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Competing on Customer Success

Posted on April 14, 2010 , by Steve Bernstein

In a bold and potentially controversial move, Peer 1 Hosting has issued a challenge to all other hosting providers to publish their Net Promoter Scores.  As many businesses can become commodities over time, simply providing products and services is not sufficient.  And Peer 1 has recognized that their primary mission must be around helping customers achieve success. 
So why is this “bold and controversial?”  A few thoughts:

  1. Peer 1 has raised the bar, not just for their competitors, but for themselves as well.  Customers that are attracted by this campaign are likely to have higher expectations… will this help or hurt?
  2. Peer 1 seems to have established an (unaudited) baseline for themselves.  Will they work to improve from there, or rest on their laurels?
  3. Peer 1 has compared themselves to IT Services industry averages, and they compare well in that regard.  But I wonder what competitive benchmarking they did before issuing this challenge?  Rackspace’s fanatical support efforts have been well chronicled (here’s just one overview), and Savvis is proud of the their work with Net Promoter.

I applaud Peer 1’s efforts and look forward to hearing more over time about how they are improving their scores (and benefitting financially from the improvements in customer loyalty).  How will the others in the hosting industry react?  I look forward to hearing more.