Why Your CFO Should Care about Net Promoter
Some of you may have heard Fred Reichheld discuss his aspirations for Net Promoter. He’d like to see it become a standard financial measure that is regarded as highly as revenue on the income statement or cash on the balance sheet. In this post, I argue for the proper accounting of customer loyalty and explain why, in its absence, managers make sub-optimal decisions. Yes, this is that dreaded moment they told you about in high school, where algebra could save your life.