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

Contact Center Solutions Week in Review: Interactive Intelligence, Aspect Software and Nice Systems

What an unusual week in the Contact Center Solutions Community. I never thought I would use the word "war" in an article for the community, but interestingly in different context I ended up using it not once but twice. [ Read More ]
11/22/2014

Aspect Software Declares War in Workforce Optimization Market

We may be closing in on the holiday season and a time of "good cheer," but reality is that competition in business is a 24/7/365 affair. And, depending on whether you are a competitor or possible customer, it looks like this holiday season thanks to a new initiative by customer experience solutions provider Aspect Software you are either looking at a possible lump of coal in you X-mas stocking or a valuable present. The reason is Aspect has dropped the gloves in the hotly contested Workforce Opt… [ Read More ]
11/21/2014

Ozonetel Integrates CloudAgent with Zoho CRM

A big part of improving the customer experience, regardless of whether you are an enterprise or a service provider, is breaking down the silos of customer information that exist inside an organization. Having a full view of the customer is important to customer lifecycle management and hence the overall customer experience. And, one of the big places to look for enhancing visibility into all things customer related is obviously tight integration with various capabilities with customer relationsh… [ Read More ]
11/21/2014

LiveVox Data Center to Bring Cloud Contact Center Capabilities to Canada

As financial results from various contact center and unified communications (UC) solutions providers continue to flow in for this quarter two things are becoming increasingly clear. First, is that those seeking to upgrade their customer experience capabilities are accelerating the adoption of the cloud and hybrid solutions as their preferred path. Second, is that North America continues to be the hotbed of this with not just the large U.S. market as a target of opportunity, but also the vibrant … [ Read More ]
11/21/2014
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!