Business leaders use a variety of metrics to gauge the financial health and performance of a company. One of the most popular metrics used by marketers is Net Promoter Score (NPS), a simple loyalty measurement to gauge customer satisfaction and likelihood to recommend. Last week, I had a chance to speak with Satmetrix data scientist Brendan Rocks about the results from the company's 2014 Net Promoter Industry Benchmarks reports. The findings
offer a glimpse into some of the aspects of customer experience that are helping to separate leaders and laggards.For instance, consumer confidence in financial institutions has continued to improve following the fallout from the 2007 financial crisis. Nineteen of 22 banks represented earned higher NPS scores compared to 2013. For its part, Bank of America notched a 20 point increase in 2014 following a 25 point jump in 2013.
Rocks says that a deeper dive into the scores reveals that retail banks and credit card companies are respectively seeing lifts in aspects of customer experience such as how consumers view the ease of doing business with companies in these sectors and whether or not customers feel they're being treated fairly. These are critical focus areas for retail banks that are striving to stem the flow of customers who are increasingly shifting their business to non-traditional financial services companies such as PayPal and Mint. Hopefully, these results also reflect that retail banking leaders are listening more closely to what customers are saying and are trying to make their institutions easier to do business with and more trustable.
In healthcare, Humana enjoyed a 14 point bump in its NPS score this year. "Customers are saying they're seeing good value for the money and they also feel that the policies are tailored for their individual needs," says Rocks. Although the healthcare industry is still in the early stages of reform, sweeping changes ushered in through the Affordable Care Act are leading healthcare insurers to become more customer centric as they suddenly have to cater to thousands if not millions of individual consumers as opposed to dealing primarily with employers as they had in the past.
Meanwhile, as wireless carriers engage in an all-out price war for subscribers, T-Mobile was the only wireless carrier that saw a significant statistical improvement in its NPS scores compared to 2013. Rocks says T-Mobile achieved lofty increases in satisfaction for the value of its service/bundles and overall value for money. Still, as some customers are looking to use wireless services without having to enter into contracts, alternative providers such as TracFone and Cricket Wireless continue to generate impressive NPS results.