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Net Promoter News: Australia Post's customer service package, Digital Doctor's NHS diagnosis, Best Buy's NPS payoff, Flying Kangaroo's earnings leap

Australia Post puts customer experience package in the mail

[caption id="attachment_6462" align="alignright" width="300"]Australia Post: They don't yet know how, but they're going to become customer service Super Heroes Australia Post: They don't yet know how, but they're going to become customer service Super Heroes[/caption]

Australia Post used to hold a monopoly over postal deliveries in the Australian market. But recent decades have seen a decline in postal mail and the rise of competitors such as FedEx, DHL, and Toll. Faced with the influx of competition, the organisation aimed to put a renewed focus on the customer to retain relevance.

There was just one problem.

“To be brutally honest with you, we had absolutely no idea how to do that, because we've been a monopoly industry for 200 years, so it's not like our people really know how to use sales or marketing, or customer retention or anything like that," said CTO Tien-Ti Mak.

As a former IT consultant at the Customer Experience Company, Mak is perhaps better placed than most to help forge a path forward. In his new role, he aimed to spearhead an effort to put the government-owned organisation’s IT Department at the forefront of customer service within the organisation.

However, he ran into another problem.

"You need to have people who have this wonderful human understanding of customer behaviour, and what's important to customers and what drives customer behaviour, and yet they have to be able to talk bits and bytes and be able to translate that to the programming specifications and functional specs. It's almost next to impossible. They do not grow on trees, you cannot hire them,” he said.

The organisation has begun to combat this challenge with training programs in the IT department to help staff to understand customer satisfaction tools such as Net Promoter, and the customer experience generally.

“In the last six to 12 months, the IT team within Australian Post have made customer right at the core and right at the heart," Mak said. According to him, the rest of the organisation is observing the initiative with interest – and so are we! ZDNet

Digital Doctor diagnoses link between Friends and Family Test and NHS Staff Survey

National Health Service (NHS) Doctor and blogger Wai Keong Wong has run a linear regression analysis to investigate if there is a correlation between the much debated ‘Friends and Family test’ and the NHS Staff Survey.

Before he mentions the results, he notes that Staff Survey is calculated very differently from the Friends and Family test. In fact, the Staff Survey appears to be a traditional multi-page questionnaire, as opposed to the Net Promoter-based Friends and Family survey.

[caption id="attachment_6467" align="aligncenter" width="550"]Source: Wai2k - Digital Doctor Source: Wai2k - Digital Doctor[/caption]

Despite the different methodologies, the results reveal a small positive correlation, and the findings have sparked a wider discussion on the post regarding statistical significance and methodology. Digital Doctor

Is Best Buy’s Net Promoter buy-in paying off?

In the age of showrooming, Best Buy is one organisation that is haemorrhaging sales to online competitors more than most.

Yet despite the significant challenges it faces, just two years ago, 40 percent of the 600 million annual visits to Best Buy stores resulted in a sale.

Lifting this percentage by one point could generate the business an extra $200 million in operating income. Not something to be sniffed at, and statistically well within reach with the right effort.

The business has launched a thorough and sustained initiative to improve its customer service. Along with a robust Net Promoter program, it is taking a calculated risk to give friendly service without the hard sell approach formerly employed by sales staff. Though it’s early days yet, the approach appears to be paying off. Since November, Best Buy has substantially increased its overall NPS, and has reportedly generated positive and flat sales the last two quarters, following a sales free-fall last year. Forbes Star Tribune

Qantas NPS takeoff in leaps and bounds

According to recent Bain research, Qantas is a follower rather than a leader in terms of loyalty towards airline brands in Australia.

But the airline has just reported a record Net Promoter result for its loyalty programs, and its Frequent Flyer program is apparently adding a (very) impressive average of 2,000 new members a day. This has been accompanied by an underlying EBIT growth across the loyalty business of 13 per cent to $26m. The results and related product launches seem to have taken the market by surprise, with stock up 13% in one day. It appears that this Flying Kangaroo in one that really does have the potential to bounce back. CMO

In brief

  • US insurance business Mass Mutual has claimed its NPS is “17 points above the industry average,” and that it continues to trend upwards. Press release
  • Westpac-aligned Securitor has been named the Australian Financial Services Licensee with the highest NPS according to 1,141 surveyed financial advisers. IFA
  • Australian freight services biz Asixa has reported a Net Promoter Score of +44. Logistics Magazine

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