Ch.6 · ARN and EUIN Rules · hard

What is the 'net promoter score' (NPS) concept as applied to mutual fund distributor-investor relationships?

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EXPLANATION

Net Promoter Score (NPS) is a customer satisfaction metric measuring how likely investors are to recommend their distributor to friends/family. A high NPS reflects strong trust and service quality — indicating investors feel their distributor genuinely acts in their interest. High-NPS distributors typically have better investor retention and referral-based growth.

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