Federico Cesconi, Director of Business Intelligence, Cablecom, in Switzerland - very powerful presentation on how to follow up with detractors, and improve retention. This is a huge issue for almost all organisations these days.
In 2006 Cablecom 'met' NPS - one of the few companies that started not in measuring it, but in closing the loop, before being aware of the methodology - only later did he realise that it was the NPS he was calculating. They now use the NPS question to add accuracy in a Propensity to Churn data mining model. So, for example, they found that the key moment is around 9 months in the lifecycle, so he put in place a process to contact at 7 months to score NPS, and then callbacks were triggered depending on the scores. This proved to be very successful - in 52% of cases, the customer moved from detractor to passive or promoter - 23% directly to promoters.
Now they use NPS as a quarterly KPI, but when they started one of the first things they did was to sit down the top managers and give them 4 customer telephone numbers to ring up, ask the NPS question, and then start a dialogue with them.
He also stressed that if you use NPS as a KPI it has a huge cultural benefit, as all start to talk the same language, and now people who have never been interested in satisfaction are now asking for data!
It is now so embedded in the DNA, that external advertising uses real customers in posters showing what they like about Cablecom - very cool!
They collect around 40,000 feedbacks per month, and use text mining, But then, vitally important to take the holistic view of the whole customer experience, need to overcome problem of people listening to market research but doing nothing. And what about the 'proof points'? Their analysis tells that the Customer Lifertime Value of detractors is half the CLV of promoters
Federico's final message.........despite all the technology and systems, you cannot really claim to know your customers without truly listening to the voice of the customer
