producthabits.com · Free post · Metrics, data & experimentation · Discovery & customer research

Net Promoter Score, The Ecstasy of Business Metrics?

Hiten ShahNov 21, 20187 min
Sourceproducthabits.com
KindFree post
PublishedNov 21, 2018
Originalproducthabits.com ↗
N:

Hiten Shah responds to critics who call Net Promoter Score (NPS) harmful or overrated, arguing the metric is not the problem but how it is used. He contends NPS is useful only as one input among many feedback methods and only when teams act on it. The essay offers a practical playbook: follow up with promoters, passives, and detractors individually; segment scores by plan, company size, user tenure, and lifecycle stage; and use the results to align product, customer success, and the wider company. Its core point is that any feedback, including NPS, matters only if it leads to a better product.

01Key takeaways

  • Treat NPS as one input alongside interviews, usability tests, and other feedback, not as a standalone success metric.
  • Follow up individually with promoters, passives, and detractors to learn the reasons behind their scores.
  • Ask promoters for reviews, case studies, or interviews while they are still enthusiastic.
  • Segment NPS by plan, company size, tenure, and journey stage, and analyze open-ended answers within each segment.
  • Use NPS discussions to bring product and customer success together and to inform the roadmap.
  • Never inflate or game NPS for executives or bonuses; the score is only valuable when it drives product improvements.

02Key sections

The Case Against NPS
The piece opens with criticism of NPS from practitioners who argue the score is calculated poorly, lacks correlation with growth, and gets misused. The author notes that critics often point at misuse rather than the metric itself.
Act on Each Score Group
Promoters can be asked for reviews, case studies, or interviews, while passives reveal what keeps them from becoming promoters. Detractors offer candid, sometimes market-opening insight, and following up builds brand goodwill.
Segment the Results
A single NPS number is not actionable on its own. Calculating scores by segments such as pricing plan, company size, user tenure, and journey stage, then reading open-ended responses, reveals where the real value lies.
Use NPS to Align the Team
NPS should spark cross-functional conversations between product and customer success rather than serve as a vanity or reporting metric. Sharing findings company-wide helps teams agree on problems and track whether changes made a difference.

03From the post

“Net Promoter Score® (NPS) has come under scrutiny. Everything from the way it’s calculated, the 11-point scale used in the survey, and its lack of correlation to company growth. “It… Keep reading The post Net Promoter Score, The Ecstasy of Business Metrics? appeared first on Product Habits.”

“It doesn’t help businesses grow. It doesn’t even tell the management how loyal the customer is.”Hiten Shah · producthabits.com
“When used as one of the many ways a company gathers and acts on feedback, NPS is quite powerful.”Hiten Shah · producthabits.com
“Ultimately, any type of customer feedback you get only matters if it helps make the product better.”Hiten Shah · producthabits.com

04Frameworks mentioned

Summary and takeaways written by PM Atlas; quotes are short excerpts. © the original author.