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Net Promoter News: Fools rush in on Citi NPS gold, NetFlix streams "House of NPS", Lack of M-commerce Promoters for Major retailers

Fools entertain Citibank “Buy” recommendation 

According to both the US court of public perception and sentiment among investors, big banks’ stock is down. Their sins are numerous. From their part in precipitating the financial crisis, to being “too big too fail” (read: arrogant and out of touch) and for hitting customers with nuisance fees, banks have few friends and even less advocates.citibank-logo.jpeg

Yet this week, Doug Levy, author and CEO of MEplusYOU, said that Citibank could be a solid investment option based partly on the fact the business is using Net Promoter to put a renewed focus on customers. But his analysis takes into account where the bank has come from.

“Some companies embody a Relationship Era approach to doing business intuitively, automatically. Some get there because they've experienced pain. Citibank's clearly in that latter category,” Levy told the Motley Fool.

What we like about this analysis by Levy is that it takes into account where Citibank is going in terms of growing customer loyalty, rather than where it has been over the last few years. And by way of supporting evidence, Citibank improved its customer experience rating by 15 percentage points between 2012 and 2013 in the Temkin Experience Ratings. This was the largest improvement by any company of the 246 surveyed.

With a consistent focus on the customer, it may yet be proven that buying shares in Citibank will come to be seen as a (Motley) “Foolish,” rather than (actually) foolish investment. The Motley Fool

NetFlix streams "House of NPS"

Internet television biz NetFlix has a stratospheric NPS in the +80s. its closest rival, Verizon FiOS has a score in the low twenties, and a number of other rivals lag further behind.

[caption id="attachment_5028" align="aligncenter" width="384"]Netflix-Net-Promoter.jpg Which would you prefer to invest in?[/caption]

Interestingly, this news also comes via of a financial analyst, who uses Netflix's NPS as supporting evidence in building a “Buy” case for the business. "Netflix's high customer satisfaction coupled with continuously improving content will continue producing many happy customers, myself included," said analyst Jayson Derrick. Seeking Alpha

Are retail customers 'webrooming' as well as 'showrooming'?

According to new research, Target, Best Buy and Walmart deliver a (surprisingly?) good mobile experience for shoppers, with between 69% and 83% rating the retailers’ mobile sites as either good or excellent.

Yet intriguingly, these experiences do not translate to high Net Promoter Scores for the retailers’ mobile sites. On this measure, Target was the lone ranger in positive territory at +11, with the other two in the negative doldrums.

These scores seem to suggest that building a satisfactory mobile experience is not enough to nurture loyal shoppers. This should be of great concern to big retailers. As m-commerce becomes ever more popular, the ease with which shoppers are able to 'webroom,' (named in honour of the practice of 'showrooming') or flip between mobile shopping sites to find the best deal will only increase, as will the pressure on their margins from ecommerce sites such as Amazon and eBay.

Pam Goodfellow, an analyst who presented the research, suggests that; "Delightful experiences, consistent messaging, and excellent service delivered through all channels are paramount when building this sought-after, loyal customer base.” Prosper Discovery

In brief

  • Credit union America First shows that financial services businesses can earn customer advocacy, reporting an NPS of +83. GoBankingRates
  • Financial tech biz Direct Capital has announced a self-reported NPS of +65. PR Web

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