IDEAS home Printed from https://ideas.repec.org/a/wly/apsmbi/v35y2019i1p138-151.html
   My bibliography  Save this article

Good and bad market research: A critical review of Net Promoter Score

Author

Listed:
  • Nicholas I. Fisher
  • Raymond E. Kordupleski

Abstract

Net Promoter Score, touted as the “single customer metric you need” and calculated from customers' answer to one simple question about their loyalty, has been in use since 2003 and adopted in a wide variety of settings. However, it has not lived up to its claimed benefits. This article evaluates the NPS approach in terms of its positive and negative results. This article is for people interested in NPS, still considering implementing NPS in their company, or interested in its technical underpinnings. It points out the benefits and shortcomings and explains why, and it describes what can be done to achieve the outcomes NPS theory claimed it would produce, but has not. The article is written in two parts for quite distinct audiences: firstly, for executives and managers who need customer data and information to make marketing decisions; and secondly, for market researchers, statisticians, and business analysts who are responsible for capturing and providing reliable, understandable, and meaningful customer data to the executives and managers who need the information. Consequently, the two sections are written in two different styles. The first section takes the form of a summary for managers and executives of our findings and recommendations in language aimed at business leaders; the second section provides a detailed analysis and critical review of NPS for market researchers, statisticians, and business analysts. Both sections present a better solution than NPS for understanding what customers value, delivering the best value to customers, winning market share, and creating truly loyal customers.

Suggested Citation

  • Nicholas I. Fisher & Raymond E. Kordupleski, 2019. "Good and bad market research: A critical review of Net Promoter Score," Applied Stochastic Models in Business and Industry, John Wiley & Sons, vol. 35(1), pages 138-151, January.
  • Handle: RePEc:wly:apsmbi:v:35:y:2019:i:1:p:138-151
    DOI: 10.1002/asmb.2417
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/asmb.2417
    Download Restriction: no

    File URL: https://libkey.io/10.1002/asmb.2417?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Daniel Jeske & Terrance P. Callanan & Li Guo, 2011. "Identification of Key Drivers of Net Promoter Score Using a Statistical Classification Model," Chapters, in: Chiang Jao (ed.), Efficient Decision Support Systems - Practice and Challenges From Current to Future, IntechOpen.
    2. N. I. Fisher, 2019. "A comprehensive approach to problems of performance measurement," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 182(3), pages 755-803, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Laura Grassi & Nicolas Figini & Lorenzo Fedeli, 2022. "How does a data strategy enable customer value? The case of FinTechs and traditional banks under the open finance framework," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-34, December.
    2. Larson, John & Jaworski, Bernard J. & Larson, Jack, 2021. "Managing your most loyal customer relationships," Business Horizons, Elsevier, vol. 64(1), pages 141-147.
    3. Yeonsoo Jun & Juneyoung Park & Chunho Yeom, 2021. "The Evaluation of Experimental Variables for Sustainable Virtual Road Safety Audits," Sustainability, MDPI, vol. 13(11), pages 1-14, May.
    4. Carlos Lamela-Orcasitas & Jesús García-Madariaga, 2023. "How to really quantify the economic value of customer information in corporate databases," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-13, December.
    5. Asier Baquero, 2022. "Net Promoter Score (NPS) and Customer Satisfaction: Relationship and Efficient Management," Sustainability, MDPI, vol. 14(4), pages 1-19, February.
    6. Gheorghe Zaman & Nicoleta Valentina Florea & Constantin Aurelian Ionescu & Dan Marius Coman & Doina Constanta Mihai & Nicoleta Luminita Gudanescu Nicolau, 2022. "Mathematical Model for Determining Costs of Unsatisfied Customers of HoReCa Industry," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 24(59), pages 268-268.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lin Feng & Wei Wei, 2020. "A Combined Method of r-NPS and t-NPS Evaluations for Identification of Negative Triggers of Detractors’ Experience," Sustainability, MDPI, vol. 12(4), pages 1-23, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:apsmbi:v:35:y:2019:i:1:p:138-151. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)1526-4025 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.