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by SanjayMehta 497 days ago
I never understood the logic behind that asymmetric ranking scale.

Around 16 years ago our CEO was talked into using this. After 3 quarters of using it, he killed it because it wasn’t making any visible change in sales; the only metric he cared about.

1 comments

Essentially it says few customers will move the needle on bringing you new business, only the ones who rave wildly about you. Hence, "Customer obsession" as Amazon's Bezos used to put it.

Since NPS and changes in NPS is measured by surveys, not attributing individual sales, it's a KPI that's gameable (especially when used on its own); near-impossible to tell whether "improving" NPS in some existing-customer segment from '5' to '7' results in anything tangible. On the other hand you can actually measure sales and attribute which channel they came from.

There's irony in bringing up Amazon here: From what I've seen, the thing most people rave about when it comes to Amazon is it's customer service. Everything else is pretty mid: the products are poor quality, sometimes counterfeit and if you are not careful way overpriced.

Amazon is not selling customer service as a separate product, yet that's the product that most customers really rave about, even though they don't really like anything else about Amazon.

I said "used to put it". In the early days of Amazon, it totally differentiated itself from other online and brick-and-mortar sellers of books(/CDs/etc.) on price, speed, accuracy, customer support, responsiveness.

Obviously it has evolved since into a huge organization and many other things have changed.