Brisbane consulting firm Engaged Strategy has released findings from its 2011 Consumer Recommendation & Loyalty Study outlining customer experience outcomes for Australian mobile network providers. The Net Promoter Score (NPS) loyalty leader in the mobile network provider industry, was Virgin Mobile which had a NPS of -10%.

The Australian mobile network category, as a whole, achieved a score of -36 per cent and didn’t fare nearly as well as US mobile networks, which achieved an average category score of 19 per cent. Although there are probably cultural and local issues at play, it strongly suggests that Australian mobile network providers can improve their customer experience.

“What this research shows is that for every one negative comment made about a mobile network provider, it takes around four positive referrals to negate the damage. Because of this mobile network providers need to ensure that every interaction with their customers is positive,” Mr Christoper Roberts, Engaged Strategy Founder and CEO, said.

“Based on the scores across the mobile network provider industry, it seems certain that many mobile network customers continue to be disappointed with experiences provided by Australian mobile network providers.”

The study also found that 24 per cent of Australian mobile network customers believe ‘all mobile network brands are the same’ while 14 per cent believe that their brand ‘is not as good as some mobile network brands’. 9 per cent of customers even go so far as to say that they ‘hate’ their mobile network brand.

“This means that in total 47 per cent of Australian mobile network customers are disenfranchised and vulnerable to competitive offerings,” Mr Roberts said.

The complete benchmarking study reveals the scores of the top five mobile network brands including Telstra, Optus, Vodafone, 3 Mobile and Virgin Mobile.

The study is based on more than 2187 consumer responses Australia wide. All respondents were existing customers of their respective brands.

Companies were rated and ranked using the highly regarded Net Promoter Score which measures the likelihood to recommend on a scale of 0 to 10. Those who gave their brand a score of 0 to 6 were classified as Detractors, while those who gave a 9 or 10 ranking were classified as promoters. The Net Promoter Score is the percentage of Promoters minus Detractors.

“Net Promoter Score is widely recognised as one of the most accurate measures of customer loyalty and importantly is a proven predictor of business growth,” Mr Roberts said.

“Mobile network providers need to listen and find out what their customers want and take strategically take action against this feedback. The continued strong utilisation of social media injects an additional element of urgency because everyone knows word of mouth is the most effective marketing channel,” he said.

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Net Promoter, NPS and Net Promoter Score are registered trademarks of Satmetrix Systems Inc., Bain & Company and Fred Reichheld

Engaged Strategy is a strategic marketing consultancy focused on helping businesses grow by developing fresh customer, marketing and organisational strategies. Engaged Strategy is an approved Net Promoter Score® Loyalty Partner. Chris Roberts is an Industry Fellow at the University of Queensland, Australia. The full 2011-2012 Benchmarking study is available from Engaged Strategy.

Net Promoter, NPS and Net Promoter Score are registered trademarks of Satmetrix Systems Inc., Bain & Company and Fred Reichheld

Media Contact: Christopher Roberts

07-31681015

0409 588170