Best Buy biffs Showrooming with price, customer service 1-2
Unlike some retailers, Best Buy does not suffer from a lack of store traffic. However, it does suffer a significant loss in potential sales through visitors that come to its stores but do not make any purchases.
The term for this practice is “Showrooming,” and it’s so synonymous with Best Buy that the Urban Dictionary succinctly defines it as “The act of going to retail stores like Best Buy and Walmart to check out certain products and then once satisfied with the look and feel, purchasing the item online on Amazon or other retailers.” Ouch!
Best Buy is packing a one-two punch combination in an effort to combat the challenge of showrooming and turn electronics’ sales around. The first punch is a price-matching policy, where the company pledges to match the price from its online competitors. And in an effort to make customer service a point of differentiation, the second punch is to use Net Promoter to survey not only customers that make purchases, but also Showroomers.
Net Promoter is usually used to survey actual paying customers rather than potential customers, so this is a particularly interesting use of the metric - time will tell if it helps Best Buy become the best place to buy. Forbes Seeking Alpha
E.ON energises customer service
In the UK, energy utility E.ON aims to install a million smart meters by Q3 2014. Smart meters are more efficient for customers, and therefore there has been a tendency by energy companies to neglect customer service as they assume that customers will recognise the benefits for themselves.
But with a billion pound investment and a head office asking why this money could not be better spent in high growth markets such as Brazil, E.ON is leaving nothing to chance - investing in customer service contact centres and working with charities such as Age UK to help elderly customer navigate the new system. These investments - which are relatively low cost in percentage terms, have driven Net Promoter Scores higher for this than any other part of the business’s portfolio. Intelligent Utility
Net Promoter "lifeblood" of GiveForward
GiveForward is a website that helps people raise money online for social good (Hint: Google GiveForward in the news to get a sense of the range of initiatives people have used it to raise money for). In a Technori blog post, the organisation outlines some key reasons Net Promoter works for it. The entire list is worth a read, but the most interesting was point two, "NPS encourages a company culture of focusing on less while executing more." The point says that for GiveForward, Net Promoter:
- Gives staff a tangible stake in the direction of the organisation, but also makes them accountable.
- Encourages staff to focus on real growth levers and strike others off the ‘to do’ list (especially important at a startup where there is often a surplus of ideas).
The organisation has embraced Net Promoter to such an extent it refers to the program as the “lifeblood of GiveForward." Technori
- Lloyds Banking Group has announced improved NPS at its earnings call. “We surveyed through an independent company around 35,000 customers every month who have recently transacted with us,” said Mark Fisher, Director of Group Operations. Seeking Alpha
- Canadian export credit agency EDC announced a self-reported NPS of +72 for 2012, up from 71.2 in 2011. Digital Journal