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Net Promoter News: Customer Delight is the New Bottom Line, plus YouTube, Bingo and Lawncare


"...for now, the net promoter score is the best measure available for determining client delight"
A couple of relevant articles caught our eyes this week.Steve Denning in the Forbes article "Measuring Business's New Bottom Line: Customer Delight" neatly summarises  the Net Promoter® Score methodology. "To measure customer delight at the organizational level, the best place to start is the work of Fred Reichheld. [...] Initially he had trouble getting firms to take loyalty seriously or to do anything about measuring or tracking it [...] So he set out to create an instrument so simple that people could easily understand how it tracked the quality of their client relationships". In a balanced way, Denning describes the growth of Net Promoter, and closes with “Reichheld himself is careful not to overstate the reliability or validity of the method. It’s not intended as a tool for academic study, he notes, and it doesn’t work in some settings [...] Nevertheless, it is practical and intuitive, and, most important, it drives rapid learning and action across the organization [...] for now, the net promoter score is the best measure available for determining client delight."On the VentureBeat Entrpreneur column, Clate Mask (of Conquer the Chaos fame) counts up 3 ways to avoid costly customers. News-At-Ten-headlines:  1. Get totally clear on who the target customer is, 2. Put metrics in place to measure the cost of a customer. 3. Re-negotiate with or terminate costly customers. Back up to bullet 2) and he suggests: "A few key metrics can help you steer clear of this trap. These will vary, depending on the type of business you run, but a few common examples are cost of goods sold, lifetime customer value and net promoter score."

Company/Segment News

Social Media: Netpop Research publish Net Promoter Scores for social network sites in US, and find that YouTube users are more likely to recommend than FaceBook and Twitter. Scores include YouTube 50, Facebook 36, Groupon 33, LinkedIn 30, Craigslist 29 with Twitter at 11. Source: MarketingProfs Finance:Canada's BMO Financial Group shout out their NPS and Profit  in their Q1 results: "We continue to focus on the customer experience, as reflected in our high loyalty scores. Our retail net promoter score was 41 for the first quarter of 2011 and 40 in the prior quarter, and remains very strong compared to the scores of our major competitors.". Profits up too: Net Income Increased 18% to $776 Million. SourceMilitary's own USAA topped NPS tables for third year, coming  first in consumer banking, personal auto insurance and homeowners/renters insurance categories in Satmetrix 2011 Net Promoter Benchmark Study. Texas based USAA led in all three industry sectors by squarebashing Net Promoter Scores of 87 in consumer banking; 78  in homeowners/renters insurance; and 73  in auto insurance.From San Antonio Business Journal. [Net Promoter insiders should check out the USAA testimonial page, which is beautifully executed and kept up to date with new tributes daily.]Card-Not-Present e-commerce processers Litle and Co win 2011 Stevie Award for Litle Vault. PR reads "The company's customer-obsessed culture is committed to Voice of the Customer initiatives, including Net Promoter Score (NPS)" More (Update 10/2013 - Link removed from source).Staffing Specialists: In a slew of self-puffers covering Net Promoter scoring in Inavero's 2011 Best of Staffing/CareerBuilder one stood out with a number. Hudson, who "secured their place on the winner list by obtaining at least a 55% Net Promoter Score for extraordinarily high levels of client satisfaction. This score is nearly double the national staffing industry's Net Promoter Score benchmark..." Source.Gaming: British bingo-to-roulette gamblingistas Rank Group touted financials for 2010 showing increase in revenues to £567.8m, and mentioned NPS in refreshinghly honest way. “Revenue accelerated strongly and operating margin expanded [...] Net promoter score declined significantly, principally as a result of customer dissatisfaction with our online casino and sportsbetting sites.” Not clear if they are fixing the NPS score, or if mug punters do not recommend losing money to friends or family. iGamingInternational: Genroe and Directness announce partnership to bring continuous Net Promoter Score measuring system CustomerGauge to Australia, calling out early success with insurer iSelect. MoreSmall Business: We like to see heartwarming stories from smaller companies having success with Net Promoter. This from Lawn and Landscape News , and covers Brad Johnson, owner of LawnAmerica in Tulsa, Okla., talking about on how companies can measure their customer satisfaction. “True growth in any industry is hard to find,” Johnson said. “We’re geared for not just pleasing customers, but exceeding their expectations. They’ll talk about us if we’re really, really bad or really, really good. … That determines your future growth: how happy your customers are. I’m a numbers guy. I like to see data. The Net Promoter Score is a number I can look at, and I can be confident of how we’re doing on customer service.”From a Net Promoter perspective Johnson does the right thing: incentivizing his entire company on the NPS results; depending on their position, managers can receive as much as $3,500 more at the end of the year if they exceed their goals. Technicians and office staff earn bonuses based on the performance of the company as a whole. “We post all of our data. There’s some peer pressure, because it’s very visible,” he said, and added "It seems to be working: In 2010, retention went up, turnover went down and employees’ attitudes were better".

Next Up: Net Promoter News: Marketers, Metro Bank 'get it' but Barclays don't, plus Smartphones, Ireland and Clockwork Home

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