Archive | May, 2013

Net Promoter Scores: The Good, The Bad, And The Ugly

The Net Promoter Score (NPS) is largely popular due to its successful implementation by companies such as American Express, Apple, and Southwest Airlines. While these scores provide insights on customer satisfaction, they are limited in their ability to prevent churn. A real example provides a case in point, but first a little more information about the NPS. The NPS is a customer loyalty metric developed by Fred Reichheld, Bain & Company, and Satmetrix. The 2003 Harvard Business Review article, “One Number You Need to Grow,” introduced the concept. What is a good Net Promoter Score and how does it work? NPS measures the relative amount of customers who are promoters of a particular brand or company (i.e., fans) versus those who […]