What is Wrong with Net Promoter Score
Nicholas I Fisher, Raymond E Kordupleski
TL;DR
The paper critically examines the widespread use of Net Promoter Score (NPS), highlighting its limitations and potential negative impacts on companies and customers, despite its popularity as a simple market research tool.
Contribution
It provides a critical analysis of NPS's shortcomings and argues that its widespread adoption has been detrimental rather than beneficial.
Findings
NPS lacks desirable characteristics of high-quality market metrics.
Widespread use of NPS has caused damage to companies and customers.
NPS's simplicity does not compensate for its methodological flaws.
Abstract
Net-Promoter Score (NPS) is now ubiquitous as an easily-collected market research metric, having displaced many serious market research processes. Unfortunately, this has been its sole success. It possesses few, if any, of the characteristics that might be regarded as highly desirable in a high-level market research metric; on the contrary, it has done considerable damage both to companies and to their customers.
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Taxonomy
TopicsAccounting and Organizational Management · Financial Reporting and Valuation Research · Customer Service Quality and Loyalty