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

European Conference Blog 2008

2 Posts authored by: LennaM

Virgin Media launched their Net Promoter Program in 2007. Sean Risebrow, Director of Customer Experience at Virgin Media, is at the helm of the program, and he was at the conference to share their experiences and how they operationalised NPS the Virgin way. To date, they have collected 250,000 responses and are still actively collecting and taking actions driven by their customers' insights.

 

 

Who Is Virgin Media?
Virgin Media came into existence in 2007 as a result of a merger between Virgin Mobile, NTL and Telewest. Quadplay is the name of their game. To provide the context of the scale and complexity the program needed to achieve their goals and objectives, Sean asked the audience to think about the number of Virgin broadband customers that go through the sales process, installation, billing and how the cycle repeats when they move. Then think about the number of times these customers would call Virgin to talk about the problems that they are facing and finally think about the number of times customers would access their services throughout their relationship with Virgin. These figures rise at an exponential rate resulting in billions of customer interactions for the 14,000-strong organisation who is by far, the largest Virgin organisation in the world.

 

 

What Did They Measure and How?
Their goal was to develop a program that could continuously tune into the voice of the customer at an individual employee/customer level across the whole range of experiences. In-depth research has gone into helping Virgin Media identify the following significant customer journeys:

 

  • Join
  • Help
  • Change
  • Pay
  • Use

 

 

To address the different nature of these journeys, Virgin decided to run both operational and relationship surveys. There are 26 versions of the operational survey alone to measure the "Join", "Help" and "Change" journeys. The core essence of the survey was maintained throughout the versions with variations to capture the different types of events and the different lengths of the survey. These were the 3 core questions they asked in the short version of the operational survey:

 

  1. Would you recommend us?
  2. Why have you given us the score?
  3. Are you willing to provide us with more information?

 

 

Logic was built by Satmetrix into the survey to allow the answers to the third question to trigger the closure of the survey or the extension of the survey to capture further information unique to each journey. The quantitative nature of the additional insights helped to provide robust statistical measures of the relationship between each journey's touchpoints and the recommend score. Together with customers' verbatims from the second core question, Virgin was able to identify the key drivers of recommend and was able to diagnose areas that needed further improvements.

 

 

The other type of survey developed was a Relationship survey to capture their customers "Pay" and "Use" journeys and these followed the same design principle as the Operational survey.

 

 

What Have They Learned about Measuring and Rolling Out NPS?

 

 

  • Tracking one meaningful number was the vehicle they used to focus the entire business around what matters most to their customers. NPS provides a single, simple measurement across the business that everybody understood, from the front lines to the CEO. Is it cost-effective? Yes it is. They spent 50% less to collect feedback but are getting more actionable insights for the investments made.
  • "You cannot mobilize the whole organization unless you create a company-wide view". He believed that this was best achieved using a big bang approach, rolling it out across the business versus a phased approach. In total, they took only 19 weeks to launch the project across the whole of Virgin Media.
  • Understand the significance of survey timings. Conscious of accurately capturing the true customer perception of the complete journey, Virgin looked at all their customer journeys and identified the appropriate events to trigger the survey to capture customers' perceptions of how well they kept their promises rather than the customers' perceptions of their initial promise. For example, if they asked the customer immediately after they have contacted Virgin to arrange for a "Move", they may not be accurately measuring the whole customer experience of moving house until the move has been completed.
  • There is zero value in just the score alone. In the first 12 weeks they refused to release their NPS to the business, as they wanted their employees to focus on engaging with the customers and not just following the score. "The competitive advantage comes from what you do with the data".

 

"It's the promises we keep and not the ones we make that drive customer advocacy."

 

 

Let Customers Tell You in Their Own Words What Matters to Them
There will always be a small number of key drivers. People can become so focused on data that they stop hearing the real voice of the customer. This goes to the very heart of what Net Promoter is all about.

 

  • Get the right things right
  • Customers' expectations are reasonable
  • Customer-facing groups and not central teams are the primary stakeholders of the Net Promoter data.
  • There are 1-3 things that customer truly value

 

"The key is not to feel overwhelmed by customer data and think of them not from your perspective but from a front-line perspective". They went to each touch point owner and selected 10 comments from detractors to get them to focus on customer feedback. All their action plans were focused on reducing detractors. When they first started the program, they had the same number of customers who gave them a score of 0 as customers who gave them scores of 10. Today they have reduced the number of customers who gave them 0s by 30% but have grown significantly the number of promoters.

 

 

Everyone needed to see the impact of his or her interactions and decisions on the customer experience. They recognised that every single transaction was important to their customers and it needed to be equally important to them. Driving the voice of the customer to the frontlines meant that results were disseminated across the organisation and even managers took to working frontline jobs some part of the time. "If they are not working for the customers, they better be working for someone else who is."

 

 

Unleashing the Power of their People

Focusing thousands of employees on what mattered most to their customers meant shifting the focus from the mechanics of measure, publish and pay, to focusing on winning hearts and minds. They now have a "10" wall where they post comments from customers who gave them a Recommend score of "10," to share their strengths across the organisation.

