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Net Promoter News: Giffgaff Customers Giff and Take, Foxtel in the Net Promoter Henhouse, Temkin Group Benchmarks US Businesses

Giffgaff: The Mobile Provider Where Customers Giff a Little, Take a Little

Giffgaff is a Scottish term that means ‘mutual giving,’ and that is exactly how the business model of this sim card-only mobile virtual network operator works. Rather than employing a large staff or spending money on advertising or customer acquisition, customers are rewarded for taking care of key parts of the business including marketing, customer care, and sales.

An example of how this works can be found in its community. Instead of customer service employees, users are incentivised to answer questions from other users, after which they gain ‘kudos’ and payment points, which can be converted to cash.

By using online channels and encouraging its community members to spread the word amongst friends and families, Giffgaff keeps keeps operational costs low and advocacy high. The organisation claims an NPS of +75, and its slogan, “the mobile network run by you,” is more substance than spin for a group of customers who are actively engaged with the brand. We strongly recommend checking out a couple of the links above, if for nothing else than interesting insights on how to build a thriving brand community.

Foxtel in the Net Promoter Henhouse

Back in the days when eyeballs equalled advertising revenue, ratings were the performance indicator by which television execs, TV programs, and showbiz egos lived and died.

[caption id="attachment_8369" align="aligncenter" width="573"]FoxtelGo_main Foxtel: Putting a KPI on advocacy, not ratings.[/caption]

But with the rise of pay television, ratings as a KPI have less of an impact, and some forward-thinking organisations are searching for more effective ways to benchmark their performance. According to the chief of Foxtel, an Australian pay TV organisation, “We certainly don’t live or die on the overnight ratings, we don’t live or die on the cumulative ratings either. It is indicative of where things are going but for us it is much more about getting people to be willing to say Foxtel is great.” (emphasis added).

Foxtel is increasingly focused on customer advocacy and Net Promoter as KPIs, claiming that the NPS from customers who use the Foxtel Go app “are way through the roof”. B&T

Temkin Group Benchmarks US Businesses

[caption id="attachment_8382" align="alignnone" width="417"]Temkin Group 2013 NPS Benchmarks Temkin Group 2013 NPS Benchmarks[/caption]

Hot on the heels of Bain & Company releasing Net Promoter research on the global banking industry, market research and consulting firm Temkin Group has released Net Promoter Scores for 269 companies in the US across 19 industries. Of note:

  • Perennial over-achiever USAA earned one of the highest scores – +65 – for its banking business. This correlates with Bain & Company's research that indicated USAA has the highest NPS for banking across all US regions.
  • Among all businesses, another bank, HSBC, earned the lowest score at -42. Other companies with NPS of -10 or below are Time Warner Cable, Citibank, Super 8, Charter Communications, and Motel 6.
  • Besides HSBC, Motel 6 (hotels), US Airways (airlines), and 7-Eleven (retail) are 30 or more points below industry averages.
  • Companies with an NPS above 50 are, H.E.B., Chick-fil-A, Apple, Audi, and Nordstrom.

For more info on the research, see the Temkin Group press release, or visit the Customer Experience Matters blog to purchase the study (and find other resources).

Fitness Australia Makes Culture Cool

Since 2009, non-profit Fitness Australia has grown from 20,000 customers to 30,000, and seen a 45 percent increase in revenue. In the past year, its Net Promoter Score has gone from -20 up to +69.

A driver of these impressive stats is an initiative to identify and perpetuate the right culture in the organisation through being hyper-aware of what it is looking for in candidates to join the team. To that end, the Fitness Australia developed the cheesy – but apparently effective – moniker of "Team Cool" to define this culture, and introduced a hiring process that includes an interview over coffee and questions such as “Which historical figure would you most like to dress up as?” The organisation finally makes the hire based not on technical skills, but on cultural fit. Associations Now

In brief

Low cost Australian mobile service provider Amaysim has claimed an NPS of +58. In related news, the 3-year-old business now has half a million subscribers and is potentially expanding internationally. Business Spectator

ValueVision Media has claimed a “double-digit” increase in its NPS at its Q3 earnings call. Seeking Alpha

Europcar South Africa has announced it is introducing Net Promoter surveys, a year after Europcar International adopted the system. Europcar

Next Up: Webinar: Give your Account Management an Unfair Advantage (Wednesday, December 4)

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