There is a debate raging across the Net Promoter community about whether to link Net Promoter Score (NPS) to management and front-line compensation. There are good arguments pro and con. The pro group (which includes some notable firms such as GE) argues that if customer loyalty is to be taken seriously, then the NPS metric must be measured rigorously and hardwired into bonus calculations. After all, most bonuses today are determined by short-term financial results. If these financial incentives aren’t balanced by NPS, we will be forever trapped in a cycle of bad profits and declining growth. Moreover, any CEO who extols customer loyalty as a top priority, yet fails to hold employees financially accountable for earning superior loyalty, is sending a loud signal that loyalty is nice but not vital.
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