Net Promoter News: Advanced Technology Services tightens screws, Darwinian Survival of the Fittest CE Brands in India, Weebly high NPS, MycroBurst in 70s, UK PM in NHS NPS push
Here we go gathering NPS in May – eyes down for the first Net Promoter Newsletter of the month… Brought to you weekly by CustomerGauge. Browse Net Promoter News, search by company tag or check out the back issues. To get a copy in your inbox sign up here.
Advanced Technology Services advances B2B Customer Satisfaction
High-end spanner twisters Advanced Technology Services (ATS) is the US-based provider of maintenance services to large manufacturing companies. Originally part of Caterpillar Inc, ATS became an independent privately-owned firm in 1996, and its revenues have been growing by an impressive 18 percent annually. According to CEO Jeff Owens, growth is due to relationship-building with its customers – small, but incrementally built up over time. ATS works to consistently delight their customers until the relationship eventually develops into something broad and long-term. The company uses Net Promoter to keep its finger on the pulse of these relationships, but has a strategic approach that seeks to improve on these scores year-on-year rather than a shorter timeframe.
Also of interest to customer loyalty junkies, Owens noted that “Before NPS, we did surveys on a scale of 1 – 10, and our guys really enjoyed getting 9’s and 10’s. The reason we moved from that is that we were trying to raise the bar, and say, “It’s not just that everyone is satisfied. It’s whether our customers would, unsolicited, recommend us to a friend or colleague.” That “unsolicited” part is really important.” Forbes
Sony, LG, and Panasonic most responsive to change in Indian business jungle
New research from Market Xcel that used Net Promoter to uncover purchase intent among Indian consumers has revealed that Sony, LG and Panasonic lead the pack as the most advocated brands in the consumer durables category.
The article goes into some detail about which brands are winning across different product types, but what caught our eye was an easily-forgotten pearl of wisdom offered by Charles Darwin that remains very relevant in today’s business jungle. According to quote in the article, “Darwin theorised that it is neither the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.”
It’s a great quote, and we’d add that proactively seeking feedback from your customers is the first step toward a building a change-responsive business – not just in terms of new products or offerings, but also in terms of building strong relationships and continuing to maintain your relevance.
For NPS fans, there is an excellent table of results featuring the brands and categories. PitchOnNet
PEER 1 Hosting aims for peerless satisfaction, not quite there yet
Online IT hosting provider PEER 1 Hosting this week announced the appointment of Gaye Andrews as its Head of Customer Service in Europe, Middle East and Africa (EMEA). The reason for the appointment appears to be closely tied to Andrews’ experience in rolling out an extensive Net Promoter program at RBS.
Regarding the appointment, UK MD Dominic Monkhouse, noted that “Passion and customer service are at the heart of what we do. Gaye’s experience of using NPS will be significant in driving forward our customer service and loyalty programs across EMEA, and ensuring we continually improve as a business.”
All sounds pretty straightforward, until you visit the PEER 1 website, where the company claims it has improved its Net Promoter Score “by 76% last year alone” – a somewhat confusing as it does not outline a benchmark, initiatives that may have contributed to the improvement, or who conducted the research. However, we do know that in 2010, the company claimed an NPS of +36. There is probably a mathematical formula in there somewhere to figure out, but we’ll let that go for now. The Hosting News
Profits, Net Promoter Scores are ‘Weebly’ high
To add to the list of companies that enjoy strong revenue growth that correlates with (in this case exceptionally) strong Net Promoter Scores, this week we have Weebly, an under-the-radar success story that has enabled its users create more than 11 million websites.
The six-year-old company has quietly grown into a profitable giant exclusively through word-of-mouth, fuelled by enthusiastic advocates that have propelled its Net Promoter Scores to +80. And for its next trick, it may just go public. Look out world! All Things Digital
MycroBurst pleases most of the people, most of the time
MycroBurst is a crowdsourcing site for companies and individuals who want custom logos and designs. It has a community of over 35,000 designers, who compete to offer clients designs for projects ranging from website logos to postcards. According to co-founder Joe Witte, the company’s NPS is above +70. And in related information, the company doubled its revenue in the last year. Reuters
And finally, Cameron gets NPS idea for NHS
It seems that David Cameron gets the “Net Promoter” bug, applying it to Britain’s National Health Service. Money quote: “Visiting NHS hospitals today, Mr Cameron will announce the “friends and family” assessment. “It’s very simple. It just asks whether patients, carers and staff would recommend their hospital to their families and friends in their hour of need,” Mr Cameron will say”. Daily Telegraph
Net Promoter News: Centrica +3, 10Ks from eBay, Nokia, HomeDepot – plus FaceBook stuff, Sony NPS-Man, Kamp skore
Net Promoter News 3 June 2010
Centrica supply Net Promoter Dashboard
Centrica (the Company Formerly Known as British Gas) come with plenty of customer experience baggage. To their great credit, they are reporting their Net Promoter progress by publishing on their site a chart and downloadable numbers. They also list goals: “British Gas’ NPS at the end of 2009 was -2, placing us equal first in the league table of major UK energy providers with three other suppliers. Our target for 2010 will be to increase this score to +3.” An example of transparency that we look forward to seeing more of. Source
Zuckerberg: Privacy down, NPS up!
