NPS Discussion Paper Receives Awards

Posted by: Eric S. Levy on Monday, December 10th, 2007

Most people discussing Fred Reichheld’s Net Promoter Score (a popular Core Customer Metric) seem to be either rabidly in favor of it or violently opposed to it.  Most of the criticism of the NPS comes from technical perspectives, while most of the adulation for it comes from the upper levels of management.

The primary purpose of this blog is to promote discussion of the creation and implementation of a Core Customer Metric that adequately reflects the Voice of the Customer and is still predictive of business results.  Therefore, it is only fair that we point out the latest Marketing Science Institute/ H. Paul Root Award, which is given each year to the Journal of Marketing paper that had “the most significant contribution to the advancement of the practice of marketing,” is a discussion about the veracity of the Net Promoter Score itself.  We like this paper, available here not because it criticizes Reichheld’s much-lambasted NPS Core Customer Metric, but because it promotes a discussion regarding the KINDS of metrics companies should be examining for their own purposes.

As the abstract for this article states, “…Using industries Reichheld cites as exemplars of Net Promoter, the research fails to replicate his assertions regarding the “clear superiority” of Net Promoter compared with other measures in those industries.”  The discussion of these other measures makes interesting reading, since a similar process might and should be performed for any candidate Core Customer Metric.

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