A substantial number of Fortune 500 use the Net Promoter Score and even report on it in their earnings calls. The NPS is ubiquitous with some saying it even has a cult-like following among CEOs. But should it? Is the NPS actually harmful? Are there better alternatives? How do we know?
In Part 1 we covered the fundamentals of the NPS, critically examined its validity and reported on our own analyses about its ability to predict future metrics and compared to satisfaction.
In this second part we examine the reliability of the Net Promoter score and examine its scoring system which some have called wacky.
In Part 2 we will cover:
- Is the NPS scoring system (top box minus bottom six box) better than just using the mean?
- Do Promoters really recommend?
- Do detractors really detract?
- Is the NPS Reliable?