Net Promoter Score: Too Good To Be True?

In the article “What is Net Promoter..”, the metric of Net Promoter Score (NPS) is discussed as a powerful measure of customer satisfaction. NPS subtracts the percentage of “Detractors” in a company’s customer base (customers not likely to recommend your company to others) from “Promoters” (customers who are likely to recommend your company). The higher a company’s NPS, the greater the expected impact of satisfied customers on business growth.

  • In your opinion, is this single-item measure of customer satisfaction sufficient to gauge how well your firm is serving its customers? If yes, why? If no, what are the limitations of relying on NPS as a measure of customer satisfaction?