Statistical validation of critical aspects of the Net Promoter Score

IF 3.8 Q2 MANAGEMENT TQM Journal Pub Date : 2023-04-25 DOI:10.1108/tqm-05-2022-0170
M. Cazzaro, P. Chiodini
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Abstract

PurposeAlthough the Net Promoter Score (NPS) index is simple, NPS has weaknesses that make NPS's interpretation misleading. The main criticism is that identical index values can correspond to different levels of customer loyalty. This makes difficult to determine whether the company is improving/deteriorating in two different years. The authors describe the application of statistical tools to establish whether identical values may/may not be considered similar under statistical hypotheses.Design/methodology/approachEqual NPSs with a “similar” component composition should have a two-way table satisfying marginal homogeneity hypothesis. The authors compare the marginals using a cumulative marginal logit model that assumes a proportional odds structure: the model has the same effect for each logit. Marginal homogeneity corresponds to null effect. If the marginal homogeneity hypothesis is rejected, the cumulative odds ratio becomes a tool for measuring the proportionality between the odds.FindingsThe authors propose an algorithm that helps managers in their decision-making process. The authors' methodology provides a statistical tool to recognize customer base compositions. The authors suggest a statistical test of the marginal distribution homogeneity of the table representing the index compositions at two times. Through the calculation of cumulative odds ratios, the authors discriminate against the hypothesis of equality of the NPS.Originality/valueThe authors' contribution provides a statistical alternative that can be easily implemented by business operators to fill the known shortcomings of the index in the customer satisfaction's context. This paper confirms that although a single number summarizes and communicates a complex situation very quickly, the number is ambiguous and unreliable if not accompanied by other tools.
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净推荐值关键方面的统计验证
目的尽管净发起人得分(NPS)指数很简单,但NPS的弱点使NPS的解释具有误导性。主要的批评是,相同的指标值可以对应不同级别的客户忠诚度。这使得很难确定该公司在不同的两年内是否在改善/恶化。作者描述了统计工具的应用,以确定在统计假设下,相同的值是否可以被认为是相似的。设计/方法/方法具有“相似”成分组成的同等NPS应具有满足边际同质性假设的双向表。作者使用假设比例优势结构的累积边际logit模型来比较边际:该模型对每个logit都有相同的效果。边际同质性对应于零效应。如果边际同质性假设被拒绝,累积优势比将成为衡量优势之间比例的工具。发现作者提出了一种算法,可以帮助管理者进行决策。作者的方法提供了一个统计工具来识别客户群的组成。作者建议对两次代表指数组成的表的边际分布同质性进行统计检验。通过计算累积优势比,作者对NPS.Originality/value相等的假设进行了歧视。作者的贡献提供了一种统计替代方案,企业经营者可以很容易地实施该方案,以填补客户满意度背景下该指数的已知缺点。本文证实,尽管一个数字可以很快地总结和传达复杂的情况,但如果没有其他工具,这个数字是模糊和不可靠的。
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来源期刊
TQM Journal
TQM Journal Business, Management and Accounting-Business, Management and Accounting (all)
CiteScore
9.10
自引率
0.00%
发文量
114
期刊介绍: Commitment to quality is essential if companies are to succeed in a commercial environment which will be virtually unrecognizable in less than a decade. Changing attitudes, changing perspectives and changing priorities will revolutionise the structure and philosophy of future business practice - and TQM will be at the heart of that metamorphosis. All aspects of preparing for, developing, introducing, managing and evaluating TQM initiatives.
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