The ultimate or the last question? How NPS could compromise your understanding

ultimate questionThe number of top executives who is asking for NPS (Net Promoter Score) has grown permanently since the famous article by Bain & Company mentor Frederick F. Reichheld (The One Number You Need to Grow, Harvard Business Review, December 2003). Main reason of such success is not the NPS’s predictive ability but its own simplicity.

Top executives hasn’t enough time to read huge amounts of pages describing complex (although elegant) analysis or sophisticated indicators. NPS seems to provide a good recipe: it is simple to explain, it is short (“The one number…“) to show, it is clear to understand.

Like several examples we can catch from other contexts, NPS is a “postulate-driven” assumption: if I recommend, I am a promoter; if i don’t recommend, I am a detractor. Like other postulates, NPS has a corollary: company revenues are predicted by NPS.

I don’t agree. Simply. I don’t  mean I don’t care Top executives’ need to receive few, clear and self-standing results that could provide a compass for growth. I strongly suggest to understand that a postulate has to be weighted before to be accepted.

A careful observation of NPS could drive us to a healthy criticism. And I say healthy in an ontological meaning (every theory must be put to the test), but also in a restricted meaning (if you want a compass for growth, be sure it is calibrated).

I will describe main mistakes that may occur to you if you don’t accept a healthy criticism on NPS. Mistakes are divided between

A. NPS’s own lack of foundation

B. Self standing NPS risks

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Love letter from a statistician

I am quite sure I work for an “industry”. Foreign countries colleagues would agree with me, probably. Italian colleagues would say “Are you sure?”.

Proliferation of literature, cinema, theatre works is a clear evidence of the existence of an “industry”, lawyers know what I mean.

It’s so strange… even housewives have a TV series, not to mention politicians, cops, journalists…

No one is preparing a series for Fox channels or a great movie with Robert Redford playing as a market researcher (I also imagine Clint Eastwood as a bungled drunk statistician).

I am afraid Market Research could enjoy jokes only: here it is a classical “love letter” from a statistician.