Skip navigation
Previous Next

European Conference Blog 2010

June 2010
0

Fred Reichheld, author of The Ultimate Question, kicked off our afternoon with a discussion of the economical ways that companies can delight customers. How do you get from a 20% Net Promoter Score to 80% without “breaking the bank”?

fred.png

Fred explained that the best companies may not measure NPS any better than others. But what they do extremely well is to find systematic ways to delight the customer without spending a lot of money. He used examples from U.S. fast-food chain Chick Fil-A to illustrate the point. They do many things that are different from other fast food restaurants, including:

  • having the manager work in the front of the store
  • keeping umbrellas on hand for customers on a rainy day
  • refreshing drinks for free
  • stationing an employee outside at the drive-thru to greet people

Fred continued the discussion with a video from Internet retailer Zappos.com, which was developed to support Chick Fil-A with its own employee training. It includes some great examples of Zappos.com employees at work, having fun. And the culture was illustrated by quotes from their CEO, Tony Hsieh, such as these:

“My passion never has been about shoes. It’s about service and culture.”

And, showing his “desk,” which was an open cube, Tony commented “The best way to have an open door policy is just to not have a door in the first place.”

Tony’s comments also echoed the value of creating more Promoters in a business. Mr Hsieh’s thinking:“Let’s take all the money we would have spent on marketing, and instead, invest it in the customer experience so that customers will do the marketing for us.”

As Fred explained, Zappos.com was successful with this strategy. Last year, Amazon.com bought the business for $1.2 billion. Selling shoes online could be thought of as a commodity business. But by figuring out ways to “wow” customers, Zappos.com was able to successfully differentiate itself and grow.

Fred stressed the central role of the employee experience in making this work, with examples from U.S. airline company Jet Blue. He also shared some examples of frugal wow at American Express, which focuses these innovations at 3 specific points in their customer interaction: early engagement with the company, getting a replacement card, and making a merchant dispute.

Fred’s last example was from IT hosting company, Rackspace. He explained how Rackspace focuses its entire organisational structure around service. Not just training, but also the way they structure their service teams…in a matrix with all of the required resources to serve the customer’s needs working in a close-knit unit. We had several members of the Rackspace team in the audience, and Fred took comments from them and from other audience members who shared their own stories of frugal wow.

What’s your story?

Download presentation

0

We were lucky to have David Speakman, chairman of Travel Counsellors, with us today to share his humor and his thoughts on how to succeed through trusted relationships.

Before I summarize some of David’s key points, it’s worth highlighting that his team of independent work-from-home travel counsellors earn some of the highest Net Promoter Scores in the world at more than 90% (94% based on their most recent data post-travel). At this level of performance, they have the travel counsellors call up any customers with a score of 8 or below, and their standard for excellence is the perfect 10.

David’s entertaining speech gave us a glimpse of how they accomplish this.

david speakman.png


The Business Concept for Travel Counsellors

 

A serial entrepreneur, David started his career as a grocer, opened a couple of restaurants (one a great success, one not), and started another travel agency, all before the concept for Travel Counsellors was born.

When he decided to get back into the travel agency business, he designed the business model for Travel Counsellors from scratch. He didn’t want a big staff or lots of overhead and phone bills, but he DID want to inspire people and he wanted people to be their own bosses.

Their unique formula creates that autonomy for their independent travel counsellors to be successful, by getting the core support they need from a central team in the UK that provides training, systems, processes, and the other key business needs.

The company has grown from a start-up to a network of more than 700 independent counsellors that generate more than £310 million of sales turnover.

Hiring for the Right Traits

 

An opening video told the story of one travel counsellor who recounted her sense of pride in serving her clients. As David put it, “You have to spend the time to get the right people into the business.”

They have found that the best travel consultants are team players, they want to belong, and they are family-oriented. They learned through trial and error that the right profile was not someone who wanted to start their own business, but instead someone who is passionate about service and making a personal connection with the customer. What Travel Counsellors did was to remove all of the hassles of running a small business, and handle this overhead so that counsellors could do what they like best: build relationships.

Relationships Are More than Service – It’s about Emotion

 

David describing his philosophy for creating emotional connections that go beyond “transactional service” to the heart of what makes for a trusted relationship with the customer. In the age of our technology economy, David pointed out some of his favorite quotes, including:

“Emotion is the one human ability that cannot be automated.”

“Companies need to understand that their products are less important than their stories.”

They analysed what really makes the difference between the most successful travel counsellors and the average ones. From this, they developed a list of 13 Golden Habits. They have made these Golden habits part of the management software that is provided to every work-from-home counsellor, reinforcing behaviours that help them build and sustain strong relationships. The company also compiles a book of stories about the good work of its counsellors to further reinforce the Golden Habits.

But it’s not just about culture. Their management software also embeds and tracks the value of referrals. For each travel counsellor they keep track not only of the number of referrals they get, but also who those referred customers are, and the value of travel bookings from referred customers over time. This helps them to truly understand the network effect of word-of-mouth recommendations and referrals for their bottom line and for the travel counsellor’s personal business.

How to Differentiate: “Don’t super-transact, super-relate!”

 

David illustrated the difference between transactional vs. relational models of interaction with these comparisons:

  • Shopper vs. Customer
  • Demands customer service vs. Looks to trust someone
  • Short-term customer vs. Long-term customer
  • Fear of not getting the lowest price vs. Fear of making the wrong choice
  • Looks for price vs. Looks for expertise
  • Does not value your service vs. Pays what you are worth
  • Does not want a relationship vs. Wants a trusted friend

The bottom line: you want to create a relationship so that people trust you. “It’s not about the money” was David’s big message. If you do the right thing, then the money comes to you. If you get the relationship right, then you will get the money right.

Download presentation

0

Deborah Eastman, Chief Marketing Officer at Satmetrix, led a discussion about different methods for motivating employees to drive customer-centric culture. The dilemma…should it be about pride or money? Deborah illustrated the importance of non-financial motivation in conversation with 3 guest speakers.

Life Financial Group: the “Wow Branch” Mentality

 

Deb and Irina.jpg

 

Deb started by interviewing Irina Chichmeli of Life Financial, a network of Russian retail banks. They survey about 3000 customers per month, and the feedback goes directly to the branch manager who is empowered to take action at the branch and escalate requests to the central processing groups for systematic process changes. Life Financial never tried to tie NPS to bonuses for the branch managers. Instead, their focus was to educate the branch managers on how NPS linked to long-term financial results, and short-term measures at the branch such as new customer acquisition. Making this connection was all it took to get branch level buy-in.

Irina also explained the importance of employee recognition programmes. They award branches for overall performance, including NPS, and they give out “Wow Branch” awards. Each branch who gets this award is given money that they can use for anything from teambuilding to improvements at their branch to support customer experience. It’s critical to give the branch autonomy in deciding how to spend the money, which reinforces the empowerment they want to convey for branches to find ways of succeeding with their customers.

They also have a programme called the “Wow Differentiating” programme. This programme’s goal is to engage employees in finding ways to delight customers. This is different from solving customer problems. It is focused instead on anticipating customer needs and doing things to delight them. Irina gave several examples, including one branch that purchased complimentary passport covers to give out to customers when they had to submit passports for copying. This little extra was so popular with customers that they introduced the practice in other branches across the company.

Experian: Customer Context “is” the KPI

 

experian.png

 

Doreen Byrnes and Jock Busuttil of Experian described how they involve all parts of their organisation in the customer promise by using a common language and a common set of goals. Accomplishing this started with a broad internal communication programme, and it shows up in all aspects of the day-to-day decision making.

Jock described how his product management team uses customer feedback to put KPIs into context. The KPIs themselves are just an outcome. It’s the feedback from the customer that clarifies what is needed to really move the KPIs in the right direction.

