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The net promoter score: What should managers know?
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- Author(s): Dawes, John G.
- Source:
International Journal of Market Research; Mar/May2024, Vol. 66 Issue 2/3, p182-198, 17p- Subject Terms:
- Source:
- Additional Information
- Abstract: The Net Promoter Score (NPS) is a popular management tool that is used in a variety of ways by firms, not-for-profits, and government. This study firstly provides an overview of the various ways in which the NPS is used. It then canvasses four concerns raised by researchers, authors and commentators about the NPS. These relate to (1) its presumed link to business growth, (2) the assumption that low NPS scores indicate negative word of mouth, (3) the weak association between stated likelihood to recommend and actual recommending, and (4) the claim that NPS is a superior metric to customer satisfaction. The evidence pertaining to those concerns is examined. The study then discusses another problem with the NPS that many practitioners are aware of, but has not been studied. The problem is that the counting method used to calculate the NPS introduces additional variation in scores compared to mean average likelihood-to-recommend scores. This additional variation occurs both across brands in a study, as well as for the same brand over survey waves. This variation is likely to be difficult for market research providers, or those who commission NPS work, to explain. The study concludes with alternative courses of action for NPS users. [ABSTRACT FROM AUTHOR]
- Abstract: Copyright of International Journal of Market Research is the property of Sage Publications Inc. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Abstract:
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