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Net Promoter Community > European Conference Blog 2008 > Authors > AndySernovitz
 

European Conference Blog 2008

12 Posts authored by: AndySernovitz

During the customer lifecycle there are certain critical experiences:  leasing, move-in, resident service requests, renewal, and move-out. Here's an example of drivers during move-in:

  • Apartment readiness (clean, appliances hooked up)
  • Office staff is available
  • Eliminate mistakes (missing keys, lease errors)
  • Preventing errors in move-in experience.

http://netpromoter.typepad.com/.shared/image.html?/photos/uncategorized/checklist_3.jpghttp://netpromoter.typepad.com/.shared/image.html?/photos/uncategorized/checklist_4.jpgThis led to a big chart with a move-in checklist in each building. (They call it the "poor man's Six Sigma"). The result of this visual, simple tool? 50% increases in NPS.

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0 Comments 0 References Permalink Tags: b2c, andy-sernovitz, archstone-smith

http://netpromoter.typepad.com/.shared/image.html?/photos/uncategorized/archstone_boston_common_thumbnail.jpgParkepettegrewParke Pettegrew shared many of Archstone-Smith's innovations in the apartment rental business, which include some very aggressive customer-facing promises.

Parke then asks: How can we be sure we are living the brand promise that we make to our residents?

They want to know how to understand baseline loyalty and understand what drives it. Then they want to translate these into operational improvement.

They have an interesting system to track NPS in parallel with their org chart -- regional EVPs, VP, etc. are compared against each other.
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0 Comments 0 References Permalink Tags: andy-sernovitz, b2c, archstone-smith

Raimund has fantastic examples of how they communicate NPS within the organization. The toolset includes:

  • Detailed 2,000 word NPS brochure
  • NPS conference with local university (Bonn)
  • Best practice documents
  • Flash animation video

Drivers of advocacy for T-Mobile

  • First -- value for money: The fundamentals need to be there
  • Customer services: 1) competence and 2) did they try, even if they can't resolve issue, and 3) friendliness
  • Network coverage

How do they drive NPS internally?

  • Comprehensive communication -- ensuring that every employee understands NPS
  • Measure the NPS of employees -- example: are call center agents happy enough to recommend product?
  • Immediate distribution of results, often weekly
  • NPS task forces in various countries.

 
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0 Comments 0 References Permalink Tags: b2c, andy-sernovitz, t-mobile

T-Mobile finds that NPS increases with proximity to customer interaction -- it rises significantly (as much as 70%) immediately after a visit to a store, and then begins to drops back as time passes.  Without the positive reinforcement, NPS drops back to nearly 0% over a few months. Lesson -- pay attention to customers!
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1 Comments 0 References Permalink Tags: b2c, t-mobile, andy-sernovitz

http://netpromoter.typepad.com/.shared/image.html?/photos/uncategorized/raimund_schmolze.jpgRaimundschmolzeFor all you NPS fans, Dr. Raimund Schmolze (see left) opened with a great video that explains NPS to employees. Ask him to borrow it!

NPS adoption at T-Mobile was driven by their board, who wanted to address issues of customer defection due to problems with "unfriendliness or lack of care in service" - 70% of defections. So they set a mission to be the "most highly regarded service company." He was concerned about how to adopt this new measure without the experience and tools ... and with traditionally low NPS in the telecom industry. So he set out to do it ...

They now measure NPS in every market, every month. Raimund shared a number of fantastic examples of how marketplace behavior drove month-by-month NPS changes at T-Mobile and with competitors.  The stories are hard to reproduce (I can't type that fast), but the lessons are clear:

  • NPS can be used to track the impact of operating decisions in fast enough time to use the data for meaningful improvement
  • NPS can be used to evaluate the impact of marketing decisions as they happen

 

 

 
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0 Comments 0 References Permalink Tags: andy-sernovitz, b2c, t-mobile

Other interesting findings:

  1. Customers have difficulty articulating why they choose an institution
  2. There is enormous switching inertia, even when consumers know they can get a better deal.
  3. Consumers are irrational.
  4. We thought that people would be attracted to the idea of doing business with a group they own, but the decisions were really based on service and features. They were resistant to the ideas of a relationship, and didn't want one.