Jock told a story of a product upgrade that put pressure on a particular customer relationship. Most customers had moved over to the new version and the company was planning to discontinue support. While the customer was contractually obliged to move, their account manager, Ben, knew that the customer was a Promoter and didn’t want to spoil the trusted relationship that had been built up over the years.

Jock and Ben visited the customer to come up with a plan for making the transition, and they made the decision to extend support for the customer in the interest of their long-term loyalty. This is one small example of how they have been able to maintain retention rates of more than 90%.

Verizon Business: “One Team” of more than 200,000!

 

verizon.png

 

Paul Vincent of Verizon Business described how they drive a sense of pride across more than 200,000 employees who serve their corporate and government clients worldwide. How does such a large organisation go about creating a “wow” factor?

For Verizon, it all starts with 5 service excellence imperatives:

  1. Deliver service consistently worldwide

  2. Proactive, responsive, reliable support

  3. Best-in-class service management

  4. World-class customer enablement

  5. Customer-centric continuous improvement

What really struck me was the consistent approach to employee engagement that Paul described. They have a very deliberate strategy to have the same roles and organisational structure worldwide. Paul called this their “one team” approach, which allows them to deliver consistent service to customers who, like Verizon Business, operate globally. He then elaborated on a series of employee award programmes that form the foundation for motivating their “one team” of “teams” to deliver customer delight.

The results are impactful. They have seen a 23 point improvement in their Net Promoter Score and 27% increase in sales of strategic services.

 

Download presentation

0

The Proof is in the Programme: Incremental Steps to Success
Marc Berendes – Head of Enterprise Solutions Europe, Abbott Diagnostics


Moving from a traditional market research approach to NPS around 2007 based on reading “The Ultimate Question” and the threat of merging with a major global organisation.


Customer loyalty journey in a B2B business:

 

  • Buy-in from stakeholders was key first step to getting started despite initial resistance at Exec level, based on the need to understand their customers.
  • Build a core of champions across the organisation to drive the programme.
  • Transactional NPs focus initially piloted with the service line but then expanded across the customer journey (to include sales, delivery, quality of product)
  • Closed loop process in place from the beginning which include email alerts and 72 hour response
  • Changed the mind-set to drive a customer centric culture moving away from a product centric culture
  • Success only achieved through the commitment of the country managers
  • Institutionalise the NPs programme by using  the champions at country meetings to relay feedback and subsequent actions and success
  • Gain buy-in from internal detractors – very important to get this sorted out by aligning all departments and functions
  • GM annual bonus plan linked to NPS
  • NPS is part of all management goals from 2010 – this has made a fundamental difference because decision informed by the voice of the customer based on commentaries
  • Focus on NPS training across the organisation plus new joiners, service and sales training
  • Aligned the sales organisation to the new NPS mind-set
  • Customer satisfaction has led to increased profits to the extent that it has generated additional finding for R&D
  • Communication across the organisation to make the programme real
  • Communication back to the customers about the programme
  • Cultural differences exist and the results vary widely – no clear reason behind this.
    • The NPS programme has led to several improvements across the organisation, including quality improvement, service delivery, product changes, packaging
    • Sales force reorganisation to be more responsive to the customer needs through NPS
  • Changed and built trust across the organisation – customercenticity is now global and the journey continues
0

Robyn Weeda Director Program Management Office gave a very exciting and insightful presentation around how the call centre is centred around the customers.

 

symantec.png


The consumer business for unit has doubled their NPS score since 2007. A couple of years ago it was not unusual for a customer to have to wait two hours on the phone to get this issue fixed with their virus software now most customers feel they get a positive experience


Then:
1 Installation took 4 minutes and 23 seconds to install
10 boot time took 12 minutes and 14 seconds
100 foot print was 406Mb


Now:
1 installation no time at all
10 boot time less than 10 seconds
100 foot print less than 100Mb


The Symantec product range has received more than 100 product awards in 2010 compared to less than 10 in 2006.


What Symantec customers really want - which was shown in a video- is

 

  • Access to the right person immediately who can fix their problem
  • Customers want to talk to a human being
  • Easy way of getting to someone who can make a decision
  • Customers don’t want to talk to someone who just reads from a script
  • The agent should be like a good doctor when you describe the problem the doctor knows immediately what the issue is. Can identify the problem, acknowledge and fix.

 

Symantec have more than 2100 people supporting their customers in 24 languages in more than 30 locations worldwide. They receive over 12 million contacts per month into the call centres.

 

  • Symantec’s  main focus was to concentrate on first contact resolution FCR.
  • Proactive resolution process for the agents.
  • They implemented a reverse DSAT audit
  • Agent certification and training
  • Being available when the customers are
  • Self service tools


FCR average in the software industry is 40% Symantec has managed and astonishingly high figre of 76%.


DSAT reverse audit process was 58% and is now 90%


Symantec have created internal videos with real customers


Invested in 50.000 hours of agent training.


Social media is playing a more and more important role for Symantec who are now using YouTube, twitter, facebook, and blogger sites.


Staff are now proud to work for Symantec and happy to delight customers.

 

Download presentation

0

Robyn Weeda Stephenson, Director, Program Management Office, World Wide Support and Customer Experience, Consumer Division Symantec


Norton Ant-virus – poor NPS in 2006 now massively increased


How did they get this improvement:

 

  1. Fixed the product through technology innovation over past 12 months, resulting in reduced calls into the support centre, therefore more time to invest in those customers who really need help
  2. Need to listen to customers – great opportunity when they call in for support – gathered data from several tools, including relationship NPS, analysis,
  3. Enhancements delivered as a result of customer feedback:
        • Improve first contact resolution (from industry average 40% to over 76% for Symantec)
        • Proactive resolution processes (accountability with the front line agents)
        • DSAT (dissatisfied) reverse audit processes – moved CSAT from 50% to over 90%)
        • Agent training and certification – making sure people are knowledgeable on products and OS before answering support calls – staff more loyal
        • Taking the conversation to where the customer is – multi-channel approach including social media, community, forums, blogs and reward contributors – extensive social media monitoring and contribution
        • Providing self-help or support within the product and online through dedicated site – 57% of traffic coming from the product self-help directly, 93% of traffic comes from online in total
        • Easy transition to assisted support – use technology to route support requests to appropriate resolution
        • Remote assistance to help online by taking control of machine remotely to resolve support issues
        • Leveraging the Symantec team as advocates to pick-up detractors and log them with the escalation systems
            0

            WHAT YOU ASK DETERMINES WHAT YOU HEAR – Putting Yourself in Your Customer’s Shoes, Steve Hewson, Managing Director of Operations, COLT

             

            Colt knows a thing or two about managing IT infrastructure & mission critical systems in a way that creates trust with over 35,000 customers. Colt now plans to leverage its stability and move forward from flat to double-digit growth. So in an industry sector where in recent years customer expectations have grown at a faster rate than the industries ability to deliver, customer trust is a critical. Colt can only be successful if the client CEO’s & CIO’s trust us says Steve

             

            colt.png

             

            Put the customer at the centre of what you do. Steve posed some great questions.

            Have you ever met a company that says it does not listen to its customers and does not act upon customer feedback? And Have you ever met someone who states they are customer centric, yet their business challenges clearly sit with someone who is not?

             

             

            Some companies say “we do a survey” to demonstrate they are customer centric. If it is not embedded into the orgnisation and it’s just an overlay then 90% of the organization will see it as ‘someone else’s” responsibility. Not theirs! With no consequences, it will be diluted.

            So what are the attributes of success?

             

            Steve suggests employees fall into the trap of seeing things largely from their own perspective and not their customers. Why? Their filters are set to internal.  Steve advocates a simple remedy. Stand in customers’ shoes. Experience what customers experience and feel the pain as your customers see things. It may feel like trying to run a business marathon in size 12 hobnail boots, but you can turn them into golden slippers.

