Finally, the evidence we’ve all been waiting for! Here are some quotes from the report that constitute "definitive proof" NPS predicts revenue growth:

“This analysis found a modest correlation [between NPS and growth].”

“The correlation between NPS and future growth ranged from non-existent/negative to very strong.”

“Don’t expect [NPS] to perfectly predict the future in any time period.”

“We found little evidence to suggest that the NPS was superior to customer satisfaction…it offered similar predictive validity to satisfaction but not always and sometimes it was worse.”

“It could simply be that higher sales generate more recommenders and not that more recommenders generate more sales.”

One could just as easily conclude from this research that NPS is inferior to satisfaction as a metric, and is an outcome of growth not a driver - so possibly not predictive at all.

As for the idea that mild correlation = prediction: let’s say we find a modest correlation between people’s height and the distance they live from the equator. If I tell you how tall someone is can you predict where they live? If I tell you where someone lives can you predict how tall they are?

Of course you can’t. 🤣

See this post on LinkedIn