ST. LOUIS, June 4, 2013 /PRNewswire/ -- Amdocs, the leading provider of customer experience systems and services, today announced the findings of a second global consumer survey of smartphone owners that explores the link between Net Promoter® Score (NPS) and service provider revenues and costs. The NPS is a customer loyalty metric, which measures the willingness of consumers to recommend a product or service to others.
The survey revealed a direct link between NPS and service provider revenues, with 88 percent of consumers indicating that they would increase spending with their service provider by almost one third if they received better service, and a further 84 percent stating they would be happy to recommend their service provider to family and friends, thus reducing the cost of customer acquisition.
"This type of research helps quantify the link between customer loyalty (NPS) and profitable growth," said Fred Reichheld, founder of Bain & Company's Loyalty Practice and creator of the Net Promoter system of management. "The results provide a clear message to the industry: improve customer service if you want to grow."
Key findings of the global survey of 2,000 consumers include:
- Service provider NPS remains very low. The average NPS of wireless telecoms companies was minus 3.2 percent. The score is determined by the number of promoters less the number of detractors, and ranges from -100 to 100 percent. Industries with good NPS typically score 30-50 percent.
- Consumers share bad experiences, friends and family listen. Three-quarters (73 percent) of consumers have complained about their service provider on social media on average six times in the last 12 months. Consumers mostly used their own Facebook page to complain (45 percent), followed by Twitter (26 percent) and service providers' own Facebook pages (25 percent). More positively, half of all consumers (49 percent) said they would switch to a service provider if recommended by friends and family, based on a poor experience.
- Turning detractors into promoters is good for business. Promoters are three times more loyal than detractors and have no intention of switching service providers. In addition, promoters are "very likely" to buy additional services (wireline, cable, broadband, etc.) from their service provider, unlike detractors. Eighty-six percent of promoters commented positively about their service provider to friends and family 9.5 times on average over the last 12 months.
- Proactive care and mobile self-service tools are highly effective NPS improvers. A previous survey from Amdocs, in February 2013, found these tools are highly effective in helping service providers improve customer experience, with 84 percent of consumers saying they would be more likely to recommend their service provider if the provider was able to identify and pre-emptively resolve potential issues affecting them; and 83 percent would be more likely to recommend their provider if they were offered easy-to-use and consistent self-service via their mobile device.
"Service providers need to simplify the customer experience to help increase NPS," said Rebecca Prudhomme, Amdocs vice president for product and solutions marketing. "Proactive care and self-service strategies, such as those supported in Amdocs' CES 9 portfolio, not only help increase NPS but, as demonstrated by this survey, can also increase revenue."
This latest research, conducted in May 2013 by leading analyst firm Coleman Parkes, is based on 2,000 interviews with smartphone owners in North and Latin America, Europe and the Asia-Pacific region.
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About Net Promoter®
The Net Promoter® Score (NPS) of a company is a common measure of customer loyalty and is calculated by taking the percentage of customers who are promoters (P) and subtracting the percentage who are detractors (D), based on their response to the 'Ultimate Question:' "How likely is it that you would recommend this company to a friend or a colleague?" Responses are measured on a scale of 0-10; 9 and 10 are promoters, 7 and 8 are passives and 0-6 are detractors. Companies that use the score find a tight link between profitable growth and NPS. In most industries, including financial services, retail, technology and telecommunications, the NPS leader has grown at more than twice the rate of the competition. A Net Promoter® systemhttp://www.netpromotersystem.com/> is a way of doing business that requires a true commitment by company leadership. It combines a reliable metric, loyalty economics and root cause analysis to form a virtuous cycle of closed-loop learning and action.
Net Promoter® is a registered trademark of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld.
For more than 30 years, Amdocs has ensured service providers' success and embraced their biggest challenges. To win in the connected world, service providers rely on Amdocs to simplify the customer experience, harness the data explosion, stay ahead with new services and improve operational efficiency. The global company uniquely combines a market-leading BSS, OSS and network control product portfolio with value-driven professional services and managed services operations. With revenue of $3.2 billion in fiscal 2012, Amdocs and its 20,000 employees serve customers in more than 60 countries.
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Amdocs' Forward-Looking Statement
This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs' growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, Amdocs' ability to grow in the business markets that it serves, Amdocs' ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, the Company specifically disclaims any obligation to do so. These and other risks are discussed at greater length in the Company's filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2012 filed on December 11, 2012 and our quarterly 6-K filed forms furnished on February 12 and May 16, 2013.
- Professional Services
- service provider
- customer loyalty
- Net Promoter