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Net Promoter News: Vodafone's Lazarus Moment, One Sure Way to Drive Employee Engagement, and a Customer Focus on the Way for RSA

Vodafone's Lazarus Moment Tied to Net Promoter Program

In the first half of 2013 we reported on how Vodafone Australia’s unhappy customers leaving were set to drive up its Net Promoter Score. From that post:

The reason is that most of these leaving customers were with the telco during the period where its network was causing user frustration, and still carry a negative impression of the brand. However, new customers that have subscribed with Vodafone since the network troubles stopped, have a much more positive image – and correspondingly higher NPS.

Despite the imminent rise of its NPS, the organisation was not resting easy. In order to win back the trust of customers it allocated a quarter of its marketing team to “experiences that drive NPS.” 

Fast forward eight months, and this investment has already begun to pay off. This week, the business recorded its first mobile subscriber growth in two years. Churn is also down.  Vodafone Australia lost almost 600,000 mobile subscribers in the three months ending September 30, but lost less than a quarter of that amount over the following three months. And how does that correlate with its Net Promoter program? Over the second half of 2013, the company's NPS also improved a (self) reported 37%. Australian Financial Review

Short and Sweet: One way to Drive Employee Engagement

[caption id="attachment_8899" align="alignright" width="204"]Rob Markey Rob Markey[/caption]

Rob Markey, one half of the authorship of The Ultimate Question 2.0, has written a post outlining four key steps organisations can take to improve employee engagement.

They are all worth a read, but one in particular was of interest to us:

"Short, frequent and anonymous online surveys give supervisors a better understanding of team dynamics and a sense of how the team believes customers’ experiences can be improved. What matters most, however, is not the metrics but the resulting dialogue. At AT&T Co., executives don’t distribute survey scores to line supervisors and their bosses; instead, they show only trends and verbatim feedback."

Markey also notes that according to recent Bain & Co research, employee engagement scores decline with length of employment, as you go down the organisational chart, and engagement levels are lowest among sales and service employees, (i.e. those who have the most interactions with customers).

For any HR professional these findings will be of interest, particularly combined with the high cost of staff turnoverBRW

Customer focus on the Way for RSA

Insurer RSA has flagged a significant change in approach to its market efforts. According to global marketing consultant Paul Hudson, insurance tends to be a pricing-led business, but the organisation wants to re-focus its efforts away from products and toward customers. 

"We've spent a lot of time and a lot of work trying to develop customer insight and use Net Promoter Score (NPS) and develop propositions with customers in mind rather than product in mind. It's a huge shift," he said.

In the UK RSA may have some ground to make up - research last year appeared to show its NPS at -12. but from the sounds of things it is a couple of steps in the right direction already. The Drum

It's Time for Net Promoter to have an Open Data Interchange


The Open Data Interchange - Net Promoter System, is an open-source initiative to promote the next step in the development of the Net Promoter System (NPS). The aim is to make it easy for vendors and users to exchange data in a common format, helping to make the Net Promoter System the de facto standard for loyalty and customer retention. The page details a file spec and test data - if you are interested in finding out more or collaborating, please visit the site for details.

In Brief

In its earnings call, Delta Airlines has reported a consensus-beating full year profit increase and earnings per share. The business also claims to have doubled its NPS, and says it has "aggressive plans in 2014 to continue improving for our customers." Get ready for takeoff! Seeking Alpha

Cloud hosting biz Edgewebhosting has announced a Net Promoter Score of +64.9. Press release

Next Up: Announcement: Proposed Open Data Interchange - Net Promoter System

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