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NPS® News: Insurance Provider's Five Year NPS Journey and TransferWise's Promoter Driven Marketing


How NPS Helps NIB Improve its CLV

Five years ago the Australian private health insurance provider NIB introduced the Net Promoter System to change not just the way they viewed customers but also the way their business operated.

In a recent conference by NIB head of customer experience, Adam Novak explained how distribution was running independently of marketing and how retention was a company wide responsibility that no one was in charge of.

The problem was not that they weren’t able to resolve customer needs; in fact they found that they were quite good at it. The problem was they kept having to resolve the same problems continually, customer experience was “a verb, not a noun, and we didn’t have a program in place” to address systemic problems, said Novak.

However, since adopting NPS five years ago their NPS has jumped by 20 points and created a customer-centricity that looks to pre-empt service issues long before they become larger problems.

Novak outlined their NPS journey as a three-stage process. First was collecting better data on customer sentiment towards NIB’s products and services. Followed by creating workflow systems such that NPS data would be responded to. With stage three revolving around putting into action the insights that NPS was providing.

They now have a retention team dedicated to building better relationships with customers, and NPS has been embedded into all employee bonuses and KPI’s right from the front-line to the top of the company.

Novak also points out that over a 24-month period NPS promoters were more loyal than detractors and by responding to detractors and searching for solutions to their problems NIB was able to retain them for longer.

To read more about how NIB used NPS to improve it's customer experience, just click here.

The Power of Promoters: TransferWise Does Away With Traditional Marketing

TransferWise, the international money transfer start-up has done away with traditional forms of advertising. It’s success is based on a combination of word-of-mouth and social media, spread by customers, which has removed the need for traditional expensive marketing.

Moving away from the traditional corporate hierarchy, TransferWise is organized into autonomous teams with specific objectives and KPI’s. One such team is the “viral team,” whose sole purpose is to encourage people to publicize the company.

Gaining traction and getting known in the early days can be very hard for startups. TransferWise decided that to get through this phase as quick as possible they would introduce a referral program, whereby inviting three friends landed you 50 pounds.

The program not only served to bring in new customers but also acted as a source of data about who their promoters were. Interestingly, they found that cultural differences played a big part in how incentive programs functioned between countries.

For example Swedes weren’t very comfortable with the idea of telling their friends to use TransferWise and then making money for doing so, while other nationalities had no qualms about it. In response TranferWise changed the scheme, so that £25 went to the recommender and £25 to the friend.

Lending a helping hand in all this was NPS, which assisted them in understanding the promoters in their referral campaigns and social media. NPS allowed them to target the correct individuals in order to activate their referral capacity, whilst paired with user data it allowed them to understand why some customers became promoters and others detractors.

Read more about TransferWise’s adventures right here.

In Brief

The students of Wharton Business School have given their school a 51.

BlackBerry are starting to turn things around and have produced a 15 point rise from last year, to a score of 28.

The music streaming service Spotify has a healthy score of 46.

The shopping giant Walmart comes in a little lower with a score of 37.

While, Samsung doesn’t fail to please with an NPS of 54.

And USAA has a score of 75.

And lastly, a leading U.S. health care provider, Kaiser Permanente has a score of 48.

Next Up: AppDynamics' (Customer) Success With Net Promoter®

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