             

             

            How does Colt use customer feedback?

            • Customer feedback is the primary measure to monitor performance
            • It is hardwired into day to day business
            • Customer KPI’s are combined with standard operational KPI’s to provide a combined index
            • Negative triggers are acted upon
            • It affects all employees’ compensation

             

             

            Finally a few key tips that every NPS programme can benefit from:

            • Be brave, do not create a programme that is just an overlay
            • Its not someone else responsibility (the insight or market research team
            • Don’t ask customers for feedback unless you are going to follow up (at least with detractors or weak scores)
            • It must align with core values, the intrinsic DNA of the company
            • Measure and link down to account level (loyalty & revenue at an account level)

             

            Download presentation

            0

            Gerlof returned this year to share with us his 2010 game plan.


            Ball is a worldwide player in the packaging & beverage can market. Ball supply global, national and regional brands including Coca-Cola, Pepsi, Carlsberg and Nestle. In Europe alone, 800 truck deliveries are made every day and for some clients a truck arrives every 3 hours. In fact a staggering 1.6billion beverage cans a year! If I was to put these end-to-end they would stretch way past the end of my garden, having already circled the earth 6 times.

             

            So in this price focused volume market, how is Ball able to distinguish itself from the competition, and position itself to provide a full range of services, while increasing margins in a sustainable way?


            In 2009 Ball launched a customer VIP (Value Improvement Relationship) programme based on NPS. Ball use Voice of Customer data to get close to their customers and understand what their customers expect and really want. Gerlof explained how they use this to engage employees to listen & take action all in an effort to add value and move their customer relationships from satisfaction to loyalty.


            Capturing VoC at an account level is what enables Ball to take action on the key NPS drivers and relative importance for that account. Ball now have 80 improvement initiatives running. A complete contrast to the old method of asking customers a 96-question survey that took almost an hour to complete and provided a Powerpoint deck the width of a telephone book!  Account level feedback is far more actionable and Ball now has 80 improvement initiatives in progress.


            The VIP logo has also helped. Everyone within Ball Packaging and customers alike knows this internal branding. Both are also familiar with the logo and what it stands for, so it helps drive up participation. Today was Gerlof’s 36th presentation this year. You have to keep communicating. The more you do it, the higher the chance employees will stay engaged. The same goes for the Board of management. You have to feed their interest and involvement. A theme we heard about from other speakers at the conference this year. At ball the Mgt team review the NPS and progress every month. The NPS (currently 35) is less important than the trend.

             

            So what are the key learning's so far?

             

            • Closing the loop with customer immediately after taking the survey
            • Communicate and communicate again
            • Celebrate success – If a customer gives you a 10
            • Take action at the account level – Key NPS drivers can differ significantly by account
            • Right customers right service – Not all services to all customers
            • Keep the board informed & maximize their participation

             

            Finally, service excellence creates loyal customers and loyal customers are prepared to pay a premium for a high value service. “At contract re-negotiation a loyal client always come back and are always prepared to give us the last chance on the final contract price, said Gerlof”

             

            They do what it says on the tin!

             

            Download presentation

            0

            Net Promoter conferences are so often focused on highlighting success, that it was a brave and refreshing change that Arti Ots started off his presentation with the shocking reality that, despite adding NPS to compensation from the outset, Net Promoter scores dropped across the first year of measuring from +1% to -7%.

             

             

            Arti Ots is the Marketing Director at Elion, the top telecoms company in Estonia. To add a little flavour around the company:

            • Elion are the #1 provider of broadband, telephony and IT services
            • They are the world #2 in provision of IPTV
            • With a revenue of €200 million, and 1,300 employees, they belong to the TeliaSonera group of companies

             

            Elion.png

             

            The main driver for implementing their program in 2007 was the increasing cable competition and Elion wanted to focus on providing low price broadband and high quality TV.

             

             

            With implementation came immediate linkage to compensation - including an annual bonus work half-a-months salary for a 5 point jump in NPS across the first year. As mentioned, this didn't happen and no-one got a bonus.

             

             

            Elion quickly realised that there was too much focus on process and not enough on people. Arti and his colleague, who held the COO position, focused on an overall review of both the transactional and relationship elements of their program.

             

             

            This led to a focus on:

            • Awareness
              • Seeing the value chain through the customers' eyes
              • Understanding the key issues
              • Understanding key team level success factors
            • Responsibility
              • Compensation was linked to weekly, monthly and annual targets
              • Quality forms introduced
              • Cross functional work groups to take hold of improvement planning

             

            The results have been exceptional - by moving the focus to a more transactional based approach, Elion have uncovered the key pain points for customers as being Problem Solving and Sales. Despite the rough start, Elion have really learned from the insight and are making great strides in fixing these customer issues. Scores around problem-solving have risen from -12% to +17% and in sales have reached a staggering 30%.

             

            Well done Elion! And thank you, Arti, for sharing the story - all of it!

             

            Download presentation

            0

            Marc Berendes, head of Enterprise Solutions at Abbott Diagnostics in Europe, explained their journey rolling out Net Promoter in a business-to-business setting.

            Abbott.png

            Abbott has 72,000 employees worldwide, with a broad range of healthcare related products from diagnostic instruments to pharmaceuticals. The company started its Net Promoter programme in Germany and the UK and has expanded it to 36 countries within the diagnostic division during the last 2 years, and now is using it globally.

            Marc explained the process for building internal confidence and buy-in around Net Promoter. Getting key executives to buy-in was the first step. “I know my customers,” was often the first reaction. But they were able to overcome this by illustrating the importance of using NPS to motivate change throughout the organization. Each country’s General Manager selected an NPS co-ordinator from their team, and a network across the division was built up over the course of 8 months.

            Then it was time to get to work. They started with a pilot programme focused on the service experience, but they quickly expanded to get a more complete view of the overall customer experience. They also put in place a follow up process for Detractors that engaged front line managers and process leaders. The country co-ordinators also stepped forward to work on systematic improvement opportunities and present to country leadership teams on improvement actions.

            Abbott Diagnostics also found that sharing success stories internally was a key motivator. They built momentum by communicating about small, relatively easy changes that made a meaningful impact on the customer’s experience. For example, they implemented a simple change to their packing materials to make it easier for the customer to open the package. Customers also said that the product shelf-life was too short. But on further investigation, they learned that the real issue was delivering the right amount on a more frequent basis to ensure that products would not expire before the need for use.

            Communicating effectively with customers during times of change was another key learning. When Abbott Diagnostics undertook a sales force reorganization, the first unit to implement it saw a drop in NPS of nearly 30 points. As they followed up, they learned that the real issue was not the organizational changes per se. Those changes were sound and were the right business strategy. The missing piece of the puzzle was communication. Customers were not adequately informed of the changes, and in many cases they had developed trusted relationships with their account contact and were concerned about what might happen next. They took this learning from the first country and used it to implement the reorganization in a more proactive fashion in other markets, with successful results.

            0

            Travelport is a global B2B business services company. They provide transaction processing solutions to connect buyers and sellers of travel.


            Travelport was facing a critical juncture in its history. Recession has hit the travel industry disproportionately, as both businesses and individuals cut back significantly on travel. The lack of business has a very negative effect on employee motivation. Not only are people fearful of their jobs, but it's just sad when business is slow. On top of that, Travelport was bought by a Private Equity company and the ownership change was a shock. Finally, Travelport bought a major US competitor. The deal was perfect from a financial and synergy point of view, but employees were struggling from a cultural view.  One side was a consensus-driven, slower decision-making culture, while the other side was an autocratic, fast decision-making culture. Both sides agreed that they wanted a different culture, but nobody knew how to get there.


