Is NPS something unique to Alteryx, or do other companies use it, too?
NPS or Net Promoter Score is a simple question that has found some traction in the business world.
Here’s what Wikipedia has to say about it:
"Net Promoter or Net Promoter Score (NPS) is a management tool that can be used to gauge the loyalty of a firm’s customer relationships. It serves as an alternative to traditional customer satisfaction research and claims to be correlated with revenue growth. NPS has been widely adopted with more than two thirds of Fortune 1000 companies using the metric. The tool aims to measure the loyalty that exists between a provider and a consumer. The provider can be a company, employer or any other entity. The provider is the entity that is asking the questions on the NPS survey. The consumer is the customer, employee, or respondent to an NPS survey. An NPS can be as low as -100 (every respondent is a “detractor”) or as high as +100 (every respondent is a “promoter”). A positive NPS (i.e., one that is higher than zero) is generally deemed good, and an NPS of +50 is generally deemed excellent.
The Net Promoter Score is calculated based on responses to a single question: How likely is it that you would recommend our company/product/service to a friend or colleague? The scoring for this answer is most often based on a 0 to 10 scale.
Those who respond with a score of 9 to 10 are called Promoters, and are considered likely to exhibit value-creating behaviors, such as buying more, remaining customers for longer, and making more positive referrals to other potential customers. Those who respond with a score of 0 to 6 are labeled Detractors, and they are believed to be less likely to exhibit the value-creating behaviors. Responses of 7 and 8 are labeled Passives, and their behavior falls between Promoters and Detractors. The Net Promoter Score is calculated by subtracting the percentage of customers who are Detractors from the percentage of customers who are Promoters. For purposes of calculating a Net Promoter Score, Passives count toward the total number of respondents, thus decreasing the percentage of detractors and promoters and pushing the net score toward 0."
I personally take the score itself for overrated. It only becomes helpful if you find out why some folks love you and others not, then do sthg about it. Without such action, the score itself is nice to have but not necessarily a data point that I would pay too much attention to. Part of the reason is that the 11-point scale makes the results quite a hairball. Imagine 10% of customers rate you 8 instead of 9 while 50% of customers jump from 0 to 6. Clearly you have improved overall but your NPS score is down (you lost 10% promoters without a change in detractors). There are plenty such examples how the score can be quetsionable. I also doubt that the link between the scores and future behaviour is nearly as strong as the authors suggest.
It remains a datapoint for which I have a casual interest. I recently heard of a company with an NPS score >90. (Was that NTNX?). That is a seriously strong result that has to mean sthg (and maybe it only meant that they got the tabulation wrong
But I wouldn’t expect comapnies to share their scores. They zig-zag big time and as a company you don’t want to get hung up on discussing why your score fell by 5% in the last quarter.