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Net Promoter Community > European Conference Blog 2010 > Authors > karenlindquist
 

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

 

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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!

 

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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.

 

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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?

 

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European Conference Blog 2010

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