            Normally, HR  worries about employee engagement, but the process is slow, and often doesn't get to the root of the issue. In the case of Travelport, it was Elizabeth Harroway, Vice President of Corporate Affairs and Global Employee Communication, who decided to jump in and act. She felt that if Travelport didn't do something to engage its employees quickly, it would hurt the business. Management agreed, but as usual, they created pressure for her to come up with a solution that was cost-efficient, fast, and got results quick.


            Elizabeth, together with Crispin Manners, CEO of ONVA consultants invented an ingenious application of NPS to measure the NPS of Travelport's own employees. After all, when an employee goes to work every day they are buying the promise the company made them when they were hired. Besides, Elizabeth and Crispin wanted to purposefully disrupt the way things were usually done in the company to get people's attention and jolt them out of business-as-usual.  The plan senior management agreed to was simple:

             

            1. Listen to employees and prioritize what they tell us
            2. Engage them, don’t do everything top-down, find out what they know and think we can act on
            3. Create an action plan to do those things


            In 2008 Elizabeth and Crispin ran a trial in one country. The questionnaire had only 6 questions and they got a 53% response rate (much higher than the typical employee engagement survey). Elizabeth and Crispin declined to share the actual score with us but gave us a hint: "It was crap."  Management was alarmed.  But at the same time, the verbatim feedback showed how badly the employees wanted to make changes and improvements in their business...they just hadn't been able to.


            The two biggest surprises for management was not that employees wanted more pay or promotions.  The number one thing they wanted was for management to listen to their ideas for doing business better and act on their feedback. The second surprise was that employees didn't want to be shielded from bad news - they wanted the straight story about the business environment and Travelport's real situation.


            Results


            Since then Travelport has rolled out NPS internally, and now does it on a rolling basis across the functions and they have a 90% response rate. Not surprisingly, their internal NPS has improved dramatically. Employees have a greater understanding of and buy-in to the strategy. Over 60% attended the CEO's Strategy Roadshow. By involving people in the process of change, Travelport created positive internal WOM. People who were involved in process improvements and had a say in it talked to everyone else about it.


            Learning points

             

            Elizabeth and Crispin shared their learning with us:

            • Counsel senior management to look beyond the score to the verbatim feedback. Management sometimes jump to fast conclusions on "scores". Good scores means nothings wrong. Bad scores means our people are no good and we should replace them...it's difficult to accept bad scores are a measure of the employees' experience of the company...as created by the managers. When they see the verbatims, they begin to understand what life is like for their employees.
            • Always be sure to close the loop….just by listening to employees, Travelport's score improved by 31% in only 6 months even though market was getting worse and people were suffering pay freezes and cost-cutting.
            • Turn employees into advisors. When the Managing Director communicated the a dire economic situation out to employees, he signed off with "We’re in a bad situation, if you have any ideas just email me." People loved it, they sent in their ideas, many of which were good and some of which were implemented to postive effect. Travelport also held an "idea storm" online, where everyone could share ideas openly, and rate other people’s ideas.
            • Our employees are smarter than we thought. Employee Advisor Groups leverage wisdom of the masses and come up with better ideas than Focus Groups, which represent the opinions of the few.
            • Employees don’t care about the score, they care about the issue. So don't talk to employees (or customers) about the score, tell them how you're fixing the problems they raised.
            • It's not a bad thing when your own employees are loyal promoters of your business and expert consultants on how to do better!
            • Internal feedback often addressed customer-facing issues. So now Travelport has started doing NPS with customers. They are studying correlations between what employees and customers say

             

            Download presentation

            0

            Encouraging A Creative Approach to Problem-Solving in the Call Centre

             

            Jura Schoeder, EU CS Customer Loyalty Supervisor, EU CS Service Development , eBay International AG

            Jura starts by giving us some key statistics on eBay....apparently you could have bought a town in Texas for over $4 million or if you're quick a women’s handbag...one sells every 3 seconds! (with Lady Thatcher for over $75k).ebay.png

             

            Unlike other companies eBay Customer Support typically has 2 customers...the buyer and the seller and  either is trying to explain eBay's process to one or other or 'police' between the two...tricky.

            So how do you 'close the loop' with these two customers and ensure them that contacting Customer Support is a good experience and not a negative one as results previously found.

            Jura shared their approach from a recent pilot specifically aimed at improving the customer experience for customers at this touchpoint.

             

            The Pilot had a number of key areas:

             

            • agreed to call back time to discuss the customer query
            • a call back 'tracking' sheet with pre-defined areas to populate and cover off during the call back
            • time set aside for agents to review the query and be fully prepared for the call
            • training and support on key messages around eBay policies so explanations are clear and more customer friendly

             

            The results?

             

            Well customers were surprised and delighted to get a call back at the scheduled time...further proof on the obvious notion of delivering on a promise!

             

            By ensuring agents were well prepared in advance they were able to fully respond to the query and in nearly all cases actually resolve the query on the call, increasing 1st time resolution

            As a result of the above NPS on this key touchpoint improved dramatically from a minus to a plus and the approach will now be rolled out further.

             

            Download presentation

            0

            Maersk Line, Gert H.N. Laursen, Head of Customer Intelligence, Centre Marketing

             

            By combining Business Intelligence and Net Promoter, Maersk Line has been using NPS for the past 4 years as:

            1. an overall KPI for more than 16, 000 employees,
            2. a dialogue tool between sales people and customers,
            3. a way to share creative solutions across a decentralized organization

             

            But perhaps most significantly, determining that every uptick in NPS translates to 7% more cargo being shipped, Maersk uses NPS as:

            1. a way to improve internal systems and processes centrally, and
            2. Identify and drive strategic initiatives across 52 global business units.

             

            The most significant change made over the period has been a move to weighted feedback in proportion to the size and quality of containers, therefore allocating a percentage contribution towards NPS by each. The other change has been an increase in survey frequency moving from 3 surveys per year to monthly (with quarterly result publication).

             

            A key lesson learned during the implementation has been the timing of communication around launch. This should be spread across the rollout and all the way up through to the initial measurement, rather than just at launch.

             

            This approach has had a very positive impact on the organization in the following ways:

            1. Moved from “Data” management to “Knowledge” management,
            2. Integration of Voice of the Customer to help design the business,
            3. Development of a learning library and resources to be shared globally,
            4. Calculated relationship between a point improvement in NPS leading to a 7 point increase in container volume.

             

            Overall this has enabled the organization to make far better strategic decisions based on the impact on NPS/ Customer Satisfaction and how this translates to the bottom line.

             

            Download presentation

            0

            The Weir Group PLC, Alan Harrison, Global Lean Champion,

             

            Weir’s mission is a “journey” of excellence and Alan’s advice to the audience is to “Think Happy”, which then translates into Customer Experience, ultimately leading to Customer Delight ... therefore always put yourself in the “mind of the customer”. Adopt a customer mindset.

            Weir aim to deliver customer delight by combining NPS, specific commercial investments and lean improvement programs across their business working on the following key areas:

             

            1. Process improvements are optimized when:
              • Weir understand what customers think about Weir,
              • Systems are integrated and include Lotus Notes and Satmetrix;
              • 6 monthly review cycles focusing on quality and timing of responses;
              • Closed loop process that is operated with urgency, across the organization, driven by county MD’s and has 100% close rate.
            2. People within Weir make the difference by:
              • Adopting a problem solving mindset – how to fix, contain and prevent problems from occurring again,
              • Driven by a core HQ team supported by NPS champions within each country,
              • Correct mix of tools applied with 80% dedicated to soft tools (People & Mindsets) and 20% hard tools (process fixes),
              • Focus on training people in the “Why NPS?” and they will figure out what?, where? & how?  Themselves.

            Weir’s are still on the journey and they have already learnt a number of important lessons, including:

             

            1. Once you ask customers for feedback you must do something about it – they get back to every customer,
            2. Quality of incoming responses is critical to validity of analysis and improvements,
            3. Must be top manager led and championed.

