Dispersing the blue smoke

Timothy L. Keiningham et al. publish peer-reviewed research that questions whether the Net Promoter Score metric (promulgated by Fred Reichheld, Bain & Company, and Satmetrix Systems, Inc.) does a better job than other metrics of explaining business performance. Keiningham’s paper, “A Longitudinal Examination of Net Promoter and Firm Revenue Growth” says, from the abstract:

Using industries Reichheld cites as exemplars of Net Promoter, the research fails to replicate his assertions regarding the “clear superiority” of Net Promoter compared with other measures in those industries.

Stefan Kolle’s post includes an extended e-mail exchange with Keiningham, in which he is even more pointed in its criticism of Reichheld.