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Net Promoter Community > European Conference Blog 2009 > Tags > cross-cultural
 

European Conference Blog 2009

3 Posts tagged with the cross-cultural tag

Lenna Mariana's session on Benchmarking your NPS performance raised a number of old chestnuts about 'The Score' and the need to understand the context of your market and your territory.

 

One of the counter-intuitive things about NPS for newbies is the concept that a negative score can be good. Negative always has to be bad - right?  Lenna's summary of the Satmetrix cross-cultural benchmarks in Europe really drove home three key messages for me:

 

1.     You need to understand your score in the context of your competitors. This is particulalry important as in some markets, the market average may be a negative NPS score BUT if you have an above average NPS score you can typically expect to out-perform competitors who do not. In fact the study by the London School of Economics identified some interesting trends here.

 

2.     You need to understand your score in the context of your territory. The European benchmarks covered by Lenna show some fascinating things. For example the average score in Western Europe is lower than the 25% in Southern Europe. So if you work for a multi-national that believes in league tables, the UK team could be best in class in the UK but seemingly failing against the score for Italy where the team may only be average against their competitors. Understanding this is vital to motivating a rewarding teams correctly.

 

3.     The verbatim responses from customers are usually more valuable than the number. If you haven't the benefit of benchmarks for your market sector and territory, it is worth remembering that the verbatim feedback from your customers about the reasons for your score will provide the insight you need to raise your game. The Net Promoter Score without this context could actually be an unhelpful guide if you don't understand the importance of cultural and market differences.

 

The Satmetrix benchmarks are well worth a look for organisations keen to understand where they stand against their competition.

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Creating an integrated NPS strategy: Oliver White, Director, Customer & innovation, Aviva

 

Oliver proudly states this is his favourite mantra right now, having recently joined Aviva. The phrase is not a headline taken from “Farming weekly”. “You Don’t Fatten the Pig by Weighing it” refers to the ubiquitous cross border challenge of helping countries to go beyond the Net Promoter score and implement the Net Promoter disciplines that we know drive improvements to the Customer Experience.

 

So who is Aviva? – Many of you will have seen the “One Aviva” brand campaign recently in the run up to One Aviva go live on June 1st. The heritage of multiple brands going back over 200 years have come together under the One Aviva brand. Aviva’s ambition is to be the most recommend brand or choice. Clearly NPS is the deal KPI to measure progress towards achieving that ambition and not only within the Insurance industry.

 

Operating in 28 markets and a diverse mix of distribution channels from direct sales to 91 bankassurance partner agreements brings its own cross border NPS challenges.

 

The journey so far - Back in 2005 the executive team took the leap of faith to link remuneration to a single balanced scorecard approach with a consistent customer measure and employee measure. NPS, was selected as the customer measure. Countries had the freedom in how they implemented their Net Promoter programme. Consequently not everyone implemented exactly the same NPS question, scale or methodology. In 2007 Group guidelines were created to bring greater consistency and NPS targets were put in place based on absolute scores. The phrase “herding” now springs to mind. In 2008 tighter guidelines were issued and NPS targets set “relative to an industry benchmark”. To support countries adopt best practices brought some consulting expertise to produce a “NPS blueprint” and made this available online to all parts of Aviva. This “Advocacy & Growth loyalty house” is being constantly added to. To assist country practitioners bring these key building blocks to life regular Webex sessions are held to showcase an internal best practice and support broader adoption across borders. The central team also invested in a global reporting platform to support all markets view and disseminate Net Promoter results and insight.

 

Some countries are further along the implementation journey than others. In Asia, India is a Net Promoter best practice market now into their 3rd year of rapid progress. In Europe Poland are strong believers in the Net Promoter discipline. Acting on Voice of Customer feedback they reduced the claims process from 30 days to 10 days with instant impact to the Customer Experience. UK Healthcare – have done a marvelous job of mapping the Customer Experience journey with the key moments of truth across the customer life-cycle.

 

In these markets the pig is clearly getting fatter and to Gloucester Old spot proportions!

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When I run Net Promoter surveys in multiple countries almost the first question asked is: "Will Net Promoter work in x or y country?" I've also been told that the Dutch or the Germans will never give a score of 10. In every case I have been involved with, the logic of Net Promoter has been proven - regardless of the territory. By that I mean the clear segmentation of customers into Detractors, Passives and Promoters.

 

The latest cross-cultural benchmarks in Europe - just published by Satmetrix -  show some fascinating cultural differences. For example, it is the Israelis that have the highest average NPS score in the region.

 

But if you don't have access to benchmarks in your industry in your territory, does that mean you won't be able to accurately interpret your NPS scores? The answer is a resounding no. If you ask supplementary questions which allow verbatim feedback, the tone of this feedback will clearly distinguish between the scores that represent the Detractors, Passives and Promoters. And as you build up your reservoir of feedback over successive surveys, these demarcation lines will become all the clearer.

 

If you were to ask the average Brit if they think they are like the French, the answer would be a resounding no. But the latest benchmarks show that maybe our recommendation DNA is very similar. Perhaps William the Conqueror left a Word of Mouth legacy too?

 

 

Moderator’s Note: click here to learn more about the EMEA Cross-Curtural Benchmarks.

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