Data Science Reveals 3 Problems with the NPS Dogma

@machinelearnbot

In 2003, the Net Promoter Score (NPS) was formally introduced by Fred Reichheld, and, today, it is used by many of today's top businesses to monitor and manage customer relationships. Fred Reichheld and his co-developers of the NPS say that a single survey question, "How likely are you to recommend Company Name to a friend or colleague?", is the only loyalty metric companies need to grow their company. The NPS is calculated from a single loyalty question, "How likely are you to recommend us to your friends/colleagues?" Based on their rating of this question using a 0 (Not at all likely) to 10 (Extremely likely) scale, customers are segmented into three groups: 1) Detractors (ratings of 0-6), 2) Passives (ratings of 7-8) and 3) Promoters (ratings of 9-10). Fred Reichheld, the co-developer of the NPS (along with Satmetrix and Bain & Company) has made very strong claims about the advantage of the NPS over other commonly used loyalty metrics.


Cognitive chatbots in customer service: Beyond the hype and behind the scenes

ZDNet

AI-based chatbots are all the rage today, with market growth estimates in the range of 24 percent to 37 percent. As a result, the market is ripe with outlandish claims that chatbots will "revolutionize" enterprise software and similar hype. For enterprise buyers, the challenge is seeing through this marketing hype to find what's real and works. The new digital workforce provides significant ROI and NPS score benefits to our customers and humans are getting elevated to train and teach this new digital workforce. We have seen rapid adoption, particularly in the finance and insurance verticals.


AI Is Lifting Service-Center Performance - Bain & Company

#artificialintelligence

The science of service centers has advanced with hold-time estimates, call-back options and voice-recognition technologies. Yet once the customer reaches an agent, odds are high that the agent will not be able to solve the problem in one go. Unsolved problems lead to more complaints, greater customer churn and wasted time of employees trying to calm upset customers. Artificial intelligence (AI) promises to substantially improve the experience. Early efforts are helping companies improve the overall customer experience, while reducing costs--in staff time, service escalations such as field technician visits, and defecting customers--in the bargain.


Macquarie Telecom turns AU 4.3m loss to AU 5.4m profit for FY16

ZDNet

Macquarie Telecom has reported its results for the 2015-16 financial year, with the telecommunications services provider announcing a net profit of AU 5.4 million, turning around last year's AU 4.3 million net loss. Earnings before interest, tax, depreciation, and amortisation (EBITDA) were AU 32.3 million, a substantial 22.8 percent year-on-year increase from the AU 26.3 million reported for FY15. Revenue was up by 5.5 percent, from AU 192.1 million to AU 202.6 million, with its Telecoms business contributing AU 138.9 million in revenue, up 2.7 percent from AU 135.2 million, and Hosting Services adding AU 68.4 million in revenue, a 10.9 percent increase from the AU 61.7 million reported a year ago. Macquarie Telecom reported total equity of AU 82.4 million, down AU 5.1 million from AU 87.5 million, and cash and cash equivalents stood at AU 36.5 million as of June 30, up a substantial 470.3 percent from AU 6.4 million. The company attributed the growth in its Telecoms business to improvement in sales order performance and higher customer retention rates thanks to "service delivery improvement, operational efficiency, and exceptional customer service", while Hosting improved due to greater focus on customer experience, along with growth across cloud services and government.


NBN should adopt live net promoter score: Macquarie Telecom

ZDNet

The National Broadband Network (NBN) company should report its live net promoter score (NPS) real-time customer experience measurement in order to make customer service more central to its provision of wholesale broadband services, Macquarie Telecom CEO David Tudehope has said. Speaking at the CommsDay Wholesale and Datacentre Summit in Sydney on Tuesday, Tudehope said Macquarie Telecom's decision to embrace and report public data on the NPS has "transformed our business". He added that the industry is at a "crossroads", especially for providers of both telecommunications and datacentre services, to ensure a higher customer service rating -- which is four times worse than the banking industry's -- above all other scores through adopting a more accountable measurement system. "My call to the industry is: We don't want to be like the banking industry. We have a moment coming up, there's a fork in the road ... there's an opportunity for the industry to adopt the net promoter score, as the banking industry has, to really have visibility of our real-time customer experience across the industry," Tudehope said.