How much value are your customers getting from your product? Net Promoter Score is one tool to answer this question, but the authors offer another tool: customer surplus value. The idea, which comes from economics, is to ask customers how much money they should give to give up a product for a certain period of time. The more money it costs them to accept, the more valuable the product becomes. LinkedIn's experiment shows how this measure can complement NPS scores as a way to measure customer satisfaction.
In the realm of customer feedback metrics, few have garnered as much attention and adoption as the Net Promoter Score (NPS). Introduced 20 years ago by Frederick Reichheld in his seminal Harvard Business Review article, “The One Number You Need to Grow,” NPS has emerged as an innovative approach to capturing and predicting company growth. Known as Simplicity, a single question that measures how likely a customer is to recommend a product or service to others, this question has become an important tool for businesses to measure customer feedback. Companies across a variety of sectors and geographies have adopted this metric, finding a correlation between high NPS scores and improved profitability, retention, and growth.