Flaws In The Net Promoter Score: Part 1 of 2
There are a few key flaws with the Net Promoter Score, also known as, NPS.
This post addresses the first: the imbalance of the scale. NPS is calculated by asking customers, "How likely are you to recommend our company to a friend or colleague?" Responses range from 0 to 10, with 9 and 10 considered "Promoters" and 0 through 6 are "Detractors." The NPS is the percentage of Promoters minus the percentage of Detractors, giving a score between negative 100 and 100.
The problem is that the scale isn't balanced. See Scale Number one in the diagram above. On a 0 to 10 scale, you'd expect a score of 5 to indicate neutrality. However, in NPS, a 5 is classified as a Detractor, a negative response. Only scores of 7 or 8 are considered neutral, categorized as "Passive." This misalignment can lead to confusion and skew results, as most respondents are unaware of how their answers are classified.
We tested this by using red, yellow and green color codes to clarify which responses are negative, neutral, or positive. See scale number two in the diagram above. The results were telling: when respondents better understood the scale, the NPS improved. This suggests many NPS results may reflect a misunderstanding of the scale rather than true sentiment.
In conclusion, the imbalance in the NPS scale is a critical flaw that can misrepresent customer loyalty and satisfaction. It's essential for businesses relying on NPS to recognize this issue and consider its impact on their results.
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