Is the Net Promoter Score a Better Measure than Satisfaction

Net Promoter Score

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Customer satisfaction is a staple of company measurement. It’s been used for decades to understand how customers feel about a product or experience. Poor satisfaction measures are an indication of unhappy customers, and unhappy customers generally won’t purchase again, leading to poor revenue growth. But is satisfaction the wrong measure for most companies? That’s certainly the claim Fred Reichheld has made and advocated the Net

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It’s the only number a company needs to grow. Or at least that’s what was proclaimed in the title of the now famous HBR article that helped popularize the Net Promoter Score (NPS). Lately it's been taking on more criticism. The NPS is compelling to executives because of its simplicity and for what it purports to do: be the one number a company should track

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A good measure of customer loyalty should be valid, reliable, and sensitive to changes in customer attitudes. For the most part, the Net Promoter Score achieves this (although it does have its drawbacks). One area the Net Promoter Score lacks in is how its scoring approach adds “noise” to the customer loyalty signal. The process of subtracting detectors from promoters may be “executive friendly” but

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The Net Promoter Score (NPS) is a popular metric for measuring customer loyalty. For many companies, it’s THE only metric that matters. With such wide usage across different industries, departments, and companies of various sizes, it’s no surprise many questions and controversies arise. Some are systemic—should the NPS be used as a key metric?—and some are trivial—should the NPS be treated as a percentage? In

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Positive word of mouth is a critical driver of future growth for consumer software products. Along with features and capabilities, user experience is a key determinant of how likely users adopt new technology and recommend software. We’ve found that usability accounts for between 30% and 60% of the variation in Net Promoter Scores. A positive experience leads customers to recommend a product. A negative experience,

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Despite the attention consumer-based mobile apps, websites, and software get, a lot of the world depends on business software. Business software supports core functions for organizations such as productivity tasks, communication, accounting, and sales. Along with features and capabilities, the user experience of software is a key determinant of how likely users adopt new technology and recommend the product. Benchmarking is an essential step in

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Increasingly companies are adopting the Net Promoter Score as the corporate metric. In many companies, all metrics, including user experience metrics, should roll up to the Net Promoter Score. Here are 10 things to know about the Net Promoter Score if you're concerned about improving the user experience. The Net Promoter Score is a measure of customer loyalty and is based on a single question:

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