Net Promoter - is it valid?
Thursday 15th November 2007In December 2003, noted loyalty consultant Fred Reichheld introduced a new loyalty metric, Net Promoter. Net Promoter is a metric derived from survey responses to a recommend likelihood question.
In a relatively short amount of time Net Promoter has been adopted by some the UK's and USA's largest companies and is even being reported to investors.
This article reviews the statistical validity, reliability and sensitivity of Net Promoter and finds that it does not stand up to academic scrutiny.
We ask - is this a reason for abandoning it or is it still valuable?
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