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Net Promoter Community > Miami Conference Blog 2008 > Tags > ge
 

Miami Conference Blog 2008

2 Posts tagged with the ge tag

Vivian Blade, a Master Black Belt, shared her experiences in using NPS to drive loyalty at GE. Jeff Immelt, GE's CEO, is driving NPS from the top down. It makes life a lot easier in terms of driving the program. A viable business needs organic growth... and NPS supports this by showing if you are growing your base of loyal customers. GE thinks of NPS and Lean Six Sigma complementary to driving growth.

 

NPS works across B2C and B2B as well as to provide product and process insights. Key point... NPS is not about managing the score... it IS about how we improve customers' experiences. GE uses a simple framework for listening, acting and measuring in order to drive growth.

 

Listen for the survey process: Vivian thinks segmentation is very key. This segmentation needs to line up to corporate objectives. It is very important to do root cause analysis and involve the leaders in those call backs. You will get important experience cues and product cues from the feedback. From that, you will know what defects you will need to eliminate for. But more, you will get some pointers on the *wow* factor or what will differentiate you.

 

Act: Using Lean Sigma, you have two buckets.

 

1) Tactical — action plan by customer 3-6 month followup
2) Strategic — systemic fixes... use Lean to improve customer facing processes.

 

Lean Six Sigma can be used in any function...if there is an output; there is a process, so Lean Six Sigma will work!

 

Lean attacks waste by reducing cycle time. Six Sigma attacks defect reduction and variation. Some analysis of process time shows that about 95% of time in a process is NON-value add! So, lots of waste in what we do! Vivian showed eight categories of waste... some were surprising, such as unrealized creativity. Vivian mentioned the previous session's discussion of Adaptive Design at St Joseph's Hospital. This embodies many of Lean's ideas... focus on the process and eliminate waste, and start from the customer (or patient) in.

 

Vivian showed how GE Money used Lean to figure out why it took a dealer 63 days to transact with GE! They got the process down to 1 day by figuring out what was causing the delays and completely revamping everything in the process.

 

Measure: It is important to measure the results of your actions against key customer metrics.

 

So the key message is look at your customers' experiences and moments of truth and figure out what you need to do to meet and exceed their expectations. It is also key to get this into the DNA of a company to make it sustainable. This requires accountability and making sure you reward the right behavior. I thought this was a really interesting session as it showed real-life applications of both NPS and Lean principles.

 

Coming from a company that does not have a Six Sigma practice, I wondered how at least it might be possible to use the Lean method to look at our processes and eliminate waste. This might be the best way to truly improve our customers' experiences for the long haul.

 

Click here to download the presentation.

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Vivian Hairston Blade, Master Black Belt -- Marketing at GE Consumer & Industrial, gave a lively presentation on the GE experience with Net Promoter and leveraging Six Sigma and LEAN to improve the customer experience. In summary, GE leverages customer insights to identify unnecessary and non-value add processes and touchpoint experiences, and applies LEAN to attack the "waste" -- which results in improvements to internal processes and customer loyalty.

 

Vivian kicked things off by providing an overview of GE's commitment to NPS as an enterprise initiative. NPS is central to their objective of promoting organic growth, and it is the discipline used in both B2B and B2C business units. As a short video demonstrated, NPS "makes GE listen to customer cues" to identify where change is needed, and business units strive to build promoters and hear positive testimonials from their customer base. At GE, the focus is not on managing to a score, but rather to continuously improve the experience.

 

Vivian introduced GE's simple and straightforward "listen, act and measure" framework for customer experience management.

 

"Listen" entails

  • Capturing both "experience" and "expectation" attributes around the brand and core product performance
  • Identifying key differentiating aspects of the experience and make changes that really WOW the customer
  • Follow up: close the loop with customers by acknowledging their feedback and listening for clues to root causes
  • Segment customers -- understand how they differ in their business models and interactions, and ensure these segments are included in your NPS analysis

 

"Act" includes:

  • Taking both tactical and strategic action: tactical includes critical feedback that you need to close loop with customer quickly; while strategic involves identifying "what's broken" and prioritizing change
  • Apply LEAN Six sigma to enable continuous improvement.  Through LEAN, you identify unnecessary and non-value add activities, and remove the waste! Focusing only on what truly impacts the customer

 

A short video provided an example of LEAN in action: for GE Money, the process for enrolling new dealers previously took 63 days! An analysis of the process showed numerous inefficiencies, such as paper based processes and manual hand offs, and only 2 ¾ hours of actual value add work involved! The enrollment process was a drag on revenue and a source of frustration for dealers.  GE leveraged its Voice of Customer data to make dramatic improvements. GE automates the process, including online forms and even redesigning the office layout of the applications department. They also improved the usability of their dealer set up kit, which helped get new dealers up and running faster.

 

Not only is the experience better, but speeding up enrollments increased transactions (sales) by over 20%.

 

"Measure" includes capturing the customer-facing metrics that matter to help GE "realize the growth." Customer metrics include NPS, quality, transaction time, etc. By identifying the key moments of truth in the customer lifecycle, cost to serve goes down, referrals go up, as well as improved sales, referrals and repeat purchases. This was illustrated in a closing video showing GE Commercial and Industrial leveraging LEAN to map out current processes in order to identify and attack the waste.

 

Click here to download the presentation.

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