 

 

For Virgin Media, it was all about the right data in the right hands in the right way at the right time. Everyone needed to know what they were accountable for and they provided dashboards that were relevant to each individual to drive actions. They were fortunate that the Virgin staff wanted to proactively do the right things. For example, a team leader from Manchester who shared with her colleagues in other regions the actions she took based on the insights.

 

 

"It is impossible to win the loyalty of customers without first winning the loyalty of our people."

 

 

Success Takes Time
Without action, any loyalty program is a waste of time. Virgin made a conscious decision to avoid focusing purely on the ultimate value of their data. Instead they recognised that the true value of the program came from the improvements they made across the business.

 

Their customers judge them from end to end, so it was important for them to keep a clear focus on the single most important thing for the customer, and get that right. This is about deciding how they allocate their investments to tackle the number one issue that the customer raised. Their definition of a successful team isn't the team who addressed the broad customer issue and not raise the score, but the team who was focused on improving their key drivers' performances.

 

"Fixing broken processes and fixing customer issues build the platform for winning customer advocacy."

 

 

Improving Advocacy Is Not a Spectator Sport
All parts of the organisation needed to act and move in the same direction to improve their Net Promoter performance. For example, their Managing Director asked 25 directors to name 12 issues raised by customers. The first time they were asked, it took them 13 tries. The second time they tried the exercise, they were able to correctly identify the issues the first time. Key success factors were:

 

  • Keep it simple and easily understood by everyone.
  • Constantly reinforce the importance of staying close to the customers.
  • Create a cross-divisional group empowered to make the big decisions.
  • Let customers drive the focus of improvement efforts.
  • Embed into the organisation - successful customer experience management programs aim to embed skills and knowledge in their operations and not the centre.

 

When they started the program, they did not have a central division empowered to drive the vision. At the start, there were a lot of conflicts in how they measured customer loyalty. They were measuring it from their business process view but not the customer view. Now in Virgin, customer perception is all that matters and customer perception has become the driving force behind improvements to their operational processes.

 

 

Key Learnings

 

 

  • Develop early proof points. Their focus on first contact resolution resulted in less cancellations.
  • Create an early snapshot of the cost to the business and value to their customers by touch points.
  • Stop spending money on the things that customers do not value.
  • Market level scores are more interesting than they are actionable.
  • Connecting dots between operations, financial and loyalty data takes time.

 

 

 

No Excuses, the Secret of Success Is Not That Secret
So far, the Virgin Net Promoter program has been successful in being a catalyst for cultural change. It was a simple concept to understand and rally around, a continuous feedback mechanism where everyone from the front line to senior management could clearly see the impact of their interactions.

 

"We did this to benchmark ourselves against other organizations. We wanted to execute the program better than anyone else. This was our operational model:

 

  1. Collect and distribute customer feedback.
  2. Interpret the data.
  3. Mobilize the organisation around what the customers told us in their own words.
  4. Operational delivery: it was about consistently being the best at each touch-point that mattered.

 

Right data, right hands, right way and right time"

 

Click here to download the presentation.

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How did an organization with a complex business arrangement that spans 4 continents, 18 countries and 110 business areas capture the voices of their key business partners? This is the story of HSBC's Net Promoter journey shared by Dr. Halina Miglus, Head of Customer Experience for HSBC Global Resourcing.

 

 

Program Objectives
Their goal was to have a deeper understanding on how they can build stronger relationships with their business partners, by identifying where they can provide the most value. The multi-faceted approach they adopted included identifying a common language, developing a centralized system and creating a framework to describe their relationships.

 

 

  1. A common language was necessary to identify the key stakeholders. "Business Partners" were defined as individuals within the various HSBC business areas who have migrated business processes to HSBC global resourcing. "Customers" were defined as people who buy products and services from HSBC. This specificity was required to ensure that the insights gained were actionable at the right level.
  2. The second area they focused on was determining and housing the population sample of stakeholders. Centralized systems were needed to detail the entire population of their business partner stakeholders.
  3. Finally, a framework was developed to segment stakeholders by business entities, business areas and sites where the businesses have migrated to. They needed to form bridges not only to have a clear view of where they were but also to understand the businesses in greater depth.

 

 

In order to begin understanding the voice of business partners, they needed a program that would meet the following criteria:

 

  • Simple survey instrument
  • Fast turnaround time from survey launch to the time information was provided to stakeholders
  • Information that was actionable and would immediately drive relationship management and operational improvements.
  • Obtain honest, candid feedback from business partners — honest, specific input they can act on. (Incidently, one challenge they faced here was a cultural one, as South East Asian business practice norms dictated the need to "save face" as opposed to being upfront about their views.)
  • Provide management-at-a-glance reports
  • Have a simple metric and a streamlined method of measurement that helps the organisation to focus their efforts. (Net Promoter was chosen metric due to its simplicity and its relevance to their organisation.

