Satmetrix Press Release
Satmetrix Benchmarks Net Promoter Scores in Four Key Industry Sectors
Reports Highlight Customer Loyalty Leaders
Foster City, Calif. — April 10, 2008 — Satmetrix, the leader in enterprise customer loyalty solutions and co-developer of Net Promoter® has released a new series of benchmark reports covering the financial services, telecommunications, technology, and online services sectors. The reports measure companies’ Net Promoter Score (NPS) for products and services, revealing companies with the highest customer loyalty and organic growth potential. Loyalty leaders include established brands such as Wachovia, American Express, Google, Apple, and Adobe Systems, as well as innovators in established markets such as Vonage for voice over IP telephone service and DIRECTV for home television service.
Ratings are based on survey responses from U.S. consumers regarding their actual experiences with each company, and were calculated using the NPS® metric. Co-developed by Satmetrix and loyalty expert Fred Reichheld of Bain & Company, NPS measures customer loyalty using a simple question: How likely is it that you would recommend us to a friend or colleague? The score is determined by taking the percentage of ‘promoters’ who are highly likely to recommend the product or service, and subtracting the percentage of ‘detractors’ who are unlikely to recommend.
Highlights from 11 reports across the four sectors include:
- Financial Services: Banking, Brokerage, Credit Cards – Among the 20 financial institutions studied, Wachovia received the highest NPS for general banking services at 32 percent, with American Express topping the list for credit cards with an NPS of 47 percent.
- Telecommunications: Internet Service Providers, Cable TV, Cellular Phone, Local and Long Distance Carriers – In the highly competitive and service-intensive telecommunications sector, low NPS is common for many providers. Verizon and Earthlink ranked highest for internet broadband service with an NPS of 10 percent. In the Cable TV segment, DIRECTV with its satellite service led with an NPS of 20 percent, and Vonage stood out in the local and long-distance telephone category with an NPS of 49 percent.
- Technology: Computer Hardware and Software – With only two percent detractors, Apple’s NPS of 79 percent outpaced all other companies profiled in the 2008 reports. In the software segment, Adobe Systems led with an NPS of 46 percent.
- Online Services: Online Shopping, Online Search and Information – Barnes & Noble led the online shopping category with NPS of 74 percent, while Google continued to outpace its rivals for core online search and information capabilities with an NPS of 73 percent.
“While NPS is based on asking customers about recommending products or services, it is actually a comprehensive indicator of customer loyalty. NPS is a strong predictor of repurchase behavior and referrals through word of mouth,” said Dr. Laura Brooks, vice president of research and business consulting at Satmetrix. “It’s important that companies focus on the key drivers of loyalty to deepen customer relationships, grow revenue, and increase profits.”
To learn more about Net Promoter or the Net Promoter 2008 Industry Reports visit www.netpromoter.com.
For Media
Dr. Laura Brooks is among several Satmetrix methodologists available for comment about the reports as well as other related topics on Net Promoter, customer loyalty strategies and word of mouth.
Net Promoter Industry Reports Methodology
The results of the 2008 Net Promoter Industry Reports are based on responses from an opt-in email survey sent to consumers in the United States during the fourth quarter of 2007. All respondents are familiar with the products and services that are the subject of the survey, having purchased them as a personal consumer. Companies featured in the reports are included based on the frequency of mention by survey respondents.
The Net Promoter Score measures customer loyalty using a simple question: How likely is it that you would recommend us to a friend or colleague? The score is determined by taking the percentage of ‘promoters’ who are highly likely to recommend the product or service (those who respond nine or 10 on a zero to 10 scale), and subtracting the percentage of ‘detractors’ who are unlikely to recommend (those who respond six or less). This yields the NPS, which is measured as a percentage ranging from 100 percent to negative 100 percent. For example, a company with 50 percent promoters and 20 percent detractors would have an NPS of 30 percent. Respondents who rate seven or eight on the zero to 10 scale are considered ‘passives’ and are not part of the calculation.
About Satmetrix
Satmetrix is the leading global provider of on-demand software applications and consulting services to measurably improve customer loyalty and link these results to financial benefits. As the co-developer of Net Promoter®, the company’s solutions enable companies to gather trustworthy data on customer experience, derive actionable insights, integrate this information into the daily work flow of employees and establish an ongoing dialogue through online customer communities. The company has deployed more than 700 enterprise solutions in 40 languages. For more information, visit www.satmetrix.com, or call 1-650-227-8300 in the US or +44 (0) 845-371-1040 in the UK and Europe.
Satmetrix and the Satmetrix logo are registered trademarks of Satmetrix Systems, Inc. Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.