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> Net promoter score (NPS) is a way of measuring customer satisfaction. How easy/hard is it to fake an NPS score? Is this somehow regulated? Can the company

> Net promoter score (NPS) is a way of measuring customer satisfaction. How easy/hard is it to fake an NPS score? Is this somehow regulated? Can the company only provide its most satisfied customers (which it knows beforehand) and only have them participate to get a good NPS?

stingraycharles 6y ago
NPS can be gamified in any way you want it. If you want to use it as a real metric to improve your product, it’s a great metric. But if you want to use it to convince shareholders your company is very valuable, it’s extremely easy to do so by implementing certain biases.
jmt_ 6y ago
I also have some questions/concerns over the NPS. Online surveys, which is effectively the instrument of NPS, typically yield statistically incorrect data due to, often, some flavor of self-selection bias. If you think of an online survey as an experiment, they rarely allow enough control over the sample to mean much. However, that's not to say it's impossible to properly conduct an NPS, just that it's probably very easy to get wrong which may paint a false picture.
runako 6y ago
Likely this can be easily gamed. But in the context of Snowflake's value, NPS manifests in Net Retention, which is likely to be more difficult to fudge: > For every $1 of revenue Snowflake received from their customers a year ago, that same pool of customers are now paying $1.58. Net Retention is more important, but in this case it also gives credence to the NPS number.
adarioble 6y ago
NPS originally came from car manufactures and industries that produce products that are easy comparable, I.e. how happy are you with the car? Would you recommend BMW to friends? I don’t think it’s that great for software, but it’s very trendy. It can be gamed, like anything else, usually by sending NPS surveys to decision makers who aren’t usually the actual users. Slightly better metric is Customer Effort Score (CEF) which shows how easy is to do business with a company.
itsdrewmiller 6y ago
In the article they list AT&T as having a positive 20 NPS score, which is pretty hard to believe.

stingraycharles 6y ago

NPS can be gamified in any way you want it. If you want to use it as a real metric to improve your product, it’s a great metric. But if you want to use it to convince shareholders your company is very valuable, it’s extremely easy to do so by implementing certain biases.

jmt_ 6y ago

I also have some questions/concerns over the NPS. Online surveys, which is effectively the instrument of NPS, typically yield statistically incorrect data due to, often, some flavor of self-selection bias. If you think of an online survey as an experiment, they rarely allow enough control over the sample to mean much. However, that's not to say it's impossible to properly conduct an NPS, just that it's probably very easy to get wrong which may paint a false picture.

runako 6y ago

Likely this can be easily gamed. But in the context of Snowflake's value, NPS manifests in Net Retention, which is likely to be more difficult to fudge: > For every $1 of revenue Snowflake received from their customers a year ago, that same pool of customers are now paying $1.58. Net Retention is more important, but in this case it also gives credence to the NPS number.

adarioble 6y ago

NPS originally came from car manufactures and industries that produce products that are easy comparable, I.e. how happy are you with the car? Would you recommend BMW to friends? I don’t think it’s that great for software, but it’s very trendy. It can be gamed, like anything else, usually by sending NPS surveys to decision makers who aren’t usually the actual users. Slightly better metric is Customer Effort Score (CEF) which shows how easy is to do business with a company.

itsdrewmiller 6y ago

In the article they list AT&T as having a positive 20 NPS score, which is pretty hard to believe.