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Tying bonuses to customer satisfaction
Tying bonuses to customer satisfaction
LearningRx founder Ken Gibson, whose tutors help kids improve their memories, ties compensation to customer satisfaction.
Ken Gibson, founder of LearningRx, a Colorado Springs company that helps clients improve their memory and concentration, introduced NPS as what he calls a "reward and shame system."

When he first heard about NPS, a light bulb went off: Rather than tying its tutors' bonuses to student test results, as he had in the past, he could tie them directly to customer satisfaction. While LearningRx tracks NPS on a companywide basis, it also figures NPS for individual tutors. The scores then determine the size of each worker's bonus. Tutors who achieve a score of 90 or better receive bonuses equal to 20% their base pay; those scoring 70 to 89 get as much as 10%. Below 70, they get nada.

The system seems to be working. Since it started tracking NPS, LearningRx has seen its number improve from 70 to 72.

Read more about how LearningRx prevents respondents from gaming the system.

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LAST UPDATE: May 27 2008 | 2:45 PM ET
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