 

 

 
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0 Comments 0 References Permalink Tags: andy-sernovitz, financial-services, b2c, filene-research-institute

GeorgehofheimerGeorge Hofheimer is the Chief Research Officer, Filene Research Institute (see left). George's organization is what they call the "think tank and do tank" for the credit union industry.

George's research set out to understand and validate NPS in the credit union context, and correlate NPS with growth.  The studied 17 credit unions and surveyed 50,000 of their customers  They got a 13% response rate.

The result? Credit unions had an average NPS of 53% -- compared to typical financial industry scores of -21% to 48%.   People love their credit unions.

They further looked into the loyalty question, with 97% of promoters reporting that they would stay with the credit union.  Promoters are likely to see their CU as their primary provider of financial services, have been customer for more than five years, and have a good overall experience. The research also found that NPS correlates very positively with membership growth.

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0 Comments 0 References Permalink Tags: b2c, filene-research-institute, andy-sernovitz, financial-services

Just 3 years ago we started talking about a new kind of marketing ... a kind of marketing based on a simple philosophy: Happy customer are your greatest advertisers. It is the philosophy that says:

  • Honesty matters. 
  • Respecting consumers is the secret to marketing. 
  • You do well by doing good.

We've also learned that marketing is what you do, not what you say.  Your brand is not what you advertise and it's not what your mission statement says. 


 

 

The reality? UR the UE: You are the user experience. Your brand is the sum of all the actual contact experiences that consumers have with your people and your products. These are the day-to-day qualities that are the story that will be told by the empowered consumer. That no amount of manipulation, obfuscation, inundation, or sheer quantity of advertising will change this.


 

Companies that embrace and understand this philosophy will be richly rewarded. Why? Because consumer respect directly drives sales, satisfaction, and profitability. Because customer satisfaction today is cheaper and more profitable than tech support later. And because satisfied customers advertise for you for FREE.


 

 

I hope you understand and appreciate how special this is and how important this philosophy is. For the first time, we put social good on the same side of the table as the all-powerful profit motive. Generations of government regulators and consumer advocates have tried to improve how companies treat customers. But I guarantee that the profit motive will do the job better.


 

 

We're going to make the world of business a nicer place.

 
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DasnarayandasFrom Harvard's Das Narayandas: Understand difference between features and benefits. If the benefit isn't meaningful to your customers, don't build the feature.

It's not just about benefits and value ... but your ability to communicate those benefits easily to the consumer.

It's also not about products that provide an economic benefit to the customer -- because if you can provide the benefit and communicate it easily to the customer ... so can your competition.
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2 Comments 0 References Permalink Tags: andy-sernovitz, das-narayandas, best-practices

From Experian's Laura DeSoto: Include the NPS for each of your customers in their records, so your entire organization can see how well they are being served (or how well they feel they are being served.
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0 Comments 0 References Permalink Tags: b2b, experian, andy-sernovitz, b2c

http://netpromoter.typepad.com/.shared/image.html?/photos/uncategorized/attendees_2.jpgGroup1_1As I walk into the room it's clear that this is not your normal conference.  Definitely not your normal research and measurement conference. 200+ executives are sitting in their seats -- focused, taking notes, and absorbing the presentations. What you don't see is people drifting around the halls, chatting, and making phone calls. Amazingly, I can't see anyone on their blackberry either. Without a doubt, this is a group who has a appreciation for this topic, and they are here to grab every bit of knowledge that they can.

It's going to be a good event. http://netpromoter.typepad.com/.shared/image.html?/photos/uncategorized/attendees.jpg
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http://netpromoter.typepad.com/.shared/image.html?/photos/uncategorized/tuqcd_1.jpgI bought The Ultimate Question on CD, so I could re-read it before the conference. My wife (a medical writer with no real interest in marketing), is often tortured by my business books on long drives. This was different. We found ourselves stopping the audio and discussing what we heard dozens of times, fairly intensely. That's what a great business book is all about -- it has to be a cross-over hit that makes as much sense to the non-business listener as the executive. It has to ring true to anyone who hears it.


 

This will be a great conference!
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1 Comments 0 References Permalink Tags: andy-sernovitz
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