the service.

RE: The Power of Frugal Wows

mpons — Fri, 25 Jun 2010 03:32:21 GMT

Did the mechanic set an unrealistic expectation that future work will be done for free? Nobody likes paying for auto repair. Was this really a "frugal wow" for the mechanic? Is the emphasis when the story is told by your daughter and recommended to friends, that "I've got a mechanic who does free work. You should try him." Lexus and Audi's are sophisticated automobiles. Fixing cars is the core function of corner garage's business. Do they give so much free work away that they can not afford to buy the sophisticated computerized tools to work on Lexus. Would the corner garage still be the same hero if they had charged $100 and given your daughter a t-shirt. My point is that your previous examples were about thank you letters, pizza, and t-shirts. None of the examples include the businesses giving their core services away for free. Businesses that provide a great experience need to be sustainable so that they can share that great experience with lots of customers. I think it's dangerous to encourage customer obsessed behavior where you give your services away versus customer centered behavior where your work is properly valued and you provide great service.