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Net Promoter News: Amdocs diagnoses direct link between telco NPS and revenue, The nuts and bolts of Net Promoter System infrastructure

Are global telcos beginning a customer-centric revolution?

[caption id="attachment_5896" align="alignright" width="300"]Slide1 Some telcos from various markets that are on the record talking about their use of Net Promoter.[/caption]

While buying a new smartphone may be fun, paying your telco for network access normally isn’t. And it seems most people around the world feel the same way – according to new research by Amdocs, telcos have a global average NPS of -3.

But for those providers focused on the customer, there is plenty of opportunity to gain value from increasing loyalty and retention. According to the research, 88 percent of smartphone users across North and Latin America, Europe, and Asia-Pacific said they would significantly increase spending with their service provider if they received better service, and 84 percent said they would recommend good service to family and friends. And a related study by Ericsson (using the Net Promoter methodology), on global smartphone users shows that network performance is one key to ensuring subscriber loyalty and low churn.

Finally, in spite of the low global performance average, according to the chief of Australian telco Optus, in the past five years the average NPS for UK telcos has risen from -18 to +20, and in the US from -19 to +24.

There was one other noteworthy finding from the AmDocs research – a “direct link” between NPS and service provider revenue. So if you are a telecom customer receiving a fantastic experience from your provider, it may just be worth investing in company shares as well as your next plan.

The nuts and bolts of a Net Promoter System

Whether you are new to the Net Promoter concept, or have been working with the system for some time, a highly recommended article by Fred Reichheld and Rob Markey (creators of the system) outlines in lucid detail how to embed the infrastructure of the system within the organisation. As a teaser, it starts off with this great quote:

A consultant friend of ours noticed that his wife was looking annoyed, so he asked her what was wrong. She glared at him. “You’re always on the road,” she said. “You come home tired and jet-lagged. You leave your clothes on the floor and the dishes in the sink. You never walk the dog. And you’re always looking at that stupid little phone. Frankly, I’ve had it up to here.”

The consultant smiled benignly at her. “Thank you for your feedback,” he replied. “I value your opinion very much.” Bain

It takes two to tango: Integrating your CRM and Net Promoter platforms (Webinar, Wednesday, June 19)

Quick shout out to any inside sales, CX or marketing professionals interested in integrating their existing CRM system with a dedicated Net Promoter platform. Our upcoming Webinar: Integrating your CRM and Net Promoter platforms, will discuss in detail the advantages of integrating these two platforms, what to look out for, and provide some real-world examples.

Details and registration

In brief

  • Web hosters InterWorx announced an NPS of +72 for December 2012, from a self-conducted survey. Press release
  • Managed services and cloud communications provider Masergy announced that it has achieved a “best-in-class” NPS of +59.3. The customer satisfaction mark is a new company record. Press release
  • In the land of the long white cloud (aka New Zealand) more than 18,000 patients were surveyed to find the winner of “Community Pharmacy of the Year.” The average NPS was a very impressive +94, with the top two pharmacies scoring +99 and +98. NZ Doctor

Next Up: Fallstudie: W. & L. Jordan GmbH wertet Kundenservice auf mit Net Promoter Score

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