1、Net Promoter Score: A Literature Review and Perspective1.ACSIAmerican Customer Satisfaction IndexLeading index for customer loyalty/satisfaction until NPSMain aspectsOverall satisfactionExpectancy disconfirmationActual performance vs. the idealMain competition is NPSFor more information on ACSI, vis

2、it For an example see Turel (2004), Appendix2.What is NPS?Based on “recommend intentionHow likely is it that you will recommend us to a friend or colleague?0 to 10 Net Promoter Score= % promoters (9-10) minus % detractors (0-6)Increasing promoters and decreasing detractors is key to growthReichheld

3、(2003)3.Controversy over NPSDebate over NPS as “the ultimate question has surfacedCritics (Keiningham et al.)Supporters (Reichheld)4.Weaknesses of NPSNot informative, not useful when it stands aloneNot the best predictor of growthToo simplistic to represent all facets of customer loyaltyKeiningham (

4、2007)5.Other Issues with NPSNot the cause of growthan indicationCategorization of customers is broadNPS=40Brandt (2007), Mitchell (2021)6.In a nutshell This is not to discount their importance, but to point to the fact that any single metric designed to explain customer behavior across a diverse cus

5、tomer base is unlikely to be an adequate gauge upon which managers can act.Keiningham et al. (2007, p.378)7.Strengths of NPSExcellent starting pointIdentifies most valuable customersStandard question and scale It makes sense and it works (with feedback)Cardis (2021), Anstead (2021), Blasberg et al.

6、(2021) Mortimer (2007), Martin (2021)8. Just ask: does it make logical, common sense to you? Yeah, it does.Reichheld, in an interview with Mortimer (2007)9.Implementation of NPSA philosophySome sectors discussed moreRitson (2007), Auda (2007), Tiltman (2007), Reichheld (2003)10.NPS and Financial Ser

7、vicesFinancial services consistently have lower NPS compared to other sectors NPS highly strongly related to revenue growth for bankingsingle most reliable predictor4 key drivers of NPS in bankingTiltman (2007), Keiningham (2007), Brandt (2007)11.What does NPS mean for financial services?Long-term s

8、trategyNon-traditional (i.e. online) banks have grown rapidly and have higher NPSInterpret NPS carefullyStay invested in mission for satisfied customersBrandt (2007)12.How to Use NPS EffectivelyKnow your customers and what they wantFollow upCollect data regularlyAct on feedbackMittal & Kamakura (200

9、1), Blasberg (2021), Nicks (2006)13.The Bottom LineNPS is a jumping off pointTells you how many promoters and how many detractors you haveAllows for comparison relative to other companiesServes as gauge for customer loyaltybut follow-up is a must.14.Future ResearchNPS in the B2B contextNPS in financ

10、ial services other than banking15.ReferencesAnstead, M. (2021). How & why to use net promoter scores. Credit Union Journal, 18 February: 8.Auda, M. (2007) Net promoter score: What is it and should your company be using it? MRPerspectives: Emerging Trends, Topics, and Best Practices in Market Researc

11、h, 22 June.Blasberg, J., Vishwanath, V., & Allen, J. (2021). Tools for converting consumersinto advocates. Strategy & Leadership, 36(2), 16-23.Brandt, D. R. (2007). For Good Measure. Marketing Management 16(1): 20-25. Cardis, P. (2021) A score worth keeping. Professional Builder, January.Gigliotti,

12、A., Meyers, J., Morgan, N. A., Pingitore, G., & Rego, L. L. (2007). NPS not the only way. Marketing News, 15 September: 48.Keiningham, T. L., Cooil, B., Andreassen, T. W., & Aksoy, L.(2007a). A Longitudinal Examination of Net Promoter and Firm Revenue Growth. Journal of Marketing 71(3): 39-51.Martin

13、, J. (2021). Get customers to sell for you. FSB: Fortune Small Business, 18(5).Mittal, V., & Kamakura, W.A. (2001). Satisfaction, repurchase intent, repurchase behavior: Investigating the moderating effect of customer characteristics. Journal of Marketing Research, 38, 131-142.Mitchell, A. (2021). T

14、he only number you need to know does not add up to much. Marketing, 3 June: 22.Mortimer, R. (2007). Reichheld rates reputation. Brand Strategy, October.Nicks, S. (2006). What not to do with net promoter. BusinessWeek Online, 1 August:12. Reichheld, F. (2003). The one number you need to grow. Harvard Business Review, December: 1.Ritson, M. (2007). Simple, a bit sloppy, but not stupid. Marketing, 5 September.Thompson, B. (2007). Find the ultimate loyalty metric to grow your business. Customer Think: Customer-Centric Business Strategy, 1 October.Ti