Why on Earth Are We Still Using NPS?
It might as well stand for ‘Not Particularly Solid,’ because this metric is the victim of some serious design flaws.
Net Promoter Score (NPS) is a metric that has long captivated the business world. Its allure lies in its plain simplicity. It promises the capture of customer loyalty in a single number.
This perception is a double-edged sword-deceptively straightforward yet flawed in its ability to offer actionable insights.
A report by Harvard Business Review from 2021, Beyond NPS: Customer Experience Measurement Reimagined, quotes a study by Gartner:
“Research and advisory firm Gartner Inc. has predicted that more than 75% of organizations will abandon NPS as a measure of success for customer service and support by 2025”
Let’s dissect the illusory effectiveness of NPS. We’re about to explore why its reign as the supreme metric for organizational success is misguided.
The Fallacy of the One-Size-Fits-All Metric
It’s a story as old as modern business management.
A company, under pressure from various external factors like a recessive economy or new investors, scrambles to enhance its key performance…