How much can good customer data be worth?
In this test, we want to apply what we have learned about Customer experience, bad data and business value. The aim is to get you to apply what you’ve learned so you can use the same approach in your own organisation.
We will use StarHub as an example. Let’s start by looking at their reviews on the website TrustPilot:
In order to help:
- We can assume a rating of 1, 2 or 3 stars (out of 5) corresponds with an NPS score between 1 and 6 (Detractor)
- A TrustPilot rating of 4 corresponds with an NPS score of 7-8 (Neutral)
- And a rating of 5 would be a Promoter – corresponding with an NPS sccore of 9 or 10
- The calculation for NPS scores is shown below
Net Promoter Score (NPS) = % of Promoters – % of DetractorsBain and Company
Take a look at one of the 1-star reviews and think whether this has anything to do with bad data or bad data management practices:
Having calculated the Net Promoter Score, we need to put a dollar figure on the value of improving NPS. Without digging deep into the number of data problems they have, we can’t truly guess how much improving those data problems could unlock for Starhub.
As a result, we will assume that 5% of 1* customer complaints are coming from customers that would not complain if we had a better handle on their data. Perhaps we give them a more custom service, or just give them consistent answers when they call different staff, teams and departments.
To work the impact out we have to know their annual revenue. In 2020, StarHub delivered $2,028.8M total revenue. To make your sums easier, let’s assume the revenue is $2 Billion dollars exactly. Here’s the source of this info.
From our course, we know that for every 10% reduction in the number of detractors by 10%, then your revenue will go up by 4.14%
How much could StarHub expect to increase their $2Bn revenues by if they could reduce detractors by 5%?
StarHub could, of course, decide they want to delight some of their customers with data. Perhaps they want to make their customer experience the best in the business, by creating a concierge-level service. Providing great data to Customer Service Reps could help increase their Promoters by 5%.
We know from the course that if you can increase the number of promoters by 10%, then you can drive up your corporate revenue by 1.42%.
How much more revenue could StarHub expect to make if they could use data to add another 5% of Promoters to their customer base?
Question 5 – more bad reviews
Is this review related to data?
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