When a measure becomes a target, it ceases to be a good measure.Marilyn Strathern, âImproving Ratingsâ in European Review
In the face of the current complex business environment, most businesses strive to seek the simplified so that they can gain clarity and make effective decisions quickly.
Itâs this desire that has produced flawed metrics like the Net Promoter Score (NPS)âa single measure that supposedly predicts business growth.[1. Frederick F. Reichheld, "The One Number You Need to Grow," Harvard Business Review, 2003.] Despite the desire, there is no holy grail metric: The original NPS study only verified past behavior, despite claims of being able to predict future behavior; and, there is enough evidence that should make any company hesitant to use it as an indicator.[2. Byron Sharp, "Net Promoter Score (NPS) Does Not Predict Growthâitâs fake science,â Marketing Science, 2008.][3. Timothy L. Kennington, Bruce Cooil, Tor Wallin Andreassen, and Lerzan Aksoy, "A Longitudinal Examination of Net Promoter and Firm Revenue Growth,â Journal of Marketing, 2007.][4. Evert de Haan, Peter C. Verhoel, and Thorston Wiesel, âThe predictive ability of different customer feedback metrics for retention," International Journal of Research in Marketing, 2015.]