Net Promoter® News: Macquarie Telecom Group, Vodafone Australia and Telstra

Written by Cvetilena Gocheva

Today’s Net Promoter News’ series will cover the stories of the telecommunication companies Macquarie Telecom GroupVodafone Australia and Telstra. All three companies and their NPS scores were recently added to our sister website NPSBenchmarks.com. In today’s Net Promoter News we will explore their NPS scores, along with the business initiatives that have helped each one improve or decrease their score. Hope you enjoy it!

Macquarie Telecom Group Beats Industry NPS Results

The telecommunication industry currently sits with an NPS of 28. Compared to other industries like consumer brands and technology, the telecommunication industry’s average NPS still has room for improvement. Macquarie Telecom Group’s NPS performance, however, stands out in an industry known for unspectacular customer experience. The company has achieved an NPS of 66, thus beating industry average NPS results.

Based on our research, three factors contributed to Macquarie Telecom’s customer experience transformation and NPS improvement:

  • Senior buy-in
  • Transparency of NPS shared internally and externally
  • Shorter and real-time surveys

While on a flight to San Francisco, David Tudehope, CEO of Macquarie Telecom, stumbled upon the Harvard Business Review article ‘One number you need to grow’. The read was a real eye-opener. David Tudehope realized that having a long 50 question annual customer survey is not the way forward to better customer experience. Tudehope dumped the traditional customer survey approach in 2012 after discovering that it could be replaced with a simple question for customers: “How likely is it that you would recommend Macquarie Telecom to a friend or colleague?”

Following the implementation of the Net Promoter System, Macquarie Telecom decided to adopt the whole methodology, “even the parts that were uncomfortable“. As a result, the company implemented real time surveys of all the important customer touch points, thus replacing the annual 50 question customer survey. After each call, Macquarie Telecom collects the NPS data and displays it on a screen in the room in real time. In this way, the company puts an emphasis on the transparency of their NPS – everyone internally and externally can see how well the company is looking after their customers on a real-time basis.

Empowering its employees to go above and beyond for customers is another factor contributing to Macquarie Telecom NPS transformation journey. The company bases all bonuses on the NPS achievements. Celebrating individuals and team with high NPS and great customer stories has been a key to Macquarie Telecom’s NPS success.

The results? Macquarie Telecom achieved an NPS of 66 over the first half of FY16, which is up almost 50 points from when we started this journey a few years ago. The company has also seen a hand-in-hand correlation between NPS and customer retention and cross sells (see image below).

Macquarie Telecom Group Net Promoter Score (NPS) trend analysis compared to customer retention, cross-sell and debtors (DS) between FY2013 and FY2017.

Macquarie Telecom Group Net Promoter Score (NPS) trend analysis compared to customer retention, cross-sell and debtors (DS) between FY2013 and FY2017.

Vodafone Australia’s NPS jumps up with 17 points

The telecommunication giant Vodafone now has its eyes on enterprise customers as it enters the 5G race in Australia. Up till now the mobile operator had predominantly focused on the consumer market, but recently Vodafone Australia chief executive Inaki Berroeta has said the time is right for the operator to make further inroads into the enterprise space.

“We are investing a lot of time and effort into understanding whether it’s something we want to get into and how we can provide value for our customers. – Inaki Berroeta

Vodafone’s customer base now comprises of up to 5.5 million and the upward trend in customers has been matched by improving consumer sentiment. Vodafone’s Net Promoter Score has jumped up 17 points to +20. Mr Berroeta has attributed the NPS rise to the telco’s network quality and its decision to slash international roaming prices. Vodafone has become an NPS leader in 13 out of 21 markets, with improved NPS in 15 markets during 2016.

Telstra Sees Dip in NPS

News come from Vodafone Australia’s main competitor in the 5G space – Telstra. The telco has missed its target of increasing customer satisfaction after its NPS has dropped 8 points to 17. Andrew Penn, Telstra CEO has also shared that the telco revealed an unexpected 11.8% fall in profit and a drop in mobile revenue. The company is highly committed to improving customer experience by launching initiatives like enhancements in T&Cs, simplification of roaming charges and more flexibility when getting hardware from Telstra.

“Despite these improvements, our strategic NPS was eight points lower that the same period last year, largely due to the impact of network disruptions on our customers. We expect our NPS to recover as our investments in networks and digitalisation are implemented,” – Andrew Penn, Telstra CEO

Our research also showed that Telstra has a goal of improving its strategic and episodic NPS by 3-6 points annually. The company collects two types of Net Promoter Score data : strategic and operational. Telstra’s strategic data measures customer’s likelihood to recommend the brand to colleagues and friends and compares that score to competitors’ scores. Based on that NPS, Telstra’s senior managers can make better long-term strategic decisions. Operational feedback, on the other hand, is based on individual customer interactions like customer support calls or home installations for the first time.

Final thoughts and recommendation

We hope you have enjoyed today’s Net Promoter Score news. As discussed in this article, the Net Promoter Score system is a powerful way to correlate customer satisfaction, retention and revenue. Using NPS right, telecom companies like Macquarie Telecom Group and Telstra have full understanding of which business initiatives add to higher customer satisfaction and as a result to higher retention and revenue. CustomerGauge has been preaching this for years – correlate your NPS to financial KPIs. If you are not sure how to do that, reach out to us!

Finally, if you’d like to learn more about how NPS can be monetized, make sure you read our latest eBook  – The Definitive Guide to Monetized Net Promoter. Download it below. 

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Written by Cvetilena Gocheva

Cvetilena is the Digital Community Manager behind NPSBenchmarks.com. Her role is to help more businesses become aware of the Net Promoter Score (NPS) system, the means it offers to drive growth forward and the importance of benchmarking. She discovered her passion for community engagement while working in a start-up in the UK. Cvetilena has now moved to Amsterdam and spends most of her free time riding her new bike and exploring the city.

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