NPS and Online WOM: Investigating the Relationship Between Customers' Promoter Scores and eWOM Behavior

Area of Science:

• Business and Management
• Marketing
• Consumer Behavior

Background:

• The Net Promoter Score (NPS) is widely used to measure customer loyalty and predict company growth.
• A significant concern is the undifferentiated treatment of customer scores, potentially misrepresenting loyalty.
• Existing research often overlooks the nuances of customer segments beyond promoters and detractors.

Purpose of the Study:

• To investigate the relationship between individual customer promoter scores and their online word-of-mouth (eWOM) behavior.
• To analyze how different NPS customer categories (promoters, passives, detractors) influence the valence of their eWOM.
• To determine if passives, often excluded from NPS calculations, warrant specific managerial attention.

Main Methods:

• Utilized a unique dataset combining customer promoter scores with their online word-of-mouth (eWOM) activities.
• Analyzed the valence of eWOM messages generated by 189 customers across NPS categories.
• Employed statistical analysis to identify correlations between promoter scores and eWOM valence.

Main Results:

• A positive correlation was found between customers' promoter scores and the valence of their online messages.
• Promoters and detractors exhibited homogeneous eWOM message valence.
• Passives demonstrated heterogeneous eWOM message valence, indicating varied online communication patterns.

Conclusions:

• While passives do not directly impact NPS calculations, their varied eWOM valence suggests they are a critical segment for further analysis.
• Companies should actively monitor and engage with passive customers due to their potential influence and heterogeneous communication.
• Rethinking the uniform treatment of NPS scores is crucial for a more accurate understanding of customer loyalty and behavior.