             

            Download presentation

            0

            Shaun Smith, founder of Smith + Co and author of three books on customer experience, joined Simon Groves, head of customer experience and strategy for O2 UK, to discuss the critical link between your brand promise and your customer’s experience.

            Shaun opened the presentation by describing the importance of creating an emotional bond with the customer through the ensemble of your company’s interactions with them. According to Shaun, companies that are successful in creating both a functional AND emotional connection with the customer improve retention considerably.

            smith.png

            Shaun returned to a brand we heard about this morning, First Direct. Shaun stressed that it is absolutely critical to be clear about what you promise. Here’s what the First Direct website says:

            “Most banks are about money, First Direct is about people. We believe banking should fit around you, not us.”

            According to Shaun, First Direct gets a new customer every 5 minutes through referral. In fact, 38% of their business comes to them through word of mouth. This isn’t just about their brand, it’s also about their people. Having employees that are passionate about working at the company is critical. He told a personal story of how a First Direct call centre employee helped him by faxing some extra documents as proof of identity when he needed a retail loan…no hassles, no waiting. When experiences like this reinforce the brand promise, you have a winning recipe.

            Shaun described this as an overall shift in the marketing world from “branding and advertising” to “experience marketing.”

            One First Direct competitor, Barclays, ran an ad campaign that won awards in advertising circles, but it fell mostly on deaf ears by Shaun’s assessment. “A big world needs a big bank” was the tagline. But as Shaun put it, “this just made customers feel small.”

            First Direct, by contrast, asked its customers what they like about First Direct. Customers told them that they love the fact that they can get through any time of the day or night to an enthusiastic customer service agent. Many of these customers who gave feedback agreed to participate in an advertisement. By building their advertisement on these “real experiences,” First Direct not only saved a lot of money on its ad campaign, but also had a guaranteed receptivity to its message, as well as a natural link to the reinforcement they would get through organic word of mouth.                                         

            The O2 Story

             

            Simon Groves from O2 followed with a short history of the O2 brand and customer experience journey.

            O2.png

            When O2 first de-merged from BT as BT Cellnet back in 2001 and 2002, they were on a tough road both in terms of financial performance and customer loyalty. But within 4 years they had turned things around and were purchased by Telefónica for nearly £18 billion. How did they accomplish this?

            O2 has tracked a customer satisfaction index going all the way back to 2001. That also use something similar to NPS to track advocacy, but the early years of their journey were really more about getting satisfaction right to build the foundation for more advocacy over time.

            During the first phase of their programme from 2002 to 2005, satisfaction was lagging competitors. Their shift to a customer-focused strategy all started with intuition and a belief that doing the right thing for the customer would pay back handsomely. Some key executives championed this, and they went through to drive operational improvements and measure step by step. This was effective at that particular point in their history.

            Metrics were starting to move in the right direction, but the market wasn’t standing still. It was becoming tougher to compete. Customers were saying, “there’s no good reason for me to stay with the network I am with,” “nobody is looking after us,” “they’re all as bad as each other.” How could they differentiate from this?

            They developed a customer plan in 2004 in reaction to this feedback. They were determined to invest in the areas that customers valued. They couldn’t just spend more…they had to strip out things that were low value to put money into the right areas.

            They developed a new brand promise that was about putting the customer at the heart of everything they do. Then, they drilled this down to specific plans that would underpin the promise. All the KPIs and measures linked to this, and they tracked it every quarter to reinforce it throughout the company. The plan had 5 points:

            1. Become the customer champion by rewarding loyalty.
            2. Invest in front-line service and sales experience.
            3. Have the best range of devices for target customers.
            4. Engage our people by making O2 a better place to work.
            5. Drive efficiencies to deliver a better experience at lower cost.

            From 2005 to 2006 this strategy moved them into a leading position on their satisfaction measures relative to their biggest competitors. And they reinforced these messages in their advertising, helping to move brand perception in the right direction, too.

            Since this inflection point in 2006, they have worked hard to successfully retain a leading position and have been acquiring new customers faster than their competitors.

            Where is O2 headed now? O2 is now focused on creating more “fans.” They are moving toward building a more emotional connection with their customers. The rallying cry is to “create a million more fans.”

            Ultimately , Simon summed it up this way: our goal is to get more customers that are happier and more loyal. That’s the heart of it according to O2.

            Download presentation

            0

            Christophe De Vusser, partner in Bain & Company’s Brussels office, kicked off the afternoon today with a fresh new angle on why delighting customers can delight investors too.

            Bain.jpg

            He gave us a view of how to use NPS to accelerate sales, in the context of private equity firms post-acquisition. The first half of his talk was a great introduction to the mindset of private-equity investors, and how NPS can fit as a strategic tool to build value based on operating fundamentals.

            Christophe described the 3 main ways for private equity firms to make money from their investments.

            1. Increasing leverage
            2. Improving P to E multiples
            3. Increasing earnings (either through top line growth, margin improvement, working capital management, or a combination of these)

            For the past several years, while money was cheap, most private equity firms were making money using leverage and expansion of P to E multiples. But in the current environment, with debt being harder to come by and multiples being lower, this has focused investors instead back on the core business. Today, they need to demonstrate increased operating value based on the underlying business fundamentals.

            This third strategy is not easy to accomplish, but it is now the critical driver for making a return on investments in private equity. Cutting costs is tempting, but this doesn’t typically give the level of returns that investors are looking for. The key, instead, is to demonstrate sustained relative market share growth, and to demonstrate that you have a repeatable growth model to sustain this.

            NPS is an excellent tool to accomplish this according to Christophe. It usually starts by demonstrating how a change in NPS (by shifting more customers into the Promoter category), will link to underlying growth, share of wallet, and market share.

            Christophe showed several examples of companies that have made this link between NPS and market share growth.  One example he gave was of a company that was losing market share relative to its main competitor each year. By implementing an NPS turnaround programme the trend shifted back in favor of the company. They did this by understanding the criticality of showroom design in driving NPS and sales volume. Based on this insight, they invested in re-vamping over 1000 showrooms around the country, allowing them to turn around market share growth relative to their main competitor.

            NPS also helps companies decide where to invest internally to get the improvements. If a company wants to invest in sales acceleration, is the right answer to add sales people, to expand advertising, or to take a different approach? What will drive the fastest improvement in NPS and business outcomes?

            Christophe showed a compelling analysis of “visit frequency” in a sales environment. They looked at how often sales people had visited each customer and found a very interesting relationship between frequency of visits and the customer’s NPS. Not surprisingly, the salespeople who did not visit got customer NPS values of -35% on average. At one visit this increased to 20% NPS, and with 4 visits the NPS increased further to 56%. Interestingly, when they reached 9 visits, the NPS dropped back to 38%. This insight helped them understand how much additional investment was needed in sales capacity, but also, how to balance frequency of visit and account loads across the sales team.

            Knowing the drivers of NPS is key to accomplishing these turnarounds in performance. Private equity investors love this because it is about re-allocating spending within the company instead of having to make additional investments. Christophe stressed the importance of analyzing drivers, not in a vacuum, but relative to competitors.

            How do these changes relate to investor returns? As Christophe explained, these fundamental trends in customer buying patterns and relative market position change the assumptions future owners will make when valuing the company. And there’s nothing like that to put a smile on an investor’s face.

            Thank you, Christophe, for this fresh new angle on NPS economics.

