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Net Promoter News: 66% consumers switch through poor service, Telstra go NPS, CEOs chat Net Promoter, measuring "Greatness".

Is it time for your company to adopt NPS?


Here’s a statistic that may give you heart palpitations: Research released last month by Accenture that canvassed consumers in 27 countries and 20 different industries found that 66 percent of consumers switched companies during 2011 as a result of poor customer service.

The Smart Planet article goes on to discuss the rising role of chief customer officers, and no doubt, this is an important part of improving your customer service offering.

But of more interest to us were the thoughts of Anne Bowman, chief customer officer of customer service technology and communications company Voxeo. One of her key observations is that in general companies have “notoriously low Net Promoter scores,” with the average score only +10. Smart Planet

tesltra-300x77.jpgTelstra dials Net Promoter

Ask any Australian what they think about Telstra´s customer “service”, and they will give you a list of grievances as long as your arm. And indeed, the last time the telco’s Net Promoter score was measured in 2006, it was a woeful -44.

It may or may not be coincidental that until recently Telstra was very dismissive of Net Promoter, with a spokesperson in 2010 saying "My understanding is that Net Promoter scores are a commercial measurement, and not focused on customer service." Err, righto.

But times change, and with a new CEO (David Thodey) on board, there has been a renewed focus on the customer. Recent research found customer satisfaction among Telstra mobile customers was stable across 2011, with 65 percent of customers “very satisfied” – still trailing the industry average, but a significant improvement over 2006.

And this week, it was heartening to see Telstra announce it plans to adopt the Net Promoter Score as a gauge of customer satisfaction.

Noted Thodey; "This is a big change for this company – it really means every metric, every part of the company has got to change the way they measure. We want to get to a point where customers are not just satisfied, we want them to become promoters or they recommend Telstra to other people."

People recommending Telstra for superior customer service – what will they think of next? ITNews CIO

CEOs Talk Earnings, Net Promoter Scores

It’s reporting season, and one thing we have been interested to see is the number of CEOs discussing Net Promoter Scores at their earnings calls.

As we would expect, most CEOs who mentioned Net Promoter (Philips Electronics, Nokia, Genpact, Shutterfly among them) simply talked about their scores in general terms. Virgin Media CEO Neil A. Berkett, went a step further, and talked up the appeal of TiVo via its NPS. “If you're a TiVo customer, you're an advocate. TiVo customers have a higher net promoter score than non-TiVo customers, are 20% more likely to be advocates than not,” he said.

But an even more interesting comment came from Sprint Nextel CEO Daniel R. Hesse, who claimed that the company was the only one of the four major US carriers to show improvement sequentially. “And our improvement has been so significant, we have moved up two spots in the major carrier rankings in the past 2 years,” he added.

Why is this noteworthy? Naturally, we like that the CEOs of some of the world’s biggest companies are putting a focus on NPS to help improve life for their customers (and shareholders). But what we particularly like about Sprint Nextel is that rather than simply quoting a figure, by observing it against previous and competitor scores, Daniel Hesse was able to effectively illustrate the company’s momentum in terms of customer service. (Acknowledgments to SeekingAlpha)

Telstra, are you taking note?

Satmetrix unveils social media measurement tool

Long time Net Promoter slide-deckerists Satmetrix have released a new social media measurement tool they call SparkScore. The tool will analyse comments across social networks, reviews, and other platforms before calculating a score for each brand using an NPS-compatible 11-point scale.

There has been some interesting discussion on the new tool by the pundits at Mashable, Econsultancy, and elsewhere. As for us, call us old-fashioned, but we believe most B2B customers don’t really use Twitter or Facebook to badmouth corporate suppliers. Let’s see how this plays out... Mashable, Destination CRM, Econsultancy Press release

[caption id="attachment_2457" align="alignnone" width="300" caption="Employee Net Promoter: e-NPS"]e-nps-300x163.png[/caption]

Employees – The Forgotten Linchpin of Customer Satisfaction

It probably comes as no surprise to learn that employees want to be valued – but in spite of aiming to provide excellent customer service, too often companies that might otherwise reach greatness lose focus on their employees.

In a keynote speech at the Net Promoter 2.0 Conference last week, Fred Reichheld argued that specifically employees want to be “a valued member that is part of a winning team with an inspiring mission.” In other words, to nurture a culture of volunteers, where every employee is a champion of your brand.

Said Reichheld: “I think the question is how can I help my front line team leaders build better relationships among their team, not just so they can serve customers, but also enrich their lives.Destination CRM

[caption id="attachment_2455" align="alignnone" width="150" caption="Rob Markey"]rob.gif[/caption]

Rob Markey on Loyalty and Growth

Most businesses aspire to growth, but according to research by Bain & Company, less than 10% achieve profitable, sustainable growth over 10 years. And Net Promoter guru Rob Markey, who spoke on the topic at the Net Promoter conference, noted that these companies tend to be loyalty leaders. The problem with the rest, he said, is that while 80% of execs think they deliver a superior experience, less than 10% of their customers agree.

Rob went on to outline key ways to help leaders understand NPS and discuss different lenses for viewing the metric, but what really sticks out for us is the substantial gap between execs who believe they offer a superior experience, compared to what their customers really think. It seems Anne Bowman was really onto something above when she observed that “in general companies have notoriously low Net Promoter Scores…” Net Promoter

[caption id="attachment_2456" align="alignnone" width="300" caption="Napier: “...we were thinking about how to measure greatness.”"]Screen-Shot-2012-02-10-at-11.50.10-AM-300x138.png[/caption]

Net Promoter – a measure of happiness, or greatness?

Net Promoter is generally known as a measure of customer loyalty, and a couple of weeks ago we noted that during the process of conceptualizing the metric, Fred Reichheld was tempted to call it a “Net Happiness Score.” In this video, Fred talks with five CEOs who believe Net Promoter does more than provide a customer satisfaction metric – and according to one, “What attracted us to Net Promoter, is we were thinking about how to measure greatness.Conversation with 5 CEOs

Net Promoter News

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Next Up: Net Promoter News: Subaru drives most recommendation at 57, KIA coming fast at 18, Detroit's finest get a flat; Entrasys services 81; V-Rooms nix score, award themselves A+

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