A substantial number of Fortune 500 use the Net Promoter Score and even report on it in their earnings calls. The NPS is ubiquitous with some saying it even has a cult-like following among CEOs. But should it? Is the NPS actually harmful? Are there better alternatives? How do we know?
To assess the impact of a measure like the NPS means assessing its validity (does it measure what it intends to measure) and reliability (how consistent is it). Unfortunately, most discussions online offer little more than anecdotes and poorly reasoned emotional rebuttals.
In this first part of a multi-part webinar on the Net Promoter Score we get down to the fundamentals of the NPS, critically examine its validity, and report on our own analyses. In Part 1 we’ll cover:
Does the NPS predict future revenue growth?
Is the NPS better than satisfaction?
Has the NPS been “debunked” in the academic literature?