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Net Promoter News: Vistaprint's repeat purchase fine print, Telstra's cash splash for service, Volume turns up VoC in agency land

Reading the fine print in Vistaprint's repeat purchase slowdown

[caption id="attachment_5492" align="alignright" width="360"]vistaprint Vistaprint: Making an impression with pricing transparency.[/caption]

According to at least one analyst, photoprinter Vistaprint is exhibiting concerning signs for the investor. Our Seeking Alpha pundit notes that the business has:

  • Acknowledged its 2016 revenue and earnings targets will be difficult to reach.
  • Displayed a lack of clarity regarding its short term prospects.
  • Decided it will no longer give quarterly guidance.
  • Grown very large in an industry with low barriers to entry and therefore at risk from nimble competition.

Furthermore, according to the business's statements at its earnings call, its year-on-year repeat order growth has slowed sequentially - a red flag for customer service pundits that is often a sign of decreasing customer loyalty. Oh dear.

But according to boss Robert Keane, there is a good reason for the slowdown in repeat orders. Previously, the business has aggressively advertised and discounted its products. This was an effective tactic to drive near term repeat purchases. However, it was much less effective at nurturing truly loyal customers - which is one of the most effective ways to grown revenue.

With this in mind,  the business has improved its pricing transparency, reduced the level of discounting, and brought overall prices down in an effort to nurture more sustainable and valuable repeat purchases. One sign that this strategy is paying off is that while volume of repeat orders is down, average order value from repeat purchases are growing. Furthermore, the business has once again reiterated its “strong” Net Promoter results (without giving too much away, it must be noted).

Nimble new competitors may materialise, and no doubt there are other challenges ahead. But after reading the fine print of its earnings call, the business appears to be making an effort to nurture customer loyalty. Seeking Alpha

Telstra offers cash splash for customer service

Aussie telco Telstra has enthusiastically embraced Net Promoter, and in another move to put a renewed focus on the overall customer experience, the organisation also announced that it is offering cash bonuses to more than 2,000 resellers and 350 Telstra-branded shops to improve customer service.

While rewarding superior customer service is good in theory, in practice it depends on how feedback is collected. As noted by our Australian partner Genroe:

“While incentivizing franchisees to improve customer service can be a good idea, the program will need to be carefully constructed to prevent gaming of the system. Where payments are linked to customer feedback scores there is a risk that front line staff (and their managers at the resellers) can actively try to alter the scores that customers receive.Genroe Sydney Morning Herald

Volume turns up Voice of Customer in agency land

CustomerGauge client Volume – a full service B2B digital and innovation agency – is one of the few agencies worldwide that uses Net Promoter to bring the voice of its customers into the organisation. Read about how the business is using the metric in a non-traditional industry at the press release or our blog post: CustomerGauge client Volume dials up Voice of Customer in agency land

In brief


  • Enterprise cloud security specialists MailGuard have published a graph that compares its Net Promoter performance against recognised global names. It's a pretty graph, but we'd gently suggest it could be more interesting if the business benchmarked itself against direct competitors in the same market. Mailguard
  • Trader Joe’s ranked highest among supermarkets in the 2013 Net Promoter Industry Benchmarks. Supermarket News

Net Promoter Vacancy: CustomerGauge is hiring! Sales Manager, North America for European SaaS Vendor

A fantastic opportunity to be US Employee #1 for a fast growing Amsterdam, NL based Software-as-a-Service company.  The CustomerGauge cloud application already has many big-name international clients, including a half dozen US clients.

Next Up: Move over watercooler: CustomerGauge’s Digital Signage the new driver of workplace innovation

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