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The use of Net Promoter Score (NPS) to predict sales growth : insights from an empirical investigation
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Baehre, Sven, O’Dwyer, Michele, O’Malley, Lisa and Lee, Nick (2022) The use of Net Promoter Score (NPS) to predict sales growth : insights from an empirical investigation. Journal of the Academy of Marketing Science, 50 . pp. 67-84. doi:10.1007/s11747-021-00790-2 ISSN 0092-0703.
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WRAP-use-Net-Promoter-Score-(NPS)-predict-sales-growth-Lee-2021.pdf - Published Version - Requires a PDF viewer. Available under License Creative Commons Attribution 4.0. Download (594Kb) | Preview |
Official URL: https://doi.org/10.1007/s11747-021-00790-2
Abstract
Net Promoter Score (NPS) has been widely adopted by managers as a measure of customer mindset and predictor of sales growth. Over time, practitioners have evolved the use of NPS from its original purpose as a transaction-based customer loyalty metric, towards a metric for tracking overall brand health which includes responses from non-customers. Despite enduring managerial popularity, academics remain skeptical of NPS, citing methodological issues and ongoing concerns with NPS measurement. This study re-visits the use of NPS as a predictor of sales growth by analyzing data from seven brands operating in the U.S. sportswear industry, measured over five years. Our results confirm—within the context of our study—that while the original premise of NPS is reasonable, the methodological concerns raised by academics are valid, and only the more recently developed brand health measure of NPS (using an all potential customer sample) is effective at predicting future sales growth.
Item Type: | Journal Article | ||||||||
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Subjects: | H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management H Social Sciences > HF Commerce |
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Divisions: | Faculty of Social Sciences > Warwick Business School > Marketing Group Faculty of Social Sciences > Warwick Business School |
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Library of Congress Subject Headings (LCSH): | Sales forecasting, Business -- Growth, Organizational effectiveness -- Evaluation, Customer satisfaction -- Evaluation | ||||||||
Journal or Publication Title: | Journal of the Academy of Marketing Science | ||||||||
Publisher: | Springer | ||||||||
ISSN: | 0092-0703 | ||||||||
Official Date: | January 2022 | ||||||||
Dates: |
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Volume: | 50 | ||||||||
Page Range: | pp. 67-84 | ||||||||
DOI: | 10.1007/s11747-021-00790-2 | ||||||||
Status: | Peer Reviewed | ||||||||
Publication Status: | Published | ||||||||
Access rights to Published version: | Open Access (Creative Commons) | ||||||||
Date of first compliant deposit: | 7 July 2021 | ||||||||
Date of first compliant Open Access: | 9 July 2021 |
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