Net Promoter News: Rainbow Nation scores in World Cup extra time, Progressive Corp progressively retains,1-800-GotJunk delights at +85, Enterasys BYOD NPS +81
Rainbow Nation scores World Cup goals in extra time
As Europe tunes in to Euro 2012, South Africa is still feeling the positive after-effects of the 2010 World Cup (which it hosted, for those readers who live in non-soccer football-mad countries).
According to analyst Nikolaus Eberl, the South Africa cup was the best World Cup in history in terms of visitor feedback, with a Net Promoter Score of +92, compared to +88 for Germany in 2008. Furthermore, it was the most successful in terms of revenue, breaking through the $4 billion mark, and drove the country’s brand image up considerably to the point where it is now the most valuable national brand in Africa.
Eberl believes that South Africa 2010 has paved the way for another African country to host the World Cup sooner rather than later – possibly a West African country in either 2026 or 2030. Saturday Star
Progressive Corp reports correlation between retention and NPS
Insurance provider Progressive Corp adopted Net Promoter as far back as 2006, and at its recent shareholder call, the company continues to discuss how Net Promoter Scores are being analysed and acted on in its business.
Progressive is seeing a clear correlation between the duration that customers continue holding their policies for and the Net Promoter Scores they give the business. According to company representative Patrick Callahan, “While we monitor, measure and act on Net Promoter Score and make investments to move that, we’re investing to improve our policy life expectancy.”
The company also reported that customers who own more than one policy product not only give it a higher NPS, but also stay with the insurer longer – a considerably advantage in the insurance industry where customer retention is crucial. Seeking Alpha
1-800-GotJunk delivers bag of customer delight
Catchily-named junk removalist 1-800-GotJunk was growing fast – increasing revenues from $1M to $119 million in 7 years. But with the speed of growth, in the words of this post linked to below, “customers had become jobs.” As a result, complaints about the company were beginning to make their way online.
The company turned to Net Promoter to help it maintain the focus on the customer, and, recognizing that no one can grow a business the way promoters can, removed all bonuses based on revenue, instead giving bonuses based on Net Promoter Scores.
Between 2009 and 2011, the company’s NPS grew from +68 to +85, meaning a 3.5% growth in repeat customers and 1% growth in referrals, which ultimately translated into $1.5 million in incremental revenue – a tangible, bottom-line result from making people happy. Waypoint Group blog
LPL Investment Holdings entrenches market dominance
At more than double the size of its nearest competitor, LPL Investment Holdings is a dominant market leader within the independent broker dealer industry. At Morgan Stanley Financials Conference last week, CEO Mark Casady discussed the role of Net Promoter within the business, claiming that with a score of +54, the company has among the very highest scores in the industry, with the only two competitors in a similar range being considerably smaller than LPL.
However, this high satisfaction rate has not come without effort. Casady also mentioned that LPL Investment started working with Net Promoter in 2007, and at that time scored in the middle of the pack. So the results the company is seeing today are not from overnight success, but five years of sustained effort. Seeking Alpha
Enterasys on building a social enterprise
In the world of tech, Enterasys is something of an underground rock star. Though it’s not a household name it can boast three years of consecutive top-line year-over-year revenue growth and a Net Promoter Score of +81. The company helps organisations capitalise on the current wave of enthusiasm for “BYOD” – the willingness of employees to pay for their own iPads or Macbook Airs and “Bring their Own Device” to work.
According to an article in Forbes, Enterasys’ chief customer officer Vala Afshar believes this is because the company is a “social enterprise.” The post goes on to discuss in some depth what Afshar believes makes a social enterprise, why it’s important, and how to create and measure it. The last part is particularly important. As Benjamin Franklin once noted, “If passion drives you, let reason hold the reins.” Forbes
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Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.