Posts Tagged 'Net Promoter Score'

Smartsalary July Net Promoter Score at 50%!

About 5 years ago, we decided to introduce the Net Promoter Score (NPS) as a measure of customer satisfaction…well, actually, customer loyalty.  It’s not something we created, it happens to be the leading service metric used by progressive companies.  I think companies like it because a high NPS seems to translate to higher organic growth… perhaps not a surprise, really!

Here’s how it works. A company asks its customers the following question: How likely is it that you would recommend us to a friend or colleague? Customers are asked to answer that question using a 0-10 rating scale, which sounds easy enough – but only scores of 9 or 10 count positively and if you get many scores of 6 or less, you’ll wind up with a negative NPS!

At Smartsalary, our first monthly NPS way back in 2009 was about 21%.  This was a reasonable score, and a good starting point for our journey.

What we’ve found since then is that we were able to increase our score to the low 40s fairly swiftly, but that the 50% mark has been quite elusive – and for good reason! There is one prominent company in Australia with an NPS north of 50%…and that’s iiNet.

But we are pleased to announce that for the first time ever, we cracked the 50% threshold in the month of July… our best monthly result to date. In laypersons terms, here is a breakdown of what a 50% NPS looks like.

NPS score graph (1)

It’s a full circle back to our basic formula here at Smartsalary. We know that super engaged staff drive fantastic customer service, which then leads to positive word-of-mouth referrals, which ultimately drives strong company growth!

Looking Back On 2012

2012 has been a busy year for us at Smartsalary, here’s a look back at the highlights.

We are excited about the progress we’ve made on our three longstanding capabilities – Staff Engagement, Lean and Customer Loyalty – and are equally excited about the two new additional capabilities we’ve added: Agile and Innovation.

Staff Engagement
We’re thrilled that we once again achieved a 72% score, and proceeded to the 2nd round of consideration by Aon Hewitt for their Best Employer Award.

Lean
We commenced the deployment of Lean at Smartsalary back in 2008. Since then, we’ve improved our Lean capability maturity score from a 1.0 up to our 2012 target of 4.0, on a 5-point scale. This means that Lean principles are well ingrained and that we are approaching best practice.

Customer Loyalty
To measure customer loyalty we use the Net Promoter Score (NPS). This year our NPS was in the mid-40s, which is one of the highest ratings in the country. Our efforts were recognised by the Customer Service Institute of Australia (CSIA).  We are thrilled to have won both the State and National Service Excellence Awards for the Medium Business category.

CSIA-2012-NationalWinner-PNG

Agile and Innovation

When servicing our customers we want to ensure that we’re at the forefront of technology and innovation.  As such, we added Agile and Innovation as two further capabilities.

Agile enables tasks to be broken into small increments that typically last for just a few weeks. Each increment involves a company-wide cross-functional team that takes part in planning and executing new initiatives. Some examples of where we’ve used Agile in our Innovation initiatives include:

  • foray into the social media space, including facebook and twitter
  • introduction of an industry-leading smartphone application
  • award-winning implementation of a new customer management platform.

Each of these Innovation initiatives will be the subject of a future blog post in 2013.

As always, we thank you for your continued support. We’d love to know what sorts of things you enjoy reading about and would like to see more of in 2013 – please leave us a comment below.

Our Customer Service Stars!

We really love to celebrate success and last month we had a couple of exceptional performers in our service centre whose achievements we would like to draw attention to!

As our customers know, we send short email surveys to all those who ring our service centre.  One of the questions we ask is our Ultimate Question: Would you recommend Smartsalary to a friend or colleague?

Check out the results for two of our top agents in the service centre last month.

Using the NPS methodology below, you can see that these two agents had 64% promoters and 6% detractors, for a total NPS of 58% (which is derived by 64%-6%).

Given that NPS scores can range from +100% down to -100%, our current companywide score in the low 40s is pretty good.  Though as a company, we would do well to better understand our higher performers and try to replicate their skills throughout the organisation.

Leave a comment.


Deven Billimoria
Chief Executive Officer
Smartgroup

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