A specially commissioned survey conducted by research company Consulta to compare PPS, the financial services company focused exclusively on graduate professionals, against other major industry players using the South African Customer Satisfaction Index (SAcsi) Life Insurance Industry Benchmark, revealed that PPS received the highest Net Promoter Score (NPS) in the life insurance sector. This score indicates the likelihood of clients to recommend the company to family, friends, colleagues and associates.
Consulta was commissioned by PPS to conduct the survey using the SAcsi methodology, which provides an independent national benchmark of customer satisfaction of the quality of products and services available to household consumers in South Africa. The annual Life Insurance Industry Benchmark for 2015 was conducted in the fourth quarter of 2015 and the full report* can be accessed from the SAcsi website (www.sacsi.co.za).
The Net Promoter Score (NPS) is derived from one question in the survey where respondents are asked to indicate how likely they would be to recommend the company to friends, family or colleagues. Responses are captured using a 0 to 10 point scale, where a 0 indicates a very unlikely outcome and a 10 denotes very high likelihood. PPS’ score of 37,5% ranks well above the industry average of 28,9%.
PPS’ customer satisfaction score of 77.4 compares very well with the rest of the industry that scored an average of 77.3 out of a possible 100. Satisfaction scores are considered to be a precursor to customer loyalty, which explains why PPS are able to maintain such a high NPS score.
According to Gerhard Joubert, Executive: PPS Group Marketing, the ratings received by PPS on both the Net Promoter Score and customer satisfaction index are particularly pleasing as there is no better indication of the quality of a company than that reflected by its customers. “These results demonstrate the benefits of mutuality as a business model which means that the company exists solely for its members’ benefit.”
“All PPS’ profits are allocated to PPS members** on an annual basis by way of allocations to their PPS Profit-Share Accounts***. The total profit-share allocation to PPS members for the 2015 financial year alone was R2.2 billion. PPS members therefore have a unique value proposition as they qualify for a tax free lump sum pay-out of their PPS Profit-Share Account upon their retirement***,” he explains.
PPS also scored in the top two when it comes to customer expectations, which is a measure of the customer's expectation of the quality of a company's products or services, and perceived quality, a measure of the customer's evaluation via recent consumption or experience of the quality of a company's products or services. Joubert says that, “this score is extremely valued by PPS as the nature of our clientele requires professional, effective and efficient client services. The success of the company is built on 75 years of understanding the unique needs of graduate professionals , and sharing profits with its members**.”
He states that because PPS is based on mutuality as a business model, the company does not have to answer to external shareholders who may focus solely on a return on investment and short-term results. “As PPS operates under the ethos of mutuality the company is able to remain focused on delivering on its long-term commitments and promises - to create long-term wealth for PPS members to retirement.”
“We are very pleased with the results of PPS in comparison to the SAcsi Life Insurance Industry Benchmark as this clearly shows that our customers are not only very satisfied with PPS, they are highly likely to promote us to friends, family or colleagues. We believe these results are testament to the strong focus PPS has on providing good customer service and products that are tailored to meet the unique needs of graduate professionals,” concludes Joubert.