What: A report from The Retail Bulletin on the validity of NPS in the 21st century

Why it is important: Retailers consider NPS as a staple when it comes to customer satisfaction measurement. But is that still valid?

The report examines the challenges and limitations of using Net Promoter Score (NPS) as a metric for customer satisfaction. It suggests NPS alone is not sufficient and should be complemented by other metrics.

The main limitations highlighted are:

• NPS varies by region due to differences in employee turnover and store management.

• NPS is time-sensitive, with "hot" feedback right after purchase being higher than "cold" feedback later on.

• Smaller, local stores tend to score higher NPS than larger chains.

• Using NPS as a bonus metric can corrupt results by pressuring employees.

• Keeping brand promises to customers is key for good NPS.

The report recommends improving NPS by:

• Tracking it over time rather than a one-off score.

• Comparing similar store types/regions.

• Focusing on customers not just the score.

• Showing NPS's link to revenue to prove ROI.

• Using NPS insights to drive internal culture change.

Overall, the ebook suggests NPS has limitations if used alone, but can still provide value if complemented with other customer metrics and used to drive business change. The focus should be on the customer, not just the NPS number.

Are NPS still valid for the new retail age?