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European Conference Blog 2008

3 Posts tagged with the programme tag
AlisonD

Designing for Action

Posted by AlisonD May 4, 2008

Normally, I pity the final speaker on the final day of any conference. What a tough job to keep the interest of an exhausted, data-overloaded crowd...unless, of course, it's the Net Promoter Conference and your name is Fred Reichheld! So instead, I felt sorry for the presenters in penultimate slots, well, except for my colleague, Deborah Eastman, Satmetrix's CMO. I have to confess to the fact that I believe she is one of the most engaging and inspirational presenters I have ever had the pleasure of introducing (and working with!). She often gets picked to present in the penultimate/final slot because she knows how to engage even a tired and flagging audience. And on Thursday, she did not disappoint!

 

Deb's focus was on ensuring that you design your programme in such a way that you can actually turn insight into action. As she said, if you can't take action on the customer feedback - why bother?

 

Peppered with real-life examples and anecdotes, she presented around six key points:

 

 

  • From Day 1, you must design your programme for action, using the NPS discipline to ensure that you are driving action across all areas of your organisation
  • Collect feedback from the voices (customers) that you value most
  • Ensure that you have the workflow process designed and in place so that your people can take immediate action
  • Make sure your people know who they are -- assign accountability for follow-up
  • Spend time to identify the root cause of the customers' issues and define your action around that
  • And last, but not least, CLOSE THE LOOP WITH YOUR CUSTOMERS! This will help to demonstrate that you are actively listening and will help you to build better relationships with more engaged customers.

 

 

There were no questions at the end of Deb's session: she'd covered the topic with great breadth and depth, with such colour from her own experiences, that the audience, quite simply, got it.

 

 

And to demonstrate that I am not the only "Promoter" of Deb's, as people left the room several audience members came over to personally thank Deb for a fantastic presentation and one even said: "out of every session I have attended across these two days, yours has given me the most hands on and useful data for developing my own programme. Thank you so much."

 

Told you! Deb Eastman does not disappoint!

 

Click here to download the presentation.

0 Comments Permalink Tags: satmetrix, davidge, design, methodology, programme, nps
AlisonD

Measuring What Matters

Posted by AlisonD May 4, 2008

Part of my role at the conference, as well as blogging, included introducing some of my Satmetrix colleagues who were presenting on the Programme Design track. This kicked off with Henry Jones, our UK Managing Director who was focusing on who, how and what you should measure in your NPS program.

 

 

Now, I'm not going to spend a lot of words in describing the presentation itself, but instead focus on some key points that came out in questions from the audience.

 

 

First of all was a question around response rates. Getting your customers to respond to a survey request is pretty key to gathering feedback! Short surveys, however, are not in themselves an automatic guarantee of a fantastic response. The question from the audience focused on the difference between Web and telephone response rates. Well, in my experience (3 years at Satmetrix and 15 in total in the customer management sphere), Web survey response rates can range from under 10% to over 90%. For telephone -- the response rates that we've been getting for a customer recently have hit as high as 80%.

 

But a word of caution -- before measuring response rates, you need to take strike rate into consideration. The response rate is usually worked out as the number of customers who agree to take the survey as a percentage of those customers who have been been successfully reached. What we've found is, dependent on the quality of data etc., is that the strike rate -- the number of customers you successfully reach -- can be as low as 15%. The real key to response rates is having true customer engagement.

 

 

Another question from the audience asked about correlations. Popular ways of understanding the areas which impact most on loyalty are linear correlations (based on Pearson's R) and regression analysis (dependencies of variables). The point is that if you are adopting the pure two question survey, you can't build correlations or use regression. You need to have asked specific scale questions about functional areas to be able to determine correlation/regression drivers. What you can do is use your verbatim comment analysis to determine the volume of comments to highlight what appear to be key issues for your customers. But be aware that volume analysis does not always throw up the same results as correlation. It may look, from the volume of comments, that issue A is the key area for action focus -- but correlation techniques may show that issue A is only the 3rd highest driver of NPS.

 

 

Finally, following the discussion of whether or not the 2-question approach or multiple-question approach is the right questionnaire to use, there was a query about multiple question surveys -- in that surely it dilutes the strength of of Fred's pure approach? NPS in it's purest form is the two questions: "How likely are you to recommend Company X to your friends and family?"; and "Why?". My take on this is that pure is great...but, a lot of my customers are based in the B2B world and they have very complex business relationships and deliver highly complex solutions and sometimes the two question approach does not give them the clear information and correlation data they need to build a successful, actionable program.

 

 

In those cases, we tend to use a mixed approach of short surveys about overall relationship and transactional surveys (also short) for key touch points. What we keep in mind is Fred's comment about being respectful of people's time -- and not asking them to answer a survey version of War and Peace.

 

Now there's a thought...War and Peace style surveys...how likely are you to recommend those?

0 Comments Permalink Tags: satmetrix, nps, davidge, design, methodology, programme
MelanieJ

So, you have measured Net Promoter. It's taken time to launch globally, and now the results are out.  What are some of the first questions you get from the CEO and regional teams? Do any of these sound familiar... "Is this a good score", "what about the competitors" and "what are the results for the other regions"?

 

As a seasoned researcher, it certainly does to me! And judging from the questions from the delegates after the Competitor and Cultural Benchmarking Session it seems that these questions are common in boardrooms around the globe.

The session conducted by James Young, Business Consulting Director for Satmetrix EMEA cautioned that there were a number of issues involved with answering these questions.  Frustratingly, it seems that there aren't always easy answers!

 

Sitting in James' session reminds me that there are a lot of considerations when trying to benchmark NPS.  These include cultural bias experienced in use of scales, robustness of sample and the industry in which you operate.  James advises that caution needs to be exercised when sharing benchmarks with senior execs as a lot of times they want to build it into compensation schemes or targets without much thought for these considerations.

 

James shared some insight around research that Satmetrix recently conducted in the US.  It appears that NPS scores differ greatly by industry and (surprise, surprise) the Telco industry tends to score lower NPS (circa 2%) than the financial services industry (circa 20%).

 

Also, when it comes to cultural bias (again looking at Satmetrix B2B research) customers in Latin America tend to score higher on NPS (average 35%) while the folks in APAC tend to be more reserved with their ratings (average NPS -10%).  Getting hold of free country level NPS benchmarks is like gold dust so James shared some online resources that people might find useful.

 

 

 

When it comes to competitive benchmarking, James shared the basics of how this could be achieved.

 

  1. Ask competitor questions in your own survey. Upside this is probably the cheapest way to get benchmarks, downside there is likely to be a positive bias as these are your own customers (so no true market position)
  2. Primary data.  Often research companies publish their own benchmarks based on the surveys they conduct.  This is probably more expensive than option 1.
  3. Custom or syndicated panel of non customers.  Upside: this probably the best indication of market position. Downside: probably more expensive than the other options

 

An important message communicated from the session was that while benchmarking plays an important part of an NPS programme, it really depends on where you are in the journey.  If your business is just starting with NPS, it may be more productive to concentrate on moving the scores for your own organization first, then after your programme has matured for a year or two, begin to incorporate competitor and/or cultural benchmarks. This gives the business time to absorb and action customer feedback and for the customer NPS programme to be embedded in the DNA of an organization.

0 Comments Permalink Tags: design, satmetrix, jugdev, white, young, programme, paper

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