Why Portnox's CEO refuses to measure Net Promoter Score | Denny LeCompte

Portnox is an enterprise access control platform that eliminates passwords and enforces zero trust security. The company was bootstrapped for over a decade, plateauing at a few million in ARR before investors brought in Denny LeCompte as CEO four years ago. Since then, Portnox has grown 8x. But this episode isn't about that growth story. Denny, a former cognitive scientist and professor who taught psychometrics, uses his scientific background to systematically dismantle Net Promoter Score—explaining why it's methodologically flawed, how it misleads organizations, and which metrics actually correlate with business performance. This is a contrarian take grounded in measurement science, not marketing opinion.

Topics Discussed:

• The fundamental psychometric flaws in NPS: why single-item questionnaires are unreliable and why throwing out 7s and 8s violates basic statistical principles
• How NPS scores fluctuate based on survey UI presentation independent of actual customer sentiment
• Why NPS creates incentive structures that encourage gaming rather than improving customer outcomes
• The case for gross revenue retention and net revenue retention as the only ungameable metrics that matter
• How measuring human behavior changes that behavior (the Heisenberg principle applied to business metrics)
• Why investors care about retention rates above 90% but don't ask about NPS scores

GTM Lessons For B2B Founders:

• Single-item questionnaires violate measurement principles: Denny's background in psychometrics immediately flagged NPS as unreliable. One-item measures lack the redundancy needed for reliability, and the methodology of throwing out middle responses (7s and 8s) then subtracting detractors from promoters is statistically nonsensical. At a previous company with thousands of data points, he observed NPS scores drop and rise based solely on how the survey rendered on the page—no business changes, just UI differences. When presentation affects your metric independent of the underlying construct, your instrument is broken. Founders with technical backgrounds should trust their instincts when measurement methodology feels scientifically unsound.
• Compensation drives behavior more than metric accuracy: Portnox structures customer success compensation as 50% gross revenue retention and 50% net revenue retention. These are determined by finance and can't be manipulated. Denny had to rein in his CS team when they became overly focused on time-to-value because any number you give a team becomes their obsession. With NPS, teams game survey timing, cherry-pick recipients, and optimize for score rather than outcome. This is the Heisenberg principle applied to business: measuring changes the behavior. Choose metrics where gaming the number aligns with improving actual business outcomes.
• Investors evaluate retention rates, not satisfaction surveys: When Denny presents gross retention above 90%, investors don't ask about NPS. Renewal behavior reveals actual satisfaction—customers voting with budget rather than survey responses. The test for any metric: "What are we doing differently if this number is up versus down?" If it doesn't drive distinct actions or reveal information not already visible in financials, eliminate it. NPS often becomes a number that exists because "we've always measured it," inherited from previous leadership without questioning its utility.
• Question inherited practices ruthlessly: NPS gained adoption through Harvard Business Review credibility in 2003 and consulting firms building practices around it. The promise of "one number you need" appeals to executives wanting simple solutions. But herd behavior—"everyone else measures it"—perpetuates bad methodology. Denny's advice to founders stuck with NPS: give your team something else to focus on (gross retention is straightforward: don't let customers churn), then stop doing it. Sometimes you need to point to external validation to break internal momentum. The question isn't whether NPS correlates somewhat with growth—it's whether better alternatives exist that can't be gamed.

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