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NPS® News: Uber's incident wakes up investors and one Australian bank's effort to be different from the rest


It’s time to wake up; even investors are paying attention to NPS

Due to the recent customer experience flop this week of Uber’s senior executive, Emil Michael, there has been a flurry of conversation about the brand and its identity post incident. While Uber’s Net Promotoer® score is likely to take a punch due to this, one of the more interesting aspects brought to the fore is what this all means for investors, companies and particularly startups.

In an article by Buzzfeed News covering a private technology conference thrown by Goldman Sachs on Wednesday night, investors expressed how the Net Promoter score is a representation of the “trust in the brand and customer delight,” as one investor put it.

More and more investors are not merely looking at business models or the viability of a product or service, but looking to understand how a brand is building trust with their customer base.

For customers trust is a matter of transparency and privacy. As many of these companies hold personal information that they can use to their own advantage, as we saw in the case of Uber this week. As another investor put it so aptly “If your users are unhappy about how privacy is being treated or anything else, they go away…. you break down on trust, and a lot of problems happen very quickly.”

What we have seen this week is a clear wake up call. A call that says not only will poor customer experience damage your client base, but will hurt your chances of receiving investments.

There is a change coming to Australia’s banking sector

The National Australia Bank (NAB) has been watching the world of telecommunications in Australia, and noticed that the way the wind is blowing is shifting.

Telstra, Australia’s largest Telco, a number of years ago introduced NPS and have delved right into making it a part of their company culture. So much so, that when Telstra missed its target score this year, both frontline staff and executives missed out on customer experience related bonuses.

NAB’s head of personal banking, Gavin Slater, was watching all of this and realized just how much NAB was failing its customers. The point really hit home when Mr. Slater called up his own bank to make a minute change to his mortgage and was quickly embroiled in paperwork. And this was the turning point.

Although the personal banking arm of NAB had experienced 19 quarters of growth, for Mr Slater this didn’t matter. As a result NAB took the step of implementing the Net Promoter score, and followed suit in slashing bonuses by $7 million Australian dollars due to poor customer experience issues.

Mr Slater said, “Customers get frustrated when we don’t do what we said we’d do… the underlying frustration is when they talk to someone and that employee doesn’t solve the issues.” To this end then, NAB is hiring 100 additional bankers for its phone centers and for those busy householders 25 extra bankers to conduct home calls.

NAB due to their years of sustained growth and continued future potential growth, is aware of how they grow and are mindful that too rapid a growth can ultimately be risky and detrimental to their customer experiencesma.

Click here to read the full article.

NPS in brief

Online UK tyre retailer, Blackcircles.com, has received an NPS score of 84.

While, the Australian telecom provider Optus has experienced a 2.3% lift in profit in the last six months, with its NPS score rising by 6 in this period.

ING Direct Australia has been found to have a net promoter score of 38.

And cloud services provider, Bulletproof, has received a score of 52.12 based on a survey conducted recently.

Photo credit: Uber

Next Up: Divide and conquer: How loyalty based customer segmentation is revolutionizing customer experience

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