Is the Net Promoter Score still relevant?

BUSINESS leaders have long hailed the Net Promoter Score (NPS) as a critical metric for assessing customer satisfaction and loyalty. However, in recent times, debates have arisen regarding its continued relevance in today’s dynamic market landscape. As businesses strive to adapt to evolving consumer preferences and behaviors, the question arises: Is the Net Promoter Score still relevant?

To delve into this matter, let’s first understand what the Net Promoter Score entails. Developed by Fred Reichheld and introduced in 2003, the NPS measures the likelihood of customers to recommend a company’s products or services to others. It is calculated based on responses to a single question: “On a scale of 0 to 10, how likely are you to recommend our product/service to a friend or colleague?” Respondents are then categorized into three groups: Promoters (scoring 9-10), Passives (scoring 7-8), and Detractors (scoring 0-6). The NPS is derived by subtracting the percentage of Detractors from the percentage of Promoters.