Scottrade profits from high customer service returns
Scottrade has announced to the world that it scored the highest in customer loyalty in the brokerage and investment category in the recent US Net Promoter Benchmark Study by Satmetrix.
This strong performance is definitely unusual for financial services brand, considering the robust criticisms and headwinds the sector has faced in the last few years.
And perhaps even more impressive, the self-puffer claims not only that the company’s growth from its beginning in 1980 has been entirely organic, but that it has never closed an office or had to lay off an associate. Bearing in mind recent crises and obstacles this would be a great achievement for a company with 50 branch offices. But for a company with over 500 branch offices such as Scottrade, I think we can safely call it exceptional.
Women’s clothing: Kohl’s and Macy’s are the new black, Walmart the uninspiring beige
New Net Promoter research by BigInsight that analyzed the top five US retailers for Women’s Clothing (Kohl’s, Walmart, Macy’s, JC Penney, Target) throws up some interesting insights:
- Of the five, the most heavily advocated brands by a long shot are Kohl’s, Macy’s and JC Penney, all of which are department stores (as opposed to the discount options of Target and Walmart).
- For Kohl’s and JC Penney, price and selection were the key reasons that drive shoppers to make their purchases, but for Macy’s, it was quality and selection.
- Walmart was the only retailer of the five to calculate a negative score (-10.3).
There are several takeaway here for clothing retailers. But for shoppers there’s only one: If you want to pleasantly surprise your female friends and loved ones, visit discount retailers at your peril. The BIG Consumer Blog
Dell acquires AppAssure, based in part on Net Promoter Score
Dell has announced that it is acquiring software firm AppAssure, which it says will become the company’s primary backup offering targeted at small to medium-sized businesses.
According to Brett Roscoe, general manager and of data management solutions at Dell Storage, the key factors in the decision-making process were that it was going through a huge growth phase, and that this was complemented by Net Promoter Scores that were “off the charts.”
We’re always interested to read about high Net Promoter Scores that correlate with business growth, and it will be interesting to check in on this acquisition in a year or so to see if the momentum has continued. In the meantime, this appears to be an inspired move by Dell. ARN
Austin Benn outperforms in advocacy, falls short in transparency
This week UK recruitment solutions firm Austin Benn trumpeted a Net Promoter Score of +72 on its website, and says its nearest competitor comes in at +56.
While both of these scores are exceptionally strong, details on the site are pretty light. In the interests of transparency, we’d love to know more details on who did the work and sample size. The usual basics. (Plus, a small #fail. They tell us "*Net Promoter methodology based around customers scoring given factors on a scale of 1 to 10" - should have used standardised 0 - 10 for accurate results).
Austin Benn – if you’re reading this please feel free to add this to your NPS CV, and re-apply for the top Net Promoter spot! Austin Benn
A third of execs claim to use Net Promoter
According to Acxiom and Loyalty 360, Net Promoter is one of the most popular metrics used by CXOs as part of their customer retention strategies. So popular, in fact, that approximately one third of those surveyed claiming they use it – a big number indeed and somewhat higher than we may have estimated.
Perhaps in a related matter, less than half agree that they know who their most loyal customers are. Marketing Charts
In Brief: Other Net Promoter news this week
- CustomerGauge’s Australian partner Genroe discusses the three critical elements of Customer Loyalty surveys
- The Motley Fool sings the praises of Net Promoter-using cloud computing specialists Rackspace
- Costco claims highest Net Promoter Score among major department, wholesale and specialty retailers in recent survey by Satmetrix
- CustomerGauge followed up the "Monday Effect" news in last weeks Net Promoter News by looking at some data in They Don’t Like Mondays. Or Do They?