Net Promoter Score (NPS) has been widely adopted by managers as a measure of customer mindset and predictor of sales growth.
Over time, practitioners have evolved the use of NPS from its original purpose as a transaction-based customer loyalty metric,
towards a metric for tracking overall brand health which includes responses from non-customers. Despite enduring managerial
popularity, academics remain skeptical of NPS, citing methodological issues and ongoing concerns with NPS measurement. This
study re-visits the use of NPS as a predictor of sales growth by analyzing data from seven brands operating in the U.S. sportswear
industry, measured over five years. Our results confirm—within the context of our study—that while the original premise of NPS
is reasonable, the methodological concerns raised by academics are valid, and only the more recently developed brand health
measure of NPS (using an all potential customer sample) is effective at predicting future sales growth.