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Net Promoter News: PayPal buddies up with Net Promoter, Cable Operators tune in to VoC, Fred Reichheld suggests tech companies get with the (Net Promoter) program


PayPal buddies up with Net Promoter

paypal“Last year when I began to lead the team at PayPal, it was clear to me that although we were a strong and thriving company with great promise, our laser-focus on scaling the business, and keeping it compliant in the complex world of payments had taken precedence over our customers’ experiences for too long…”

After recognising the problem, this post by PayPal prez David Marcus explains in considerable detail how the organisation is turning it around with a program called Customer First, including the following steps:

  • Director level staff and above spending time in call centres to hear and deal with issues first hand.
  • The institution of a “no fault construct” for small claims. When there is a buyer complaint, PayPal now absorbs the cost.

Marcus goes on to claim that "so far in 2013, we’ve tracked 40 million fewer issues that customers have experienced than last year," (not a typo - 40 million is the figure) and seen a corresponding rise in NPS.

The initiative has interested  investors, with the Motley Fool noting that the move will reduce costs spent on dealing with issues as well as increase customer loyalty toward the platform. Judging by some of the comments on the PayPal post, the organisation still has some way to go to completely turn things around, but we wish them all the luck as they continue on this difficult but rewarding journey!

Cable Operators tune in to Voice of Customer

In the world of cable operators, where service outages can quickly drive negative sentiment while uninterrupted service barely registers with customers, gaining a Net Promoter Score in the vicinity of glamorous brands such as Apple or Amazon may seem like a pipe dream. But it's not stopping some dedicated organisations from making serious efforts to nurture loyalty with robust Net Promoter programs.

MediaCom Communications is one such operator. The organisation recently noted that surveys have revealed that customers actually expect service problems from time to time, and while customers would love to see all service problems disappear, the organisation found that it could significantly reduce any negative impact with early warning and fast resolution. These insights are particularly valuable, because while gaining Apple-like scores may still be some distance away, according to a spokesperson there is a “real financial impact on the company if your NPS is going in the wrong direction.”

While Net Promoter is being embraced by MediaCom, fellow cable operator Comcast notes that basing a whole business plan only on one metric can be risky. “We have to look at internal and external benchmarks and NPS is one of those. If we can identify trends and drivers that will maximize a customer’s experience, we have done our jobs correctly. We want to look at these scores daily, weekly, monthly and yearly. We want to identify key short-term and long-term drivers and then adjust accordingly,” said a spokesperson. Viva la (customer loyalty) revolution! Multichannel News

Fred Reichheld suggests tech companies get with the (Net Promoter) program

Inventor of the Net Promoter System Fred Reichheld offered some interesting viewpoints on the technology industry on a recent trip to Australia.

“I think it’s the hardest position in most industries, and certainly in technology, for the incumbent to be truly customer-focused,” he said. “ Once a company develops a technological advantage, there’s a huge temptation to say our earnings were a little short this quarter so we’ll put in this little tricky fee. There’s no logic behind that of delighting customers, it’s just a desire to make Wall St happy. I would say, as a note of warning, this is a way tougher journey than meets the eye.”

This article also mentions some interesting scores for leading Australian businesses, from -7.5 for Westpac to +58 for iiNetAustralian Financial Review

Howard Olsen on why loyalty eats satisfaction for breakfast

Satisfied customers don't necessarily translate into loyal customers, because loyal customers are what really drive repeat sales and organic growth.

In the video below, Howard Olsen of M3 Planning takes a look at two organisations, KMart and Cadillac, which had relatively healthy customer satisfaction levels just prior to going bankrupt. He uses these examples to build a persuasive argument for why Net Promoter is a more effective system to measure and earn customer advocacy. For further discussion, please see a post by our Australian partner Genroe: Why should I choose NPS® over Customer Satisfaction, or Customer Effort Score?

In brief

  • Birmingham City FC has announced that its NPS for hospitality is consistently over +50. 4sight
  • Training biz NetCom Learning has reported an average of NPS of +67 over this year, corresponding with record inbound leads and significantly increased web traffic. Press release

Next Up: New Feature: The CustomerGauge EmailEngine Gives Users Full Feature Email In-Application

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