Satisfaction as a predictor of future performance

a replication

Jenny van Doorn, Peter S.H. Leeflang, Marleen Tijs

Research output: Contribution to journalArticle

Abstract

Since the introduction of the Net Promoter concept there has been a vivid and ongoing debate among academics and practitioners about the performance of the Net Promoter Score (NPS) in comparison to other customer metrics, such as customer satisfaction, to predict company growth rates. We report results from a study using data from customers and firms in the Netherlands on the relationship between different satisfaction and loyalty metrics as well as the NPS with sales revenue growth, gross margins and net operating cash flows. We find that all metrics perform equally well in predicting current gross margins and current sales revenue growth and equally poor for predicting future sales growth and gross margins as well as current and future net cash flows. The NPS is neither superior nor inferior to other metrics. Taken together, our study suggests that the predictive capability of customer metrics, such as NPS, for future company growth rates is limited.

Original languageEnglish
Pages (from-to)314-318
Number of pages5
JournalInternational Journal of Research in Marketing
Volume30
Issue number3
Early online date3 Jun 2013
DOIs
Publication statusPublished - Sep 2013

Fingerprint

Predictors
Replication
Margin
Company growth
Revenue growth
Sales growth
The Netherlands
Loyalty
Customer satisfaction
Operating cash flows
Cash flow

Bibliographical note

Following is a Publisher's Note published in van Doorn, J., Leeflang, P. S. H., & Tijs, M. (2013). Satisfaction as a predictor of future performance: Aa replication. International journal of research in marketing, 30(4), 434.

«The publisher regrets that due to an error in production in the [...] article, which was published in the issue 30/3, the following texts were missing from the final version of the article:

* On page 314, the text : “ the individual responses to an overall satisfaction, a multi-item satis-” between the texts “We averaged ...” and “faction (Cronbach's alpha=.76)” was missing.

* On page 316, the text “(promoters). The data for the measures of sales growth, gross margin” between the texts “answering with 8–10” and “and
net operating” was missing.

However the above-mentioned missing texts were incorporated to the online version. The readers are advised to refer to the online version for the
citation purposes.

The publisher sincerely apologizes to the authors and the readers for any inconvenience this error may have caused.»

Cite this

van Doorn, Jenny ; Leeflang, Peter S.H. ; Tijs, Marleen. / Satisfaction as a predictor of future performance : a replication. In: International Journal of Research in Marketing. 2013 ; Vol. 30, No. 3. pp. 314-318.
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Satisfaction as a predictor of future performance : a replication. / van Doorn, Jenny; Leeflang, Peter S.H.; Tijs, Marleen.

In: International Journal of Research in Marketing, Vol. 30, No. 3, 09.2013, p. 314-318.

Research output: Contribution to journalArticle

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