Minimum sample size for estimating the Net Promoter Score under a Bayesian approach

Abstract

Abstract At some moment in our lives, we are probably faced with the following question: How likely is it that you would recommend [company X] to a friend or colleague?. This question is related to the Net Promoter Score (NPS), a simple measure used by several companies as indicator of customer loyalty. Even though it is a well-known measure in the business world, studies that address the statistical properties or the sample size determination problem related to this measure are still scarce. We adopt a Bayesian approach to provide point and interval estimators for the NPS and discuss the determination of the sample size. Computational tools were implemented to use this methodology in practice. An illustrative example with data from financial services is also presented.

Keywords

• Average length criterion
• customer loyalty
• Dirichlet distribution multinomial distribution
• sample size