Contact Center Solutions Featured Article

Net Promoter Industry Report Reveals Customers´┐Ż True Feelings

June 08, 2006

The findings of the “Net Promoter Industry Report 2006: Telecommunications” have been released, identifying the best and worst Net Promoter rankings within the US telecommunications industry. Comparing 33 organizations from across the sector, the report reveals which companies are most likely to have their customers recommend them and drive further business growth.
 
Research for the report was conducted and validated by Satmetrix, an enterprise customer experience management (CEM) company and co-developer of the Net Promoter Score. Each of the 33 top US telecommunications organizations are ranked according to their Net Promoter Score.
 
The Net Promoter Score is a metric based on actual customer feedback and links a customer’s experience to profitable growth. Customers are asked to respond to the question: How likely is it that you would recommend us to a friend or colleague? It enables a company to track promoters or customers who have a favourable view of doing business with the company, and detractors or those who have a negative view and will encourage potential customers to take their business elsewhere.
 
Satmetrix considers the Net Promoter Score to be the producer of the most reliable indicator of a company’s ability to grow by measuring an organization’s performance in the eyes of the customer.
 
Topping the inaugural report, Road Runner, a high speed broadband service provider by Time Warner Cable, earned a Net Promoter Score of 56 percent. Road Runner’s detractors equal 10 percent, passives settle at 25 percent and promoters equal 65 percent.
 
The company that returned the lowest Net Promoter Score within this report had less than half the percentage of promoters as Road Runner and more than five times the percentage of detractors.
 
Respondents who acknowledged Road Runner identified certain criteria as having the biggest impact on their likelihood to recommend the company to others. These criteria include: product/service delivery; ease of use/user friendliness; speed of connection; sales/buying experience; on-line services; billing; and ease of doing business.
 
Dr. Laura Brooks, vice president of research and business consulting at Satmetrix, noted that over the last few years, the telecommunications industry has been converging with merger and acquisition activity disrupting the industry and putting companies at risk of losing their customer base. By closely watching its Net Promoter Score, a company can manage change more effectively and both retain its most valuable customers and attract new ones.
 
The results of the Net Promoter report are based on actual responses from customers regarding their experiences with particular provider. An e-mail invitation explains the purpose of the survey, offers an incentive for participating and provides a link that allows the individual to click through to the Satmetrix survey site. All respondents are private customers of the companies included in the survey. To purchase the full report, go here.
 
The Net Promoter Score is an excellent way for companies to get an idea of how they are performing from their biggest critics – their own customers. It is pretty well known throughout the business world that a detractor may never tell the company why they left, but will certainly tell plenty of potential customers, costing the company future revenues. Providing these companies with the ability to capture this information is invaluable.
 
Something worth further investigation, however, is the method these companies executed to select which customers would receive the emailed survey invitation – whether it was all customers or a random sample – and how many of those invited actually participated. This information must be considered to gain an accurate measure of the true performance picture as the margin of error usually provides a good indication of the validity of the findings.
 
------
Susan J. Campbell is a contributing editor for TMC and has also written for eastbiz.com. To see more of her articles, please visit Susan J. Campbell’s columnist page.
 

Article comments powered by Disqus

Related Contact Center Solutions Articles

When it comes to Contact Center Agents 'Mind the Gap'

As content curator and contributor to the Contact Center Solutions Community, part of my function is to review information and insights from around the Web and illuminate them to our readers. In this regard, I would like to recommend an insightful posting from IT-Online titled, "How to differentiate customer experience." [ Read More ]
10/30/2014

Survey: Deloitte Optimistic for Increased US Holiday Spending

Professional services firm Deloitte, which completes financial advisory surveys, has released the annual holiday shopping survey for nearly three decades. This year's survey, the 29th annual, shows that U.S. shoppers are optimistic entering the season for giving, which also happens to be the season for shopping. [ Read More ]
10/30/2014

Dialing for Votes

Depending on how you feel about such things, next-generation predictive dialers have become an integral, dare I say "must have" capability for political campaigns. Indeed, with the U.S. elections only days away, anyone living here not only is more than aware from watching TV that the "get out the vote" efforts are already in full swing as the airwaves are saturated with ads, but this has become that time of year when caller ID and answering systems are a godsend. [ Read More ]
10/30/2014

Survey: Mobile Experience Trumps Brand Loyalty Among Gen Y, Millennials

Retailers be warned - brand loyalty counts for less and less among younger consumers, who are likely to head to competitors if their mobile experience isn't what they think it should be. [ Read More ]
10/30/2014
Subscribe here for your FREE Contact
Center Solutions
enewslettter.

Events

Weekly Live Demo
Contact Center Solutions

Register Today!


Weekly Live Demo
CaaS Small Center

Register Today!