The Net Promoter Score (NPS) is not a reliable predictor of revenue growth, according to new research that analyzed the performance of more than 30 companies across these two metrics.
More precisely, the analysis – a working paper entitled “The Net Promoter Score (NPS) Fails to Predict Revenue Growth”, and published by the Marketing Science Institute, a unit of the Advertising Research Foundation (ARF) – stated that the NPS “was not a reliable predictor of revenue growth”, despite its popularity among business leaders.
This conclusion was based on research that covered brands in a range of categories, from...