LG's new consumer survey

Consumer electronics giant LG Electronics will soon adopt the concept of Net Promoter Score (NPS) for the biannual survey in India to understand the mood of its internal and external consumers. The NPS is globally acclaimed as a crucial indicator of a company's ability to grow.

"The move to introduce NPS indicates that LG's growth appetite is strong," said an industry analyst. LG Electronics posted a turnover of Rs 8,250 crore in 2006 and targets a turnover of Rs 9,500 crore in 2007.

The NPS as a concept featured in management writer Fred Reichheld's book The Ultimate Question and has management gurus like Philip Kotler amongst its vocal supporters. The concept is based on one simple question that is posed to consumers "� "Would you recommend us (product or service) to a friend or colleague?"

Yasho V Verma, director, HR and MS, LG Electronics India told Business Standard that the study would be conducted across trade partners, employees and even vendors. In LG's case, the answer from consumers will be mapped on a ten-point scale to understand how strongly consumers were rooting for the Korean brand.