 

 

About the Program
The first business partner survey was launched in May 2006 and ran for three weeks. They asked three questions in the survey:

 

  1. Would you recommend?
  2. Name three areas that we do well in.
  3. Name three areas that we have not done well in.

 

It took less than 5 minutes to complete the survey and the initial response rates were fairly high, which was very encouraging and this grew as more people talked about the survey to their colleagues. She believed that their "less is more" survey approach encouraged higher than average participation levels (57% response rates resulting in a sample size of 612).

 

 

Dissemination of Results
The results were delivered in June 2006 at the HSBC Global Resourcing Management meeting. The negative scores got the attention of every single manager in the room that day. Finally they had a measurement that forced an objective, outside-in perspective of their business as opposed to the traditional defensive stance that they have adopted in the past.

 

To understand not just the score but the textures behind the score, they provided a visual output of the results that enabled every single business to have a reference to. An example was the slide used to depict individual scores for the Consumer Lending division. This was how they went a step further and provided another layer on top of the traditional Net Promoter Segmentation:

 

 

1,2 - Frozen detractors 
3,4 - Cold detractors
5,6 - Warm detractors
7,8 - Passively satisfied
9,10 - Promoters

 

 

To provide that added texture to their insights, they recorded the verbatims and categorized them into areas that they have or have not done well in.

 

 

Dr. Miglus then went on to stress a critical factor that organisations should never ignore.. the "Human Factor". This is about recognizing that people with busy jobs needed time to wrap their heads around a concept no matter how simple it may seem.

 

 

They then adopted a two-pronged approach to cascade communications throughout the organisation. For the internal management team, the results were presented using simple but comprehensive visuals and intensive sessions were held to educate the senior management in the Net Promoter Program. For the business partners, the results briefings were led by the executive management and involving senior management. This was the turning point in the program. NPS became a conversation tool for the head of every business area represented in the survey and the results were discussed extensively.

 

 

Pilot Key Learnings
The initial results presentations and feedback from conversations with several business partners led to a reorganization of relationship management teams. The overriding theme was how they can best focus on unifying their efforts to improve the quality of their relationships with their business partners as opposed to the traditional siloed business unit approach. Elegant and streamlined communications played a significant part in increasing acceptance and adoption within the organisation.

 

They also wanted to take key learnings from the pilot and raised the bar for the survey in 2007. In addition to the previous requirements, further needs were identified and Satmetrix was chosen as the vendor to help them achieve the following goals:

 

  • Professionalize survey activities.
  • Benchmark capabilities. They had vast amounts of data but they wanted the capability to benchmark themselves across regions while taking into account cultural differences
  • Trending data. They wanted to keep data from their 2006 survey and as such future surveys needed to be fairly consistent with the original design.
  • Survey logic to obtain overall global resourcing scores as well as site-specific scores by regions.
  • Online access to results and a flexible on-demand tool for their senior management.

 

 

The Improved 2007 Program
The survey was launched at the end of November and continued through mid December 2007. They noted an overall positive increase with promoters outnumbering detractors and they were also able to provide additional benchmarking data across regions. From the pilot, they identified 6 areas of global resourcing performance that mattered to the business areas and for the new survey, they asked respondents to rate them on the following:

 

Part 1: Overall Ratings

 

  • Accuracy and attention to detail
  • Clear and concise communication (Balance between cultural differences)
  • Acting with the right level of urgency. (They have young staff whose average age was 25 and this has been an issue for them)
  • Ability to interpret and proactively address business needs
  • Exercising good judgment when handling exceptional cases

 

Part 2: Site Ratings

 

Part 3: Likelihood to respond to the survey in the future (80% said yes)

 

 

Program Outcomes
They upped the ante in ensuring that response rates remained consistently high and they achieved a 76% response rate, a 19% increase compared to the 2006 pilot. The results from the latest survey gave the business the ability to identify key areas where they needed to focus their improvement efforts on. They used a traffic light system to highlight key drivers of recommend by business areas within each business entity. This enabled them to shift the focus from just measuring their Net Promoter scores to how they can move the scores. The key drivers vary significantly by regions. For Asia Pacific, their key driver was "the ability to act with the right level of urgency" as opposed to North America whose key driver was "Exercising judgment for exceptions".

 

 

At the end of this exercise, they needed to understand the groupings and pull them together to drive continuous improvements across the business. As a result, relationship management teams are crystallizing their approach to working more effectively with business partners. However in some instances, the business needed to recognize and understand where it was impossible to move the dial no matter how much they tried. They have now adopted a more structured approach to how they manage the relationships with the business areas and it has become a dedicated endeavor with regular updates and discussions around key issues.

 

 

The online survey results software provided the necessary drill-down that they needed and it was accessible throughout all levels of the organisation. Continuous improvement actions are becoming part of the daily business conversations and interactions in HSBC. For example, how can they move business partners from one behavioural category to a higher level or what does it take to have more promoters. Ultimately they now understand the key drivers behind improving their services and have managed to take key learnings from each category and have applied it throughout the business.

 

Click here to download the presentation.

... more >>
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