Companies Are Misusing Net Promoter Scores: Here’s How to Fix That

Net promoter score (NPS) first captured the imagination of the C-Suite in the early aughts (2000-2009) due to the customer insights it provided and its simplicity. In a nutshell, it's a single number that tells companies how satisfied their customers are.

But despite how revolutionary NPS was when it was introduced, the metric has serious limitations when it comes to driving profitable growth. Intrinsically, it assumes all customers are equally valuable to the company. They’re not. The most effective way for CMOs and CFOs to use NPS to guide their growth and drive their stock price is to pair it with customer lifetime value (CLV)...