The Influence of the Net Promoter Score (NPS) on Actual Online Word-of-Mouth

The Net Promoter Score (NPS) is a widely used measurement tool for customer loyalty. While common practice for many companies across multiple industries, academics are not convinced about the NPS method. The major concern is whether the NPS method predicts firm profitability. Against this backdrop, this research aims to provide more insights into the relationship between customers’ NPS and online word-of-mouth behavior. Results from an ordered logit model indicate that there is a significant relationship between the net Promoter score and social media sentiment (online word-of-mouth). Based on this finding, firms are recommended to invest in better service to increase the NPS score, and in turn its profitability.