Halliburton and Schlumberger’s Customer Loyalty Ratings and Revenues Increase

Halliburton’s customer loyalty ratings as measured by the Net Promoter Score have increased in the trailing twelve months (TTM) by approximately 33.6% and Halliburton’s revenues have also increased by approximately 35.69% during the same period.

Schlumberger’s customer loyalty ratings as measured by the Net Promoter Score have increased in the trailing twelve months (TTM) by approximately 17.01% and Schlumberger’s revenues have also increased by approximately 11.23% during the same period.

While direct correlations between a company’s customer loyalty rating as measured by the Net Promoter Score and their financial performance are not 100% correlated, it is reasonable to assume that as a company’s customer loyalty rating increases, the likelihood to increase business and improve financial performance also increases. Conversely, as a company’s customer loyalty rating decreases, it is reasonable to assume that business performance will also decrease as long as the customer’s have viable options to switch suppliers and are not locked into long term contracts.

Tracking the Net Promoter Scores of oilfield service companies such as Halliburton and Schlumberger are effective ways to track and measure customer loyalty and overall satisfaction and serve as leading indicators of future financial performance.

Kimberlite Oilfield Research tracks the Net Promoter Scores of the major oilfield service suppliers and also tracks each supplier’s performance in key areas such as equipment reliability, competency of field service personnel, technical support, responsiveness, availability & delivery, operational advantages including time & cost saving benefits and pricing competitiveness. Based on interviews with over 4,500 customers worldwide and over 1 million supplier ratings and data points, Kimberlite is able to confirm that using the Net Promoter Score as a proxy for supplier performance is an accurate and reasonable measure to employ as part of a supplier’s performance evaluation.

Given the need and desire to establish a forward-looking measure of company financial performance, it is recommended that tracking the Net Promoter Scores of the suppliers be employed to assist in the evaluation and forward modeling.