Archive for September, 2010

You might get satisfaction . . . but can you get true loyalty?

Traditional surveys ask customers how satisfied they are with the company.  We all know that it isn’t easy to keep customers satisfied!  But now there is an even higher aspiration that leading companies are striving for: Customer Loyalty.  And the Net Promoter Score, or NPS, is the best way to measure Customer Loyalty.

Here’s how it works. Imagine a company asks 10 people the following question: How likely is it that you would recommend our company to a friend or colleague? Customers are asked to answer that question using a 0-10 rating scale, which sounds easy enough – but unlike other customer satisfaction surveys, scoring highly according to the rules of NPS is tough work!

Whereas most satisfaction surveys would consider a rating of 7 or higher as satisfied, under the customer loyalty framework, you actually need a 9 or 10 to be counted as promoters.  Not only that, any score 6 or less counts as a detractor, and will cancel out a positive 9 or 10!  So you can see that if you get too many scores of 6 or less, it’s actually possible to get a negative NPS – and that’s unfortunately all too common.

Check out our example below to see what we mean:

10 customers participate in a satisfaction survey for Smartsalary.

In the above example, the satisfaction score is 90%, but the NPS is only 50%!  We like the fact that it is a harder mark.  We have used Net Promoter Score (NPS) because we would much rather have people say good things about the business – that is, promote the business – rather than just be passively satisfied.

We’ve only just begun the NPS journey, but with your help and continuous feedback, we hope to keep improving and serving you better and better!


p.s. Incidentally, in a recent blog post, we featured Zappos, an online shoe retailer.  They have an NPS of greater than 80% . . . one of the highest ever measured.  Smartsalary’s NPS is currently sitting in the 40’s, certainly one of the highest in Australia!  We’ve just begun, so will be interesting to see how we go!

Novated leases – changes? What changes?

Feedback from our clients is so important to us – in fact, it often helps us get an understanding of their perceptions or concerns about salary packaging. And if there are concerns, we want to make sure they’re alleviated as quickly as possible.

After speaking to some of our clients recently, we’ve discovered that some think that there have been legislative changes to salary packaging of cars.

Of course, our first question was – what changes?!

There’s been a lot of buzz about potential legislative changes as a result of the Henry Tax Review. Let us assure you, however, that there have been absolutely no changes whatsoever to any ruling around packaging a novated car lease. You can still package car leases, and any associated products, just the same as always!

If you have any questions or concerns about novated car leasing, please go to our brand new Smartleasing website at, or call us on 1300 144 873 – we’ll be glad to talk to you about the great savings you can make through salary packaging a car lease.

Deven Billimoria
Chief Executive Officer

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September 2010
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