            0

            Shaun Smith, Founder, Smith+co and author of Managing the Customer Experience - Turning Customers into Advocates

             

            shaun smith.png


            Define delight – Then get it right
            Changing market -  Product + Services +Emotional Experience
            e.g. Apple -  iPod + iTunes + Apple experience (in store, packaging, online)


            Value (delight) = (Product Quality + Service Quality) / (Price + Hassle)


            1. Customer insight
            2. Drive organisational behaviour
            3. Experience design is very important – the people are your brand
            4. External communications
            5. Internal communications
            6. Measurement and feedback – NPS live

             

            Simon Groves, Head of Customer Experience and Strategy, Marketing, O2 UK
            From 02/02/2002 to today

             

            O2_2.png


            1. Building the foundations – fresh new brand, new start, sorting out the networks, drive customer experience at the centre of everything they did, clear measures of success


            2. Disruptive opportunity to reward and look after customers, customer champion, differentiated propositions & experience, bran promise = “customers at the heart of everything we do”, “Our customer plan”


            3. Sustain and maintain – more of the same but move up on experience e.g. iPhone, O2 sponsorship, O2 arena, new markets (e.g. broadband), turning customers into fans


            Top lessons from O2
            1. Isn’t a single correct way of doing it
            2. Integrate through business, brand & marketing plans
            3. Start with customer insight
            4. Challenge to invest in what customers really value
            5. Bold top-down leadership
            6. Clear brand & customer promise
            7. Engage and excite people
            8. Dramatize the difference through marketing & propositions
            9. So much more than fixing stuff
            10. the hardest thing of all – to keep on challenging

             

            Download presentation

             

            0

            Define Delight - Then Get It Right

             

            Shaun is a great presenter, very energised and engaging - and he won maximum brownie points by promising the audience that he wouldn't keep them from the drinks reception for too long!

             

            Shaun kicked off by looking at how the market has changed in terms of it's sophistication. What once were differentiators are now simply tickets to the party. In order to improve retention and growth, functional performance is not enough. You need to create an emotional connection.

             

            smith.png

             

            To understand how to define delight, Shaun introduced the following equation:

             

            Value = (Product Quality + Service Quality) / (Price and Hassle) - delighting customers means that you have to go above and beyond customer expectations.

             

            So be very careful with the way in which you communicate your brand promise. To live up to customer expectation and go beyond it, you need to ensure that your customer experience at every touchpoint delivers on the brand promise; design with care!

             

            Remember though, that customer experience depends on your people - your people are your brand. Shaun mentioned that from research done on correlations between Employee NPS and Customer NPS - this reaches as high as 85%. Internal communication is key.

             

            As is external communication. Marketing messages need to change - there's too much noise out there and consumers are switching off. Above the line marketing could soon be a thing of the past - don't we need more experience marketing?

             

            Experience marketing means that you know what your customers are doing and saying and you are communicating with them in a way that makes most sense to them.

             

            The best companies are doing all of this - they often set high expectations, but continue to deliver against and above them. And guess who the examples included? Apple, First Direct, Virgin Atlantic, Zapos...

             

            And O2 - time for Simon to take over!

             

            O2_2.png

             

            O2 have put customer experience into the marketing department - because it's all a part of living the brand. Which probably explains why O2 are the leading mobile operators in the UK.

             

            Upon de-merge from BT Cellnet, O2 focused on:

            • 2002-2005: Building foundations
              • A fresh start and new opportunity
              • A desire to deliver the best customer experience
              • Focus on the basics
              • Have formal governance of a distinct program to measure customer experience
              • Adopt clear success measures

             

            Having achieved success in the first set of goals:

            • 2005-2006: Breaking through
              • There was realisation that customers were being attracted but were not staying - there was nothing different being offered
              • They saw the opportunity for disruptive change
                • Challenge the customer perception
                • Change the investment in the industry to what counts to customers
                • Change the operational patterns internally
                • Put customers at the heart of what O2 do

             

            And this has driven the customer promise and the customer plan:

            • 2006 onwards: Sustained leadership
              • Reward loyalty
              • Invest in the front line and sales experience
              • Best products for the right target markets
              • Engage employees
              • Embrace efficiencies

             

            And it has worked - brand perceptions of O2 outstrip the other main operators, and have been the only operator to grow in a difficult economic environment. O2 have created the emotional link with their customers and are fulfilling on the brand promise.

             

            They defined delight - and do seem to be getting it right

             

            Download presentation

            0

            So the question that Christophe is trying to answer is, once you've bought a company - how do you ensure you get ongoing value from the investment? Or in other words, and to use Christophe's golfing analogy - how do you become Ben Hogan or Arnold Palmer with repeatable, attractive performance over time?

             

            bain2.png

             

            The research done comes from a wide number of industry areas, B2B, B2B2C, global data and was focused around 3 key themes

            • What are the drivers behind returns for PEG funds?
            • Can you prove the link between NPS and these drivers?
            • And if so - how do you get started?

             

            The best private equity companies do not just go into the acquired company and strip out resources or simply cut costs. What they try to do is:

            • Leverage the assets - increase the equity stake
            • Multiple expansion - improve value from purchase to exit point
            • Increase in operating value - EBITDA

             

            But the world has fundamentally changed. It's harder to get investment funding, and difficult to focus on expansion. So the critical driver becomes increasing the operating value. Getting value is harder, cutting costs won't achieve it.

             

            Over the years, Bain have built up factual proof points that NPS does link to the drivers behind returns for PEG funds that focus on Growth, Share-of-Wallet and Market Share. Using examples from the Private Equity world, Christophe clearly demonstrated that higher regional NPS scores led to significantly increased sales and that Promoters spend a higher Share of Wallet, and poor customer experience provides advantages to your competitors.

             

            But by making the right decisions and using NPS as one of the critical drivers, a PEG could realise a 94% return on equity across 2 years!

             

            So how to implement NPS?

            • Use NPS during the due diligence phase
            • Use NPS post acquisition to driver longer term value and optimize investments

             

            The program will then drive insight and action for key functional areas and business themes including:

            • Innovation
            • Relative competitive performance
            • Marketing
            • Sales Process
            • Correct business definition

             

            And this will drive the Ultimate goal: creating a repeatable and selling operating model.

             

            Be a Ben Hogan or an Arnold Palmer!

            0

            Bettina Schmidt-Smylla Head of Market Development + Marketing

             


            Bettina shared how the company’s strategy of complementing 'best in class' core business with a world-class customer experience, underpinned by a strong NPS Programme is progressing. This is an interesting implementation with many organisational challenges, including a complex matrix structure, global rollout and convincing top management within a 150 year old establishment to go for it.The results from the initial pilot in North America have delivered real return and increased sales in the region, helping to establish presence for the programme globally. Betina has spent a large part of her tile selling NPS within Bühler. In summary their journey since 2008 has taught them how NPS can:

             

            1.Help identify what matters most to Buhler's customers,


            2.Revealed new opportunities to deliver customer delight, and


            3.Delivered corporate growth, by expanding customer relationships.

             

            Download presentation

            0

            Acting on NPS feedback is only worthwhile if you get an eventual return  on your investment.  Naomi Kasolowsky, Senior Director of Business Consulting at Satmetrix EMEA, spoke to a full house, sharing her expertise on how to make NPS results actionable.

            1. Think about the program ROI before you even get started - create clear program objectives linked to business objectives.  Measure the actual situation to have a baseline metric to compare against.
            2. Create a hypothesis about what drives customer loyalty and measure against it. What makes customers really angry?  What makes customers really happy?
            3. Start by measuring what matters MOST. Don't measure everything!
              Prioritize improvement based on what really drives loyalty.  Invest in the right fixes, the ones that have the biggest impact for your customers and for your business.
            4. Link NPS to business metrics:  Customer retention, Revenue growth, Word of mouth, Customer repurchase, Customer lifetime value, Customer cross-sell, Cost efficiency.
              Include NPS in the top 5 metrics of your organization.  Organizations that do this tend to have employees who are more customer-oriented, and products and services that are a better fit with their customers' wants and needs.
            5. Merge NPS with your balanced scorecard – how does NPS contribute at each level? For example, it can be measured from behaviour at individual touchpionts to customer experience to brand loyalty to financial measures such as reduced churn.
            6. Differentiate between hygiene factors and delight factors.  Hygiene factors are things you have to get right to be in the game.  If the company fails on a hygiene factor, that can create a "penalty to loyalty". At first companies have to get the important hygiene factors right...stop angering customers.  Next, you need to start thinking about creating delight and getting a reward to loyalty. This is what gets 9s and 10s and turns your customers into loyal fans of your company.  You only need a certain score on hygiene factors to avoid penalties…doing even better does not translate to increased loyalty.  Focus on those items where delight highly correlates with increased loyalty.
            7. To identify hygiene vs delight factors, look into your verbatim comments.  What do promoters talk about?  Those are your delight factors.  What do detractors talk about?  Those are your hygiene factors.
              Think about al of this before the feedback starts coming in, not after!
            8. Analyze against your hypothesis, measure against your baseline metric to compare to to see if you improved.
            9. Don't stop there, keep measuring and improving as you go!

