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Net Promoter News: Grange Links Satisfaction to Retention, Hail to the Chief Customer Officer, Pipe Center “Perfect Sat." no Pipe Dream and the Net Promoter "Blue Monday" Effect

Grange sees “direct correlation” between satisfaction and retention. Insurers have had a rough time of late, with major US health insurers managing a paltry average of +4 in a recent Net Promoter survey across 30,000 US consumers.According to a new article in Insurance and Technology, insurers may be able to begin to turn around their dismal satisfaction levels by “shifting from a process mentality focused on executing steps, to a people-focused paradigm emphasizing communication and aimed at keeping customers happy.”The article goes on to discuss Grange Insurance, an automotive, home, life and business insurance provider, which constantly reviews customer satisfaction using the Net Promoter Score, records all customer calls, and embeds them in the relevant claim file. By continually evaluating these sources of intelligence, Grange can determine individual claimants' preferences and also tailor its training for customer-facing employees.All pretty straightforward, but the kicker lies in the final quote by CIO Michael Fergang, who asserted: “There's a direct correlation between customer satisfaction and retention. Net Promoter is our vehicle to evaluate that very quickly.”Insurers, how are you keeping your finger on the pulse of customer satisfaction? Insurance TechHail to the Chief Customer OfficerThe rise of the Chief Customer Officer (CCO) has been the topic of increasing discussion over the past few years, and in early February, we quoted Voxeo Chief Customer Officer Anne Bowman, who noted in Smart Planet that in general companies have “notoriously low Net Promoter scores,” with the average score only +10. This week, Bowman further expanded on her role in Inc. Magazine. According to the article, Voxeo had been using Net Promoter for some time, but was seeing “diminished returns” from the initiative due to the fact that the company did not have consistent processes for analysing the data and acting on the insights. One of Bowman’s initiatives was therefore to formalize the system, “by tying results to employee bonuses and asking customers to rate their support calls.”The article did not elaborate on the specific outcomes of this action, but we do know that Voxeo has a Net Promoter Score (NPS) of +57, which according to the company is “the highest customer loyalty score achieved by any business software or telecommunications company.” And it may also be interesting to note that Anne Bowman is recognized as a top customer service expert by her peers, having recently been invited to join the prestigious Chief Customer Officer (CCO) Council. - Inc. MagazinePipe Center and Climate Center shoots for “perfect satisfaction” In the UK, building services company Pipe Center and Climate Center announced that its national NPS rose from +15 in March 2011 to (an incredibly precise) +27.79 in March 2012.This follows the launch of a 2009 customer service initiative dubbed “Operation Service Excellence”, which aimed to make the business more customer-centric.The company is certainly ambitious with regards to its customer service. According to managing director Dean Fradgley, “Operation Service Excellence is a long-term initiative and we will continue striving to improve customer service levels until we achieve perfect satisfaction and perception scores every time they are measured.”We wish them luck! Refrigeration and Air Conditioning MagazineDIRECTV’s broadband plans for Latin America heat upSpeaking to Latin American investors last week, Evan R. Grayer, Vice President of Broadband for DIRECTV noted that in Argentina, the company saw a 25% increase in its Net Promoter Score for its Net service.Interestingly, this correlated with very low monthly churn rates – 1.3% in general and 0.7% among the DIRECTV Net Customer community. Seeking AlphaDoes the day of the week affect your Net Promoter Score?UK-based data analyst John D'Arcy shared an interesting insight this week – one of his client’s customer satisfaction scores (including Net Promoter) correlated closely to the day of the week. According to him “People hate Mondays. And they were taking that fact out on our survey. More people were satisfied on Thursdays, Fridays, and Saturdays before the rate started a depressing decline to a Monday low.”While we need to be wary of reading too much into a single experience, it does raise a lot of interesting questions. For example – are there patterns across industries that should be investigated? Should companies ensure they are surveying equal amounts of people each day of the week? And more importantly, do coffee brands see a lift on Monday mornings? ClickZ [Ed: this is interesting. We'll be following up fast with a quick dive into the CustomerGauge databases to see if what effect it has on our clients. At first glance, there maybe something in this.]Speaking of coffee brands, do check out our recent case study for Melitta, which achieved initial Net Promoter Scores of over +50, and an astonishingly high response rate of 60%.And until next week, happy Easter from all of us at CustomerGauge!Brought to you weekly by CustomerGauge. Browse Net Promoter News, or check out the back issues. To get a copy in your inbox sign up here.

Next Up: Case Study: How the inventor of the coffee filter is delivering a high-caffeine shot of Net Promoter excellence (Melitta)

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