- Jul 10, 2019
The use of the Net Promoter Score (NPS) and system is a booming business for Satmetrix. Many companies use the simple-to-use question, “How likely is it that you would recommend (brand) to a friend or colleague?” to identify customers who are Promoters of their brand based on strong positive responses. Those who don’t respond as strongly are labeled as either Passives or as Detractors of the brand. This categorization can create an NPS which the business can then use to gauge changes in customer satisfaction and to compare itself to other companies in their industry. Despite the quickly growing popularity of NPS in business there is a lack of research examining the actual economic benefit of its use. More worrying is that, of the research articles that do examine the use of NPS, the evidence is not all positive. The success of NPS may not be better than other similar score and systems. Ivey researcher, Bendle, and Ivey alumni, Bagga and Nastasoiu, specify eight issues that need to be addressed to better study NPS including development of common language between academics and managers, access to data and original methodology from Satmetrix, and deciding what to use as a measure of business success. The authors make multiple recommendations for resolving these issues to benefit both academics and business managers.
Bendle, N. T., Bagga, C. K., & Nastasoiu, A. (2019). Forging a stronger academic-practitioner partnership – The case of Net Promoter Score (NPS). Journal of Marketing Theory and Practice, 27, 210-226.