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Net Promoter News: Microsoft U-turn on Xbox One DRM Drama, How using iPads improved Hyatt’s NPS, CustomerGauge lands in North America

xbox one

Gamers shoot down Microsoft over Xbox One DRM drama

When Microsoft announced the launch of the Xbox One earlier this month at the annual E3 video game conference, gaming nerds everywhere gnashed their teeth at unexpected restrictions that seemed designed to make the console more profitable for Microsoft but less convenient for gamers – including a requirement to connect the Xbox One to the Internet once each day to verify users’ rights to the games played on the device.

Initially, the organisation didn't seem to mind. “We have a product for people who aren’t able to get some form of connectivity,” explained Xbox chief Don Mattrick. “It’s called [the eight-year-old] Xbox 360.” Ouch.

The backlash was swift and loud. And in less than two weeks, led Microsoft to reverse the most controversial restrictions – to the relief of gamers and the delight of controversy-hungry tech bloggers.

The incident is a good example of a business acting tactically on customer feedback. But it does not demonstrate that Microsoft has a systematic way to listen to it customers and act on feedback – something that a robust Net Promoter program and embedded closed loop feedback process would provide. By putting its customers before profits, it may have avoided raising the ire of its many fans, and placed the Xbox One on the wish list of nearly every gamer on the planet right from day one.

As incisively noted by TechCrunch blogger Matt Burns, “Once you put making money above the user, you start down a slippery slope.” TechCrunch

How using iPads improved Hyatt’s NPS

Last year, the Hyatt Regency O’Hare (in Chicago) began to experiment with iPads to streamline its check-in process. With custom-installed software, Hyatt staff were able to help visitors check-in, make payments, and even get their room keys from O’Hare airport - before they even boarded the shuttle bus.

This initiative is saving guests' time, but there are other surprising benefits. Because iPads are portable, staff members are now able to come out from behind their desks and interact with guests – meaning that the arrival is less of a transaction and more of a welcome experience.

Said a company spokesperson, “Having our staff completely untethered so they can facilitate check-ins at the airport has also been very impactful for our guests. It has created a level of customer intimacy that none of our competitors offer.”

The innovation has made a positive impact in the hotel’s Net Promoter Score, significant, according to the business, because “if 1 percent of loyalty program people stay one extra day or their recommendations result in additional bookings, that translates into a significant revenue increase for the company.”

With CustomerGauge Chicago formally open for business as of this week (see story below), we hope some of our clients will try out the process for themselves! BizTech Magazine

In brief

  • Zappos is a brand built on fantastic customer service. The organisation measures NPS and a personal service level (PSL) for each representative, with the goal to identify if customers will shop again and spread the word. It works. When Zappos asks “how did you hear about us?”  – the biggest response is friends and family, and 70-78% of their business is repeat customer business.  This revealing post by Chris Moody goes behind the scenes at Zappos to find what really makes the organisation tick.

Next Up: Net Promoter News: Amdocs diagnoses direct link between telco NPS and revenue, The nuts and bolts of Net Promoter System infrastructure

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