             

            Download presentation

            0

            Making Happy Happen, is ultimately common sense, says Tim Kaner. With positive customers, you drive revenue growth and profit. And Net Promoter is a key tool to making this happen.

             

            sony.png

             

            Sony's first ever product, providing technology to meet customer needs, was a rice cooker. This is a perfect example of the concept "necessity is the mother of all invention" and Sony absolutely aim to understand what people want, and why.

             

            The Net Promoter program at Sony started with the "Customer Viewpoint" and the importance of "Learning to Listen". Embedding these concepts into the organisation is the most important step to developing a successful program. Without engagement from the business, at all levels, then the program would simply be paying lip service to the idea of customer-centricity.

             

            The insight from the program has been heavily driven from the customer's perception of the customer corridor:

             

            • I want
            • I choose
            • I buy first time
            • I use
            • I need help
            • I need a repair
            • I buy again

             

            By viewing the data by product, by country, by function - but with the overlay of the customer perception, the central NPS team have helped to ensure that the program does get embedded.

             

            As Tim says, if you are marketing TVs in Latvia - then that's the feedback in which you are interested. And that's how Sony have driven the engagement in the organisation. Consensus-driven, the Sony culture has been led by leaders walking the walk, not just talking the talk. And by adding in the KPI of customer centricity into compensation plans, they've helped answer the employee question of "what's in it for me?"

             

            One of Tim's key pieces of advice was to ensure that you are clear about what you want people to do. Keep it simple "KIS" is key to engaging employees in taking action. And make sure the competitive angle is about self improvement.

             

            To be successful, use the right tools and resources, listen and act on what the customers say and align with your existing approaches to customer management.

             

            Download presentation

            0

            Frank McCusker, Director Client Management for Satmetrix EMEA, set us straight on the basics of running a successful NPS program. If NPS isn’t built on a solid foundation, it usually doesn’t lead to the desired results.

             

            frank.png


            The first foundation is Program Design. 

            • Be clear about the results you want out of improving your customer loyalty. Typically, customer retention, more repurchases, and generating customer referrals. 
            • Be clear about the kinds of actions you are going to take to get those results – which are incremental operational improvements, and which are more radical strategic improvements.
            • What infrastructure do you need to support customer centricity?  Do you lack processes to align internal activities to customer value creation, or do your existing processes force people to focus inward and ignore the customer?  Do your ICT systems support the customer?  Processes and tools are only enablers, but having the right ones makes the overall goal of creating net promoters much easier.
            • Does your executive team fully understand and support NPS?  Is it fully integrated into your strategy and operations, across functions or is it a bolt-on activity that just sits in one department?  This seems like common sense, but it’s easy for organizations to compartmentalize NPS …and then they think it doesn’t work because no improvements happen in the organization and there is no change in customer perceptions, or the bottom line….
            • And finally you can worry about the questionnaire design.  Short and relevant, reflecting  the key pain points of your key stakeholders.   Typically questionnaires are designed by committee and they end up to be too long and redundant.  Here is the acid test for every question:  what action can you take internally based on the answers to that question?  If you’re not going to act on it, don’t ask it.  

             

            The second foundation is Sample Strategy.
            • Get the right customers.  Don’t just go and ask finance or sales which are the right customers.  Dig everywhere and get a healthy sample from these segments:  end users, influencers, decision-makers. Again the acid test for whether a stakeholder or customer should be included in the sample:  Are you willing to make business decisions based on the data that comes from this group? 
            • B2C companies should take a representative sample of their targeted segments and extrapolate from there.
            • B2B companies, you need to measure every single one of your key clients who drive 80% of your sales and profitability….because each one matters.
            • Timing is also important – measuring at a logical time for the customer, but also at a time when you are prepared to quickly analyse the data, get back to customers and start acting on the data.

             

            The third foundation is closing the loop.
            • You have to follow up with your customers.  Decide which situations require which kind of follow-up.
            • Who internally should conduct the follow-up?  Ideally, someone the customers believe has the power to make changes.
            • When will the follow-up be done?  (Best practice - within 48 hours if practical…whatever, stick to it and monitor it and make sure people do it).
            • What should happen afterward?  How should it be handled?  For example, will you include in your annual report a section about customer feedback and what you’re doing to address it?

             

            Download presentation

            0

            Richard tried to shake us from our corporate slumber by challenging us to exceed customer expectations in some unique way.

            owen.png

            Entire industries tend to do things a certain way out of inertia, and find it hard to break out of these standard operating procedures. Why is that? Is it feasible to build massive competitive advantage by doing things differently? Richard suggests that companies can’t create this "game changing" type of innovation from day-to-day executional improvements based on customer feedback. It's a broader strategy about transforming what customers expect in your industry.

            As we are in London, Richard used a London Tube analogy…how can you “mind the gap” between what customers expect, and what they want. Most companies operate around the level of expectation. Very few successfully get to what customers want, and even fewer figure out how to exceed that high bar.

            Richard illustrated this with some examples.

            He started by describing several companies that had changed their industry by creating “great innovations” in customer experience to exceed not only what customers expect, but what they can envision on their own as “something I want.”

            But I thought the most intriguing example he offered was that of RyanAir. RyanAir CEO Michael O’Leary is, on the one hand, the poster child for bad customer experience. Richard quoted one of his extreme statements about the airline’s cancellation policy:

            “Say my Granny fell ill. What part of ‘no refund’ don’t you understand?”

            Richard asked, “Is he really the villain of customer experience?” Expectations can be shifted not only upward based on innovations in service or product, but downward by lowering price.  Richard argued that RyanAir has been able to exceed expectations in a very unconventional way…by setting the expectations SO LOW based on rock bottom prices that customers are happy to get there safely and at a good value.

            Then Richard turned to the UK banking industry. Most UK banks have negative Net Promoter Scores. It’s to the point where the government is discussing how they might legislate improved customer service. Has it really come to this? There are some notable exceptions, including First Direct, which has an NPS in the range of 40%, considerably higher than most other major UK banks. What is it that a company like First Direct can get right that is so difficult for much of this industry?

            What’s the “industry standard” in your business? Richard gave these parting thoughts on how you might break away from the pack:

            1. Understand your existing “zone of tolerance” and develop ideas outside of it.
            2. Avoid Standard Operating Procedures that are based on industry practice, and instead focus on customer experience as a guide.
            3. Think like an entrepreneur trying to attack and remake your industry through experience innovation.

            Download presentation

            0

            Wow … what a warm-up act …

             

            Richard at his usual best quoting great examples from leading brands like Dell, eBay, Amazon, Wal-Mart and Avon … who were disruptive to their industries through their execution of the unexpected … give the customers what they want, and a little more … exceed their expectations.

             

            We need to understand the difference between expectations and wants by "minding the gap", we need to drive our organisations to deliver on customer wants the domain of real "promoters" simply meeting expectations equates to "passives". In general, breakout companies like those above seem to find a way to create radically different customer experiences through innovation but sometimes the aggressive use low price to lower the expectations so dramatically creates promoters as an example Ryan Air was quoted … sadly this is not good news for customers who are then locked into such suppliers but beware of legislation which might dictate minimum levels of customer experience.

