Abstract

The measurement and management of customer loyalty and its link with firm growth have long been of interest to managers and researchers. One relatively recent word-of-mouth customer loyalty metric purported that the link to growth is the Net Promoter Score (NPS), a metric based on a likelihood to recommend question asked in customer surveys. This research provides a summary of the claims made regarding NPS, reviews the research conducted on this topic to date, and provides a holistic examination of two scientific studies that test the claims made. The two claims being tested are that (1) NPS is the single most reliable indicator of a company’s ability to grow and (2) NPS is superior to customer satisfaction and the latter has no link to growth. Based on both macro- and micro-level investigations that test the link between NPS and firm growth and NPS and customer behaviour metrics respectively, our research finds that neither of these claims are supported.

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Jan
Jan
Autor
Psychologe, Web Analyst, Science Junkie, Star Wars Missionar und Gründer des Blogs

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