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Net Promoter News Round Up June

A selection of news from around the web, with some useful NPS benchmarks15% sales increase due to Net Promoter. From the Dallas Business Journal and others: Tony Hartl, founder and CEO of Dallas-based Planet Tan, is cover boy of this month's Fortune Small Business magazine. The story focuses on Hartl's success with customer service metrics. Last year, the company adopted a "net promoter score" approach, which measures customer promoters minus the detractors. He says the strategy led to a 15% increase in same-store sales during the first quarter of 2008. The company takes in about $10 million in annual revenue. ..."The success of our salons depends predominately on the customer's experience," Hartl says. "Finding the service edge that will be the differentiator between our stores and the competitor down the street is especially important in today's economy. In the first quarter of 2008, same-store sales have increased by 15 percent as a result of concentrating on survey feedback and addressing the customer's needs."

Net Promoter for Presidential Candidates

BIGResearch have been tracking NPS scores for presidential candidates. Survey size was more than 8,000 respondents with Respondents asked to rate, on a scale from 0 (Not at all likely) to 10 (Extremely likely), the probability they would recommend a candidate to a friend or coworker. 10 and 9 responses indicate Promoters, 8 and 7 responses are Passives and 0 through 6 are Detractors. As Hillary Clinton suspends campaign, Clinton promoters are shifting their recommendations.The worst score by party was John McCain (-2.1 NPS from Republicans). Obama was voted a slim +1.26 by Democrats.

Microtargeting "Influentials" in politics

Sticking with politics, an innovative political canvassing company is borrowing Net Promoter techniques. According to Campaigns and Elections TargetPoint is the only political firm using net promoter scores to find high-value voters known as "influentials.".

Net Promoter in Small Business

Good article from CNN Money "Get Customers to sell for you" which covers how entrepreneurs in small and medium businesses have been bitten by the Net Promoter bug. "Posting the score to employees, and encouraging them to boost it, can help a business owner focus her staff on customer service" says Ronald Hollis of Quickparts who displays NPS numbers on flat screen displays in the office. Article outlines how small business owners are following Reichhelds "Ultimate Question" book as a how-to manual and calculating score themselves. Results in nutshell:
PlanetTan (see above)    	66
Appletree Answering Service: 	56
Learning Rx    			72
Quickparts 			63
And a lovely comment here from Spencer Enterprises (NPS 72) about how NPS helped the company listen to customers.

Dealer.com crows about Net Promoter Score

According to Dealer.com's press release: "best in software industry for service" announced that its Net Promoter Score of 41 was within a few points of Adobe's score (the industry leader) of 46. Dealer.com is an online marketing service for auto-dealers, and have been using NPS since 2006.

Chief Customer Officer: Agent of Change or Fall Guy?

Short but sweet article from CRM News entitled "Chief customer officers need patience, energy". Companies like Bank of America, Chrysler and United Airlines have appointed chief customer officers recently - and some have had better results than others.Businesses see the need for putting a single person in charge: research found that 54% of North American banks have a chief customer officer or chief experience officer. A Forrester survey found 40% of companies with someone in a role of managing customer experience across products and channels and in large companies, one out of three has someone in a senior role starting to look at creating the position.Bruce Temkin says: "A lot of what the work is for a chief customer officer is culture change", but warns that companies who just require chief customer officers to improve the net promoter score are not taking the right approach."It's the kiss of death if the company turns to the chief customer officer and says, 'You're responsible for improving our net promoter score,' because then the rest of the execs wash their hands of it," Temkin said. "Then it doesn't happen."

Reichheld on creating an "Accounting Standard" from Net Promoter

I covered this on my commentary on the Net Promoter conference in London "Big Dog" Metrics... Again here, in a podcast Fred Reichheld says
"Net Promoter Score is our attempt at creating a universal system that is so simple and intuitive that eventually everyone will use it as their accounting system for customer and employee relationships. And as the need for that universal system is obvious, every single vendor in the satisfaction and market research space comes up with their own, unique ‘mine is better' black box system, because that's how you earn profits; buy my black box, my expertise. I think the only way we're actually going to make progress is if we just settle on something that's open source, everyone has access to it and it becomes an accounting system. And that, I think, should be a Net Promoter System."
More here

Vonage touts NPS in quarterly earnings call.

According to earnings transcript, Broadband telephone supplier Vonage are happy to talk about many customer metrics, including net promoter score. "The percent of customers, who actively promote Vonage, lets those who don't increase to 28% in April, up 10 full percentage points from the beginning of the year. The net promoter score is an important metric use to help assess the health of the customer base. Overall the higher the NPS, the healthier the base." The company go on to say: "In recent months we have seen an increase in the percentage of promoters, and a decrease in the number of detractors. As this trend continues, we believe it will translate improvements in customer churn over time." Evidence that NPS (and a focus on customers) is appealing to investors...

Airports adopt Net Promoter Score

Phoenix Marketing's Airport Net Promoter Scorecard (NPS) for the first three months of 2008 placed Tampa as the best "away airport" with NPS of 19.7 percent, well above the national average of -20.3 percent.More than 6,000 passengers took part in the study and rated airports on a number of factors including transport to and between terminals, terminal facilities and baggage handling.

BA NPS low, may go lower after T5 fiasco

From recent research within the travel industry: Emirates and P&O provide the most highly recommended experience to travellers, with a net promoter score of 32. Virgin also ranks among the top three with a NPS of 27. British Airways (BA) were in 9th position with a NPS of just 11.

Next Up: New Workflow feature: Your customers will probably be more excited than you are...

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