Facebook’s privacy controls have been heavily criticized recently, but CEO Mark Zuckerberg is confident users care less about sharing data, more about possible subscription fees. And he knows this because he tracks what he calls “a special metric”, which most others call Net Promoter Score. “We’ve seen no meaningful change on the stats on any of that stuff,” which is how he refers to people quitting the ‘Book.
“Whenever we make a change, the net promoter score always goes down. But it will usually recover to a higher place than it was at before,” he continued. “So when we started rolling out these changes after f8, our net promoter score went down. And we thought it was because of the privacy issues. But what we found was that it actually went down because we made changes to our news feed…” Interesting reveal there – we would dearly like to see some more stats on how they are surveying people. And whether they gave permission. Maybe its not just hubris though, as yesterdays “Quit Facebook Day” apparently was a flop, and did not result in a significant amount of “that stuff”. VentureBeat and Forbes
At a recent conference, Sony Canada opened up about their Net Promoter journey. Excellent tips from Wayne Ground, CIO of the Canadian division, explaining how it was not initially driven by executives, but after getting daily reports, the president was quickly on board. Customers are invited to complete online surveys on call center interactions, website visits and retail store visits. They have sent more than 100,000 surveys with a response rate of 23%.
All detractors gets a follow-up contact from customer support. Promoters also receive a follow-up — a coupon for future Sony Canada purchases. The promoters who receive coupons tend to use them, and sales transactions with those customers are 40% higher than the average purchase.
Additionally, the company started to capture email addresses at the in-store locations. Once in-store managers and sales reps realized they were being evaluated, they caught on to the program pretty quickly, Ground said. The follow-up contacts have really made a difference: “When we phone back the day after they send in a survey, customers are blown away,” Ground said. “They can’t believe someone actually read it.” Source: – SearchCRM.com
Sage grows Net Promoter
Sue Swenson – CEO of Sage North America opened Sage Insights ’10, and revealed how it is “Maximizing existing assets“. Sage has climbed 10 points in its Net Promoter score, which quantifies customers’ “willingness to recommend to others.” It’s also boosted renewal rates from 90 percent up to 97 percent. Customer value comes from not just product functionality, EVP marketer Palsule said, it comes from how easy Sage is to do business with. Source DestinationCRM
Phones 4U Pay on NPS. Probably.
Mobile News reports on the fiendishly complex compensation scheme from High Street SIMmery Phones 4U. The scheme has so many “ifs” and “buts” it takes four paragraphs to summarise. NPS excerpt: “Phones 4U sales consultants will now have their full commission entitlement paid out if the store hits a Net Promoter Score of 37.5. Previously, stores had to achieve a score of 35 for consultants to receive full commission.” Mobile News
Temkin on Take-Up.
Bruce Temkin of Temkin Group blogs about how executives are using NPS: 400 people took their recent survey. Key numbers: 43% are using Net Promoter Score (NPS), and 65% of those people think that it has had a positive impact on their company. Temkin
Wall Street News – Our regular review of the 10-Ks
eBay Inc. (EBAY) – Q1 2010 Earnings Call
Chief Online Gavel Swinger John J. Donahoe called out how eBay is “…becoming a more customer focused company. We are driving improvements to our user experience and we are measuring our success with three customer oriented metrics; net promoter score, velocity and market share. I have tied a portion of our leadership compensation to customer satisfaction.” SeekingAlpha
But the public knew this already, as eBay’s top goals for 2010 were revealed in a tweet by their corporate blogger, Richard Brewer Hay. Having seen a poster in a stair well in San Jose he posted an image of it on yfrog. The goals include 1) Increase eBay’s Net Promoter score by 10 percentage points. Source Tamebay
Nokia Corporation (NOK) – Q1 2010 Earnings Call
Nokia CEO Olli-Pekka Kallasvuo talked NPS on the call, referring to C3 with Ovi Mail: “Since January there have been 10 million downloads [...] Consumer engagement is very high. In addition, feedback on the user experience has been very good with a double-digit positive net promoter score since we launched.” SeekingAlpha
In contrast Parks Associates research of the basic phone market called out some bad news for Nokia. Their Consumer Decision Process research of CE product buyers showed Nokia, once the unequaled leader of the U.S. mobile phone market, last year fell to the bottom of the list of brands of basic mobile phones that people would recommend, as measured by Net Promoter Score (NPS).
