Information Management: The Limitations of Net Promoter Score

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Teradata Employee

Our customers are finding net promoter scores insufficient in gauging the satisfaction of their own customers. As John Thuma and I discussed in a recent Q&A, net promoter scores (NPS) only provide a static snapshot of what an individual feels like at a point in time. NPS provides no context into the circumstances and events that led to an individual’s response.


Information Management recently suggested that big data analytics techniques on the vast amounts of data companies maintain on their customers can provide much deeper insights than NPS. In his article “How Big Data Analytics Will Displace Net Promoter Score,” Tony Cosentino states, “the advent of big data systems brings the value and the accuracy of NPS into question.”


“(NPS) and similar loyalty metrics face displacement by big data analytics capabilities that can replace stated behavior and survey-based attitudinal data with actual behavioral data (sometimes called revealed behavior) combined with unstructured data sources such as social media,” Mr. Cosentino writes. “Revealed behavior shows what people have actually done and thus is a better predictor of what they will do in the future than what they say they have done or intend to do in the future. With interaction through various customer touch points (the omnichannel approach) it is possible to measure both attitudes and revealed behavior in a digital format and to analyze such data in an integrated fashion.”


At Teradata, we agree 100 percent. That’s why we launched the Teradata Aster customer satisfaction index (CSI) solution. Our CSI solution makes it incredibly easy to incorporate data from all customer touch points and apply advanced analytics techniques to get an accurate picture of an individual customer’s satisfaction. We are seeing that the solution is incredibly useful in reducing churn and improving loyalty.


Check out this abbreviated transcript our Q&A on CSI to learn more. You can also watch our on-demand webcast for an overview and demo. Or feel free to send me a note at ryan.garrett@teradata.com. If you’re using NPS to gauge customer satisfaction, prepare to be blown away by the insights that big data analytics on your customer data will reveal.