{"id":71826,"date":"2025-06-26T16:05:29","date_gmt":"2025-06-26T15:05:29","guid":{"rendered":"https:\/\/www.cxtoday.com\/?p=71826"},"modified":"2025-10-19T08:44:15","modified_gmt":"2025-10-19T07:44:15","slug":"is-nps-really-bs-another-study-suggests-so","status":"publish","type":"post","link":"https:\/\/www.cxtoday.com\/uncategorized\/is-nps-really-bs-another-study-suggests-so\/","title":{"rendered":"Is NPS Really BS? Another Study Suggests So"},"content":{"rendered":"

Since its inception in 2003, the Net Promoter Score (NPS) has been a constant fixture in many customer experience reports, internal and external.<\/p>\n

However, lately, more and more customer experience leaders are questioning whether it\u2019s still fit for purpose.<\/p>\n

In particular, the long-held belief that NPS can predict long-term loyalty and future revenue growth has been called into question.<\/p>\n

A recent study from the Journal of Empirical Generalisations in Marketing Science analyzed data across four industries (automotive, supermarkets, airlines, and fast-food restaurants) over a ten-year period. The results are on display below.<\/p>\n

\"A
Source: LinkedIn<\/a><\/figcaption><\/figure>\n

The research concluded that there is “no clear association between likelihood to recommend (positive or negative) scores for firms, and their future growth or decline across the four categories.<\/p>\n

“The managerial implication is that firms should be wary of predicating growth on high or improving recommendation\/NPS scores.”<\/p>\n

In a LinkedIn post referencing the study, Vikkas Mittal, Faculty Director of the Center for Customer-Based Execution and Strategy at Rice University in Houston,<\/strong> questioned CEOs who are still championing the importance of NPS. He wrote:<\/p>\n

It’s not strange that NPS doesn’t predict financial performance. It is strange that CEOs and senior executives using legacy strategy planning continue to defend NPS and cling to it!<\/p><\/blockquote>\n

Mittal believes that MBAs, CEOs, and senior executives need to take greater responsibility.<\/p>\n

He implores them to take steps to fully understand the complexities and nuances of business research instead of rushing to oversimplified conclusions.<\/p>\n

“They will benefit from becoming thoughtful users of science that improves strategy,” he explained.<\/p>\n

Unsurprisingly, Mittal\u2019s post caused a stir, with the majority of people seemingly agreeing with the Faculty Director\u2019s broader point.<\/p>\n

However, some people did step in to defend the metric.<\/p>\n

Peter Verhoef<\/strong>, Dean of the Faculty of Economics and Business at the University of Groningen<\/strong>, agreed that too much emphasis is given to the relationship between NPS and long-term value, but argued that NPS can still be useful when deployed as a metric to “observe if firms create sufficient value to customers.”<\/p>\n

So, let\u2019s take a closer look at why NPS is so popular amongst CEOs, why it is less popular amongst many CX professionals and analysts, and what organizations can use instead.<\/p>\n

Is NPS Fit for Purpose?<\/h2>\n

In order to fully understand the pros, cons, and differences surrounding NPS, it\u2019s important to first outline precisely what it is.<\/p>\n

For such a prominent CX metric, NPS is surprisingly simple.<\/p>\n

It is a single-question metric: “How likely are you to recommend this product or service to a friend or colleague?” Rated on a scale from one to ten.<\/p>\n

For Justin Robbins<\/strong>, Founder and Principal Analyst at Metric Sherpa<\/strong>, it is this simplicity that makes NPS so popular.<\/p>\n

Speaking on an episode of CX and Coffee<\/a>, Robbins explained that NPS “has boardroom appeal. It\u2019s flashy. It\u2019s digestible. You can say, “We went from a 43 to a 67!” and that sounds like progress,” he explained.<\/p>\n

Yet, Robbins has two main issues with NPS.<\/p>\n

First, the question is too vague. While he concedes that some companies include an open-ended question that does allow customers to provide more details, in general, the feedback is too broad to help companies implement specific improvements.<\/p>\n

Marty Shaughnessy<\/strong>, Robbins\u2019 co-host, agrees. He believes that too many businesses use NPS to collect data, but don\u2019t have the capabilities to transform the data into anything meaningful, as he explains:<\/p>\n

“Without someone who can analyze it [NPS data] and make decisions like, \u2018Here\u2019s where we\u2019re lacking \u2013 let\u2019s A\/B test this,\u2019 it goes nowhere.<\/p>\n

How do you analyze such a broad question? It\u2019s so vague. Like, someone had a good or bad experience \u2013 then what?<\/p><\/blockquote>\n

This leads into Robbins\u2019 second issue with NPS, the fact that it\u2019s a lagging indicator.<\/p>\n

The analyst sees it as a snapshot of how a customer felt in the moment, rather than a predictor of future actions and behavior.<\/p>\n

Moreover, NPS inevitably invites sample bias. Like any voluntary survey, it naturally attracts responses from the extremes: very happy customers, or very unhappy customers.<\/p>\n

Robbins explains how this means that \u201cquiet, high-value customers might not participate at all.<\/p>\n

“So not only is it lagging and non-predictive, it\u2019s also potentially misaligned with actual behavior.<\/p>\n

“A high score doesn\u2019t mean someone will be loyal or spend more. Nothing\u2019s guaranteed.”<\/p>\n

But what other metrics can companies turn to instead of NPS?<\/p>\n

What Do We Move to Instead of NPS?<\/h2>\n

It is, of course, far easier to pick holes in something than to come up with something better.<\/p>\n

NPS has become the status quo, and because many companies do not believe that a superior alternative exists, they continue to place their stock in the tried and tested metric.<\/p>\n

For Robbins, to move away from NPS and implement a system that can truly deliver value, organizations need to rethink what they\u2019re measuring.<\/p>\n

Is it actionable? Have you ever actually acted on it? And does it align with the outcomes your business cares about most?<\/p>\n

If the answer is no, it\u2019s time to rethink.<\/p>\n

He also reiterated Shaughnessy\u2019s point on data, highlighting the importance of training staff on what the information means and what can be done with it.<\/p>\n

Leading on from this, the Analyst recommends that any metric deployed must be linked to real-world results.<\/p>\n

If you can\u2019t tie what you\u2019re tracking to operational efficiency or financial performance, what\u2019s the point?<\/p>\n

While all of these suggestions will help, above all, Robbins wants customer service and experience teams to simply \u201cask better questions.<\/p>\n

\u201cInstead of, \u2018Would you recommend us?\u2019, try: \u2018What is one thing we could have done better?\u2019<\/p>\n

That question opens the door for honest, constructive feedback. It also means being willing to hear that your baby might be ugly \u2013 and that\u2019s okay.<\/p><\/blockquote>\n

For more insights from leading thinkers across the customer experience space, subscribe to the\u00a0CX Today newsletter<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Since its inception in 2003, the Net Promoter Score (NPS) has been a constant fixture in many customer experience reports, internal and external. However, lately, more and more customer experience leaders are questioning whether it\u2019s still fit for purpose. In particular, the long-held belief that NPS can predict long-term loyalty and future revenue growth has […]<\/p>\n","protected":false},"author":4983,"featured_media":71829,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[1],"class_list":["post-71826","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-user-experience","tag-voice-of-the-customer","brands_to_track-cx-today","editorial_type-interview","intent-discovery","target_audience-dual"],"acf":[],"yoast_head":"\nIs NPS Really BS? 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