Basic Cell Phones by Brand, Q3 2009:
- Samsung 32%
- Motorola 26%
- Basic Cell Phones 21%
- LG 18%
- Nokia 7%
The Home Depot, Inc. (HD) Q1-2010 Earnings Call
Frank Blake, boss of DIY shedder Home Depot explained on Q1-2010 call called out customer service as key to success: “Last year, […] we re-trained every associate in the company on our customer service expectations. […] We’ve seen consistent improvement in our net promoter score […] in the first quarter, 600 basis points over last year, even as our transactions increased 4.2%.”
Analyst William Truelove from UBS is one of the few bankers we have seen ask about customer service (so for that he gets our “Analyst of the Week” prize) and quizzed EVP Ellison further “…Did you have any kind of service metrics from the customers?”. Marvin Ellison shoots back “Frank talked about the net promoter score […] We get roughly 100,000 customer surveys per week that we look at […] trying to make sure that we have incremental improvement week over week, month over month.” SeekingAlpha
From another source we learn that Home Depot net promoter score (a score measuring customer loyalty) is almost 70%, an improvement of 800bps in the past year, (Shareholder Meeting 20 May 2010)
Hertz Global Holdings, Inc. (HTZ) – Q1 2010 Earnings Call
Mark Frissora, Hertz CEO called an increase of nearly 8 points in NPS “Our net promoter score rose 790 basis points in the US or 18%, reflecting the appeal of a newer fleet and the addition of popular new car classes.” We estimated Hertz NPS at around mid 50s last year (http://customergauge.com/2009/02/net-promoter-news-hertz-drives-26-in-europe/) so that may put them in the 60s – firmly in the Cadillac class. SeekingAlpha
BMW forecourter up 66%
UK BMW seller Vines reports a 66% year-on-year increase in its Net Promoter Score results, as computed by Mondial. Vines BMW (or Mondial) say they have gained insight into its customer satisfaction levels, and using this to predict future business growth. Note of caution: the math is provided by a PR company, and based on that, it’s unclear if that’s and impressive 66 NPS points up (impressive only because it must have been a low base) or a 66% increase, i.e. 10 to 16, (equally non-impressive). Still, they pepper the text with superlatives, “massive” and “huge” so that must be good then. Source
The fantastically named RV Daily Report tells us that Kampgrounds of America has added yet another guest feedback service for its franchise owners to help them improve service and drive camper nights through increased referrals, based on Net Promoter Score. KOA’s new on-line camper feedback survey offer KOA owners near-instant feedback from their guests following their stays – so far 9,200 surveys have been completed by the campers. RV Daily Report
Sony Backstage 101 program reports Net Promoter of 44.
Sony’s learning centre for Digital photography users, Backstage 101, was recently cited in a case study. The community driven site showed increasing consumer loyalty and advocacy, with 78% of users report that they are more likely to purchase a Sony product as a result of Backstage 101. “Sony’s NPS (Net Promoter Score) for 2008 came in at 44%, with 59% of users classified as “promoters” who are likely to recommend Sony electronics to a family member, friend, or coworker” according to the case study, courtesy Marketing Profs.
“Slumdog” Atlassian Software reports NPS 52
Atlassian, self-styled “Enterprise 2.0 sector’s Slumdog Millionaire” note on their blog their NPS score of 52, and outline methodology of sampling. “500 customers, chosen at random, and our Net Promoter score was: 52%“.
I pulled out this section as I thought it was useful: “We made it clear we only required answering one question to participate in the survey. The other three questions were entirely optional:
* “If you wish to elaborate on your response, do so here…”
* “Is it OK for us to contact you?”
* “If so, what’s your contact information?”
According to Atlassian, the survey had a 40% response rate, and 20% of the customers said it was OK to contact them. “First priority is personally calling every single detractor [...] Passing support problems to support and product problems to development loses this vital analysis. Second we are thanking everyone who participated and is willing to contacted.”. It’s all here.
Enderle on Obama NPS
Rob Enderle, IT industry pundit and expert writes in Tech News World that Barack Obama could learn from Intel among others, and invest in the future to survive. He suggests loyalty is key, and that Obama should measure that with Net Promoter Score. Article: TechNewsWorld.
CustomerGauge: “Net Promoter in Blood”
Bain-ster Rob Markey lists three customer feedback systems and cites one, CustomerGauge as “really interesting, and is based on Net Promoter. The company seems to really have Net Promoter in its blood, and several Bain clients have said they are good” – full details on his blog here.