Rumble in the Aussie telco Jungle
The Australian telecom landscape is an entertaining space to watch as Telstra, Optus, and now Vodafone (the three biggest players in the market) have in recent times placed a renewed focus on customer retention with Net Promoter.
[caption id="attachment_2525" align="alignright" width="280"] Vodafone: Aims to fix "every single customer interaction"[/caption]
Vodafone is a particularly interesting case. In 2010, it dropped over half a million customers and watched its market share slide from 27 to 23 percent. The drop in market share is reflected in Net Promoter Score. The average NPS given to the business by customers who joined between 2011-2012 is -27.
Acknowledging the root cause of the problem with admirable clarity, Vodafone boss Bill Morrow noted; "We need to fix every single customer interaction. If I'm going to win you over and have you look at us in an admired sort of way, I can't miss once with you. I need to hit every single time."
In fact, the carrier is already making progress. Following a network guarantee launched in 2012, new customers are giving the business an NPS of +4. The business aims to return customer growth by the end of the year, and to have the fastest 4G network in the market.
But with both Optus and Telstra taking steps to improve their own customer experience, the CX rumble in the Aussie telco jungle is just beginning. ZDNet Australia
Airlines fly in formation on Net Promoter as industry standard
In recent times, US airlines have widely adopted customer satisfaction surveys, but a new article shines a light on how much emphasis many of them specifically place on Net Promoter.
According to the Wall Street Journal:
- Multiple carriers say they have “religiously adopted" Net Promoter.
- United, Southwest and Virgin America say they watch NPS closely, while JetBlue and Delta say their NPS results correlate to company profits.
- While non-NPS surveys with multiple questions get response rates under 5%, JetBlue says it receives a 15% to 20% response rate, and Virgin America says it gets 20%.
These comments are significant because they support some attributes of Net Promoter that we commonly share with prospects and clients, including that Net Promoter surveys drive higher response rates (meaning more raw data to from which to gain insights) and that improved NPS correlates with increased revenue (examples mentioned almost weekly in this space).
Fidelity uses NPS to broker new customers
Tweep @jbreitfelder has shared a print advertisement from Bloomberg Businessweek for online trading brokerage Fidelity, which appears to refer to the business’s Net Promoter program with the sentence: “Nine out of ten reviewers with a Fidelity Rollover IRA would recommend it to their friends.”
There seems to be a footnote to the sentence, which we assume gives the source of the figure. This is something which we recommend businesses always do when using statistics for marketing purposes, lest it alert the balderdash-o-meter of potential customers.
While we really like the idea of NPS as social proof for marketing, if we were to make a suggestion, it would be that sharing feedback (as well as scores) both internally and externally could be a even more effective use of the data gained by a Net Promoter program (Hint: CustomerGauge has customisable tools that make sharing feedback easier).
- Auto Expert, an automobile locating and buying service in California, has reported that its net income for 2012 rose 148% over 2011, with revenue up 24%. This correlated with an NPS of +93. Press release