             

            Three take aways from Richard

             

            1. Understand your existing “zone of tolerance” and develop ideas outside it

            2. Focus on SOP’s that are defined around the industry practice, not good for customer experience

            3.Think like an entrepreneur tying to attack and remake your industry through experience innovation

            0

            All Belron does is replace broken glass on vehicles. And they do it more than 10 million times a year -once every 3 seconds. We heard from Gary Lubner, CEO of the world’s largest vehicle glass replacement company, about their Customer Delight Acceleration Programme and how NPS fits with that framework.

            Gary Lubner.png

            Belron operates in more than 30 countries worldwide, under well known national brands such as Carglass, AutoGlass, SafeLite, and many others. More than 25,000 employees, including thousands of front-line technicians, an on the go every day at the behest of consumers and their insurance companies.

            Replacing a windscreen or a side window, or some other piece of glass on a car is not a simple matter. The company has to start by identifying the right piece of glass. Gary gave one example of a new Mercedes that has 84 different pieces of glass. And that’s just one brand, one particular car! Beyond that, they must get the technician to the right place to do the work, then accurately handle billing coordinating payments from the insurance company and the consumer.

            How does Belron get this complicated service right time and again? By having a singular focus on doing this specific type of work, and by focusing on service excellence.

            When Gary asked how many of us had had a windscreen replaced in the past 5 years, I was shocked by the number of hands that went up. It looked like more than 50 percent of the audience! Are we just an unlucky bunch? Not really. Gary next asked how many had had a replacement twice or three times. Only 3 hands remained up when he got to 3 purchases over a 5 year period.

            Why does a company that knows you probably won’t need the service again for several years bother focusing so passionately on customer service excellence? Why not just drive the costs down??

            • Most of their business is done in partnership with insurance companies. For the insurers, they are dealing with the policyholders thousands of times each day, not just once every several years.
            • Secondly, customers talk. Having your glass break is stressful and unplanned, so people talk about the service, both when it’s great, and when it is poor. They share this with their friends and family, and that’s why Belron uses NPS as their measure of service outcomes.
            • Their company values are also a critical reason. They want all of their employees to be committed to delivering great service time and again.
            • But ultimately, they make this investment because it helps them make money and grow the business.

            The company’s Customer Delight Acceleration Programme has 3 key parts: the NPS programme, their “Smile” programme which includes both training and recognition, and service recovery to effectively respond when things go wrong.

            They chose NPS globally as their measure of customer delight after being introduced to it by one of their business units. Why NPS? Gary likes the fact that it’s a consistent measure globally, it is simple to understand for all of their employees, and it gives and accurate picture of the voice of the customer enabling deep insights for the business.

            They contact 50,000 customers per week in 17 languages, and provide the feedback weekly to all of their teams worldwide, down to the level of the individual technician. If you go into any branch, you will see their NPS scores up on the walls. It has created a “buzz” within the company. By reviewing the verbatims, each technician knows exactly why they are doing well or not. The verbatim also allows both the front line technician and their managers to share feedback with the call centre or billing group if that was the source of their reaction.

            Gary showed a video of employees form their Manchester region, describing how NPS has helped them be effective in their daily work. One employee commented on his learnings from speaking with the customers who score 7 or 8. While the customer may think the service is quite good, there are sometimes small things that they could do to get a 9 or a 10. This small additional insight is the difference between good and great service. And Belron has its employees focused on uncovering this higher level of service.

            Belron reinforces this through employee recognition. They set up the Belron Exceptional Customer Service Award. To be nominated for it, you have to first win the top prize in your own country. He told the story of one winner, Grant Hunter, who is a technician in Christchurch in New Zealand. In his first 6 months with the company, they got 48 customer letters praising him, and he had an NPS score of 97%.

            But no service can be perfect. That’s why they also focus on service recovery. How do they deal with Detractors when something has gone wrong? This is an area where they have transformed results in the past couple of years. Gary described a turnaround in their way of thinking about service recovery, and their NPS for customers who had a complaint. At the beginning, it was mostly about controlling costs and they had too many people involved in the process to make it customer friendly. They have completely turned this around. They now speak in a different way, they assume the customer is always right to create an environment of trust, and they have one owner to ensure this goes right. They have moved their NPS for customers who had a complaint from 19 to 67%.

            Overall, Belron’s NPS across the more than 20 countries where they have implemented it is at 72%. They don’t compare country to country, but have a huge focus on improving and comparing operations within each country, which has allowed them to improve scores significantly over the last 2 years since they started using NPS.

            The company’s service excellence strategy is paying off. In a market that is growing between 1% and 1.5% per year, Belron has achieved compound annual growth of 12%, reaching over 2.5 billion Euros in revenue in 2009. Gary attributes this gain in market share to the fact that they are able to delight their customers. With those results, I’d be delighted too!

            Download presentation

            0

            Welcome to our 8th Net Promoter conference, and to the conference blog. It has been a pleasure for me to host these events since their inception in January 2007, when we held our first conference in New York.

             

            Net Promoter.jpg

             

            The theme of that first conference was about getting "Beyond the Score." One of the compelling points of NPS is, in fact, the score itself. But the real opportunity for companies is to understand what they can do differently to improve this key indicator: both by reducing the number of Detractors in their business mix, and by moving Passives to make them Promoters of your business.

             

            The creation of more Promoters is the theme of this year's conference. How do customers in a wide range of industries translate this idea of "delighting the customers" into practical innovations that exceed what customers expect. We will find out more about this over the next two days.

             

            John Abraham

            General Manager, Net Promoter Programs

            Satmetrix

            0

            Goodbye Dell Hell!

             

            18 months ago was the point that Dell really moved away from servicing customers and started to focus on delighting customers. The concept that drives this is the demand from customers that Dell "deliver technology solutions that enable people everywhere to grow and thrive." Not products - but solutions.

             

            In moving to delighting customers, Dell chose to use the Net Promoter metric and implement the discipline of ongoing improvement that is monitored by the central team but driven by the business. Net Promoter is simple and effective and today, the Net Promoter scores achieved by Dell are reported side by side with the share price.

             

            The program at Dell is very encompassing. Covering not just B2C but also all of the B2B segments, the feedback gathered is very focused on the customer journey and the key touchpoints that impact customers. And this is not the internal view of the journey, but an external, customer perception of the experience.

             

            Side by side with NPS, the central Customer Experience team have introduced the concept of a Net Satisfaction score. By drawing correlations between the scores, this actually helps the organisation to focus on the specific pain points that drive a customer towards a Detractor status. It enables the organisation to really focus on the areas that need most improvement.

             

            Direct feedback from customers has driven the company towards providing the right choices to customers, to simplifying the products and to eliminating cost and complexity. This has been embraced across the organisation. Although 70% of the impact on NPS is driven by Product and Support, the other functions within the company are also cognisant of the need to improve. Change and improvement programs have been adopted throughout the Dell organisation, including in:

             

            • Design
            • Planning and Pricing
            • Purchase and Delivery
            • Service and Support

             

            "Consumerization" is the key. Focusing on the consumer requirements, how they interact - and this includes a large focus on social media - is central to the transformation happening at Dell. Using a great example from the tech4mommies.com website, Gary was able to demonstrate how the organisation is working to turn detractors into promoters.

             

            And it is working. The efforts led by Gary's team, with the direct support of the CEO, Michael Dell, are really changing the way in which the business sees their customers. One customer - one interaction - one promoter. And it's not just the direct business that's impacted. Dell give back to the world. From developing technical solutions for emerging countries, building learning classrooms in China and providing Breast Cancer detection support in the US - Dell is truly transformational.