How NPS Scores Can Kill Your Marketing Funnel

We explore why the Net Promoter Score, a loyalty metric created by Fred Reichheld and Bain & Company in 2003, has become a dangerous obsession for marketers. While NPS seems simple—'how likely are you to recommend us on a 0–10 scale?'—fixating on it can distort your marketing funnel in perverse ways. We dissect a 2024 Stanford Graduate School of Business study showing that high-NPS customers are often the least profitable because they overuse support and rarely pay full price. We contrast this with the 2018 research by Harvard Business Review's Timothy Keiningham that found NPS correlates poorly with actual revenue growth. Then we look at how two companies handled NPS differently: one software firm fired its highest NPS customers to improve margins, and a retailer learned that low NPS customers often become your best advocates after complaint resolution. If you've ever wondered why your marketing funnel feels healthy but your P&L doesn't, this episode will reframe what loyalty actually means. #NPS #NetPromoterScore #MarketingFunnel #CustomerLoyalty #FredReichheld #BainAndCompany #StanfordGSB #HarvardBusinessReview #TimothyKeiningham #CustomerProfitability #RetentionMarketing #CXMetrics #VoiceOfCustomer #MarketingPodcast #BusinessPodcast #FexingoBusiness #AwarenessToAction #LoyaltyTrap Keep every episode free: buymeacoffee.com/fexingo