The Controversial Truth Behind Net Promoter Scores: Why Companies Still Rely on Them
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The Controversial Truth Behind Net Promoter Scores: Why Companies Still Rely on Them

Industry Insights
nps
customerloyalty
businessstrategy
customerexperience
industrytrends
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Summary:

  • Net Promoter Scores (NPS) remain a controversial yet widely used metric in business, despite criticism.

  • Commonwealth Bank aimed for an NPS of +30 by 2026 but has seen only slight improvements, from 4 to 8.4 among consumers.

  • Businesses adapt NPS into categories like "strategic" and "service" to align with executive expectations.

  • The slow progress in improving NPS scores questions the metric's effectiveness in measuring true customer loyalty.

  • Deeper strategies beyond NPS may be required to significantly enhance customer experience and satisfaction.

The Persistent Use of Net Promoter Scores in Business

Despite the controversy surrounding Net Promoter Scores (NPS), companies like Commonwealth Bank continue to set ambitious targets based on this metric. In February 2023, CBA's CEO Matt Comyn announced a goal to achieve an NPS of +30 within three years. However, as of June 2025, the bank's scores have seen minimal improvement, moving from about 4 to 8.4 among consumers and from -6 to -2.7 among businesses.

Why the Slow Progress?

The modest increase in CBA's NPS highlights the challenges businesses face in significantly improving customer satisfaction and loyalty. NPS, a measure of how likely customers are to recommend a company's products or services, is often criticized for its simplicity and potential for manipulation. Yet, firms persist in using it, adapting the metric into various forms like "strategic," "service," and "journey" NPS to meet their—and their executives'—expectations.

The Bigger Picture

This scenario raises questions about the effectiveness of NPS as a standalone metric for gauging customer loyalty and business success. While it provides a snapshot of customer sentiment, the slow progress in improving scores suggests that deeper, more comprehensive strategies may be necessary to truly enhance customer experience and satisfaction.

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