Track: Business Management

Abstract

The objective of this research was to analyze the relationship between the Net Promoter Score (NPS), broadly used in industry, with dichotomous word-of-mouth (WOM) metric to gain more insight into customer satisfaction. The NPS is an indicator, which its author claims to be the ultimate question that industry practitioners should be increasing. The NPS system works with a single question: How likely are you to recommend our company to friends and family? This methodology classifies the status of interviewed clients into three groups using an eleven-point Likert scale: the ones answering from 0 to 6 are treated like detractors, the ones answering 7 and 8 are treated like passives and the ones answering 9 and 10 are treated like promoters. The methodology of this research was quantitative and exploratory. The data collection was through a probabilistic approach with a self-administered survey presented by waiters on a tablet in a full-service restaurant. The chosen statistical method was a logit regression towards suggesting a scale transformation; the reason to do so is to face one of the most criticized characteristics of the NPS system, which is the lack of justification while clustering. The results show evidence that the relationship between metrics is statistically significant. The originality of the article resides in the contribution of a complementary metric on the NPS system. Instead of making three big groups, the logit approach comes up with a probability of word-of-mouth intention for each of the responses to achieve more insight for each type of client in the original classification.