The Pros & Cons of Net Promoter Score
While easy to understand, Net Promoter Score is not the final answer in customer satisfaction measurement.
Net Promoter asks customers how likely they would be to refer a friend to a particular company. Mostly, we find that customers do not engage with this question or respond to it in a reflective or meaningful way.
5 Responses to “The Pros & Cons of Net Promoter Score”
About Net Promoter: Because Keiningham comes across as more of a scientist than a business person, if his research finds NO correlation between net promoter and revenue, his research is probably correct. This puts a huge dent in Reichheld’s argument.
Based on my personal experience, I agree with the Interaction Metrics’ finding that the question “would you refer…?” is not particularly trenchant. I know when I have been asked this question, I have given a top of hat type response. To boot, I suspect that my response is influenced by whether I like the person asking the question–or not.
But I doubt companies will stop asking the NP question anytime soon. As far as I can tell, business decisions are often based on the latest trends–not truth.
By Darrell Raschio on Apr 13, 2008
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By sandrar on Sep 10, 2009
The question is OK. The problem is that it is not helpful in finding solutions. For that you need a well constructed questionnaire as part of a good program. Also the question of few verbatims in online survey responses complicates the matter.
By Ben Marbury on Sep 11, 2009
I’m actually a fan of the NPS approach. For many small and medium sized businesses that make no effort to engage their customers, the simplicity of NPS is an important benefit. Sure, there are plenty of critiques in the academic and consulting literature, but what I find with my clients is that they can actually get their heads around the question, the metrics, the implementation process. And so can their customers.
That said, I do modify the satisfaction questionnaire a bit. By including an open-ended question or two as well as a couple of classification questions, a client can quickly solicit and receive feedback from a large percentage of customers. When this happens, the non-response bias is minimized and the guidance provided by the qualitative responses serves as a great starting point to develop programs and strategies to improve customer relationships.
In short, I find clients ready and willing to take action - which ultimately is the path to getting better.
Andy Perkins
The Customer Satisfaction Questionnaire Blog
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