Net Promoter Score: COLLOQUY Report Explores Much-Lauded Loyalty Tool
From cooking to carpentry, athletics to academics, the importance of having accurate and relevant measurements can’t be overestimated. Being able to quantify our actions and performance can help us assess where we’ve been, where we are and, ideally, where we’re going.
For more than a decade, the yardstick for measuring business success has been Net Promoter Score (NPS), a management tool created to gauge customer satisfaction with a single question. NPS has been so widely adopted in so many industries that some estimates say more than two-thirds of Fortune 1000 companies now use it to measure customer loyalty.
Yet NPS has also been the subject of criticism and controversy from academics, market researchers and business analysts who question whether it actually moves the needle on consumer behavior and corporate profitability. As with most things in life, Net Promoter Score is probably neither as exalted as proponents claim nor as flawed as critics do.
In the special report “NPS and Beyond,” COLLOQUY Editor-in-Chief Jeff Berry takes a closer look at NPS and examines whether it truly helps companies and brands grow revenue and profitability. Most importantly, the report explores whether NPS is the right measurement for your business.