TITLE

Net Promoter Score Fails the Test

AUTHOR(S)
Sharp, Byron
PUB. DATE
December 2008
SOURCE
Marketing Research;Winter2008, Vol. 20 Issue 4, p28
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article offers opinions on marketing research. The Net Promoter Score, a research metric on customer retention created by consultant Frederick Reichheld, is evaluated. Reichheld's claim that a corporation which could increase its retention rate by five percent could increase profits 100 percent is viewed as invalid and without statistical foundation. It is stated that increasing customer retention actually involves decreasing the rate of customer defection, a process which is largely beyond management's control. Customer defection is said to be dependent on market share and the number of competing brands in a particular market, meaning that defection rates as a measure of brand loyalty are almost impossible to alter permanently.
ACCESSION #
37797515

 

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics