Net Promoter News: Scottrade Invests in Loyalty, Reaps Windfall, Kohl’s and Macy’s are NPS Catwalk Queens; Walmart a Fashion Disaster, Dell makes Inspired Acquisition, Execs *Heart* Net Promoter
Scottrade profits from high customer service returns
Scottrade has announced to the world that it scored the highest in customer loyalty in the brokerage and investment category in the recent US Net Promoter Benchmark Study by Satmetrix.
This strong performance is definitely unusual for financial services brand, considering the robust criticisms and headwinds the sector has faced in the last few years.
And perhaps even more impressive, the self-puffer claims not only that the company’s growth from its beginning in 1980 has been entirely organic, but that it has never closed an office or had to lay off an associate. Bearing in mind recent crises and obstacles this would be a great achievement for a company with 50 branch offices. But for a company with over 500 branch offices such as Scottrade, I think we can safely call it exceptional.
Women’s clothing: Kohl’s and Macy’s are the new black, Walmart the uninspiring beige
New Net Promoter research by BigInsight that analyzed the top five US retailers for Women’s Clothing (Kohl’s, Walmart, Macy’s, JC Penney, Target) throws up some interesting insights:
- Of the five, the most heavily advocated brands by a long shot are Kohl’s, Macy’s and JC Penney, all of which are department stores (as opposed to the discount options of Target and Walmart).
- For Kohl’s and JC Penney, price and selection were the key reasons that drive shoppers to make their purchases, but for Macy’s, it was quality and selection.
- Walmart was the only retailer of the five to calculate a negative score (-10.3).
There are several takeaway here for clothing retailers. But for shoppers there’s only one: If you want to pleasantly surprise your female friends and loved ones, visit discount retailers at your peril. The BIG Consumer Blog
Dell acquires AppAssure, based in part on Net Promoter Score
Dell has announced that it is acquiring software firm AppAssure, which it says will become the company’s primary backup offering targeted at small to medium-sized businesses.
According to Brett Roscoe, general manager and of data management solutions at Dell Storage, the key factors in the decision-making process were that it was going through a huge growth phase, and that this was complemented by Net Promoter Scores that were “off the charts.”
We’re always interested to read about high Net Promoter Scores that correlate with business growth, and it will be interesting to check in on this acquisition in a year or so to see if the momentum has continued. In the meantime, this appears to be an inspired move by Dell. ARN
Austin Benn outperforms in advocacy, falls short in transparency
This week UK recruitment solutions firm Austin Benn trumpeted a Net Promoter Score of +72 on its website, and says its nearest competitor comes in at +56.
While both of these scores are exceptionally strong, details on the site are pretty light. In the interests of transparency, we’d love to know more details on who did the work and sample size. The usual basics. (Plus, a small #fail. They tell us “*Net Promoter methodology based around customers scoring given factors on a scale of 1 to 10″ – should have used standardised 0 – 10 for accurate results).
Austin Benn – if you’re reading this please feel free to add this to your NPS CV, and re-apply for the top Net Promoter spot! Austin Benn
A third of execs claim to use Net Promoter
According to Acxiom and Loyalty 360, Net Promoter is one of the most popular metrics used by CXOs as part of their customer retention strategies. So popular, in fact, that approximately one third of those surveyed claiming they use it – a big number indeed and somewhat higher than we may have estimated.
Perhaps in a related matter, less than half agree that they know who their most loyal customers are. Marketing Charts
In Brief: Other Net Promoter news this week
- CustomerGauge’s Australian partner Genroe discusses the three critical elements of Customer Loyalty surveys
- The Motley Fool sings the praises of Net Promoter-using cloud computing specialists Rackspace
- Costco claims highest Net Promoter Score among major department, wholesale and specialty retailers in recent survey by Satmetrix
- CustomerGauge followed up the “Monday Effect” news in last weeks Net Promoter News by looking at some data in They Don’t Like Mondays. Or Do They?
Net Promoter News: Labor Finders work 63, JUNK clears 80, Schwab long on 46, NPS Comes out of Closet at 80
News that the world of market research seems to be coming to its senses. This item caught our attention: Not Part of the Future: Long Surveys. Money quote: “One current element of market research that is not probable or preferred is the LONG survey.” (source). Another from the superbly named Bad Research; No Biscuit asked “What in the world can you learn from a sixty minute survey that you can’t learn from a 5-minute one?” (Just Say No Already). Finally in this group: “Customer Sat. studies used to be overtly long and terrifying – until Bain, McKinsey and BCG told all the CEO’s of the world that the only thing they should care about is the single question on “How likely are you to recommend?”” (source).
Our stand on this: The survey of the future will be a Net Promoter survey and like have Two Questions, tops. Oh wait – the future is here today! Best example: “pure Net Promoter implementation: two questions using simple, clean interface and minimal hassle for the customer!” Source: Vivmag, Survey hall of fame and shame)
Satmetrix publishes Net Promoter Leaders
Satmetrix released 2010 Net Promoter Industry Benchmarks for the insurance, financial services, airlines, telecommunications, technology, retail and online services industries. Some highlights: USAA 81, Apple 78, Amazon.com 71, Trader Joe’s 68, Wegmans 67, Costco 66, eBay 65, Facebook 65, Jet Blue 64, Google 63. Other notables: Insurance: Geico 41. Health insurance: Cigna -28.
Retail drill down: Amazon’s score drooped from 74% to 71%, eBay improved from 61% to 65% and Barnes & Noble pushed from 58% to 59%. eBay and Amazon had just 5% of their customers categorized as detractors. Among multichannel retailers, both Best Buy Co. Inc. and Wal-Mart Stores Inc.’s online stores had higher NPS scores than the bricks-and-mortar stores with scores of 45% and 46%, respectively, compared to in-store scores of 29% and 41%. Conversely, Target Corp.’s in-store score was 52%, compared to its online score of 44%. Widely covered here (RW), here (own) and here (IR)
Labor Finders at 63.
200 branches Labor Finders International, largest privately held industrial labor staffer in US beat all-comers in Inavero/CareerBuilder Best of Staffing 2010 NPS smackdown. Inavero claim staffing industry averages Net Promoter score of 40%. Labor Finders clocked in a score of 63%. Source – self puff
PrintAudit impress at 76.
The Canadian print management outfit PrintAudit self-scores NPS 76. Run o’the mill self puff with zero details on methods, but a quite impressive page with 250 testimonials on (some looked like they might have been politely persuaded. No matter, still some achievement). Source: Horse’s mouth.
Any Old Iron?
Brian Scudamore’s 1-800-GOT-JUNK junk removal business with 250 franchises is a word-of-mouth driven business. He explains NPS-led philosophy and posts a score of 80. Company drills down NPS to franchise, even to the truck level. Source
Schwab brokers 46
Charles Schwab go long on NPS with a new high of 46, leading the Brokerage and Investment sector. Source
Fight! PEER1 vs Allcomers
Hoster PEER1 says its NPS is 36, trouncing the rest of the IT services industry’s lowly 7. In a confrontational statement MD Dominic Monkhouse calls out his rivals: “To improve transparency over service quality PEER 1 Hosting believes all serious hosting service providers should measure and publish their Net Promoter Score“. No mention of sample size or details, natch, but we like the way this one is going. source
Out of the Closet at 80
Wardrobe-sters California Closets (New England Franchise) have been measuring their Net Promoter Score. Striving to make a difference in their customers homes and lives, they have found a convenient tie rack to tidily hang their NPS of 79.9. Source: CupboardLove
ABB Engineers Customer Experience via NPS
Bill Black, Group Senior Qual and Ops Excellence Veep at ABB yaks about customer confidence best practices for maintaining and improving customer confidence in a podcast, highlighting how they use Net Promoter Score as a key customer sat. measure. Advice on external/internal satisfaction, plus how to turn around a drop in confidence. Source
Award for best use of decimal points in an NPS Press Release
Ski Butlers (seen around this parish before) got a new NPS score. 86.39 percent. Loving the precision! Source: BadMathbyPRpeople
And finally… Zappos sues Disney
We racked our brains for another suitable April Fool on Net Promoter but struck out this year due to lack of creativity. But I was taken in for a few seconds by the “Zappos Sues Disney” article. The meat: “Tony Hsieh, CEO of Zappos, says it’s just one battle in his efforts to prevent companies from making misleading claims. The lawsuit alleges that Disneyland’s tagline of being “The Happiest Place on Earth” is “clearly false, deceptive, and confusing to the marketplace”,and cites internal Net Promoter Score (NPS) metrics that suggest that the designation should be given to Zappos.com, Inc“. ‘Nuff respec for this prank, Hsieh, but we’ll beat you next April 1!