Let us republish very interesting conclusions about NPS, from the Forbes article written by Ron Shevlin.
The author is the Chief Research Officer at Cornerstone Advisors, where his research on banking and fintech trends helps shape the direction of financial institutions and fintech.
He states, that based on his experience and observations Overall, there are four conclusions to draw about NPS:
(1) The Net Promoter Score is dead. Bain attempts to paint Earned Growth as “Net Promoter 3.0” but the proposed methodology moves away from the pointless 10-point scale associated with asking customers about their intention to refer.
(2) Behavior trumps intention. The new metrics reflect something many of us have said for years: The only thing that matters is actual behavior (and results). Can you imagine a salesperson going to her boss and saying “I intended to make a lot more sales this year, so you should pay me based on what I intended to sell”?
(3) There are no “silver bullet” metrics. For years, proponents of the NPS have heralded the metric as the “one number to know” and the ease with which the metric can be measured. The real world isn’t that simple. Boiling complicated organizations down to a single metric—let alone one as flawed as the NPS—just doesn’t work. Executives looking for easy fixes should be fired.
(4) Earned growth will catch on—in some industries. Bain is a leading and influential consulting firm, and as a result, many companies will experiment with and adopt the new Earned Growth metric. But because it relies on tracking actual referral and customer revenue activity, not all companies will find it practical to implement. After all, I love the brand of cereal I eat each morning, and refer it to anyone crazy enough to listen to me, but I don’t see how Quaker Oats will ever figure out how much I spend on their cereal or how many people I refer their product to.
For the full article visit https://www.forbes.com/sites/ronshevlin/2021/12/27/the-net-promoter-score-rebrands-as-earned-growth/