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Controlling & Management Review

, Volume 61, Issue 1, pp 32–38 | Cite as

NPS — The One Measure You Really Need to Grow?

  • Martin Artz
Schwerpunkt Loyalty Metrics
  • 385 Downloads

The Net Promoter Score (NPS) has often replaced customer satisfaction indices or customer loyalty metrics as a customer feedback measure. But does it keep its promise to predict future performance better than alternative measures? A closer look at academic studies gives some guidelines on how to apply NPS as a useful instrument for management control.

It was just a simple question that management consultant Fred Reichheld introduced in a Harvard Business Review article in December 2003 (cf. Reichheld 2003): “How likely is it that you would recommend [company name] to a friend or colleague?” Responses to this question were to be transferred into a new metric which was claimed to better predict “future growth” than previously used measures of customer satisfaction or customer loyalty. Since then, this metric, the so-called Net Promoter Score (NPS©), has become an impressive success story in business practice. Not only has it been adopted by some of the world’s most prestigious firms but...

Keywords

Customer Satisfaction Future Performance Customer Loyalty Customer Lifetime Value Valuable Customer 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Fachmedien Wiesbaden 2017

Authors and Affiliations

  1. 1.Frankfurt School of Finance & ManagementFrankfurt am MainDeutschland

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