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Net Promoter Community > Net Promoter Day Paris Blog 2008 > Tags > benchmark
 

Net Promoter Day Paris Blog 2008

2 Posts tagged with the benchmark tag

Arnaud Pochebonne — Weber Shandwick

 

Arnaud gave us a fresh view of NPS, from the standpoint of public relations and PR. How does advocacy fit in with NPS when it comes to marketing and PR strategy?

 

Not that many years ago, the PR profession really thought about word-of-mouth in a hierarchical sense. Strategies were focused on the opinion leaders in a space, with the idea that this would trickle down through various press and communication channels to the general public. But this top-down model has basically been turned "upside down"...or at least sideways! Now, you can find consumers with lots of influence almost anywhere in the pyramid.

 

He used a new term for me in French called "info-consommateur"... which is his translation for the word "advocate." Evidently, advocate doesn't really have a direct translation into French. These advocates can have a bigger impact than ever, by sharing their opinions and stories online which basically amplifies their voice...and keep in mind that they can be promoters or detractors of your brand!

 

He also discussed a study they conducted with 4000 European consumers, covering NPS and word of mouth in 4 countries: UK, Germany, Spain, and Italy. The study included 5 different sectors: TV, cellular phones, personal PCs, autos, and liquor brands. What they noticed is that within the population of promoters, about 60% of these consumers are actively involved in recommending.

 

Let's stop for a second here, because I get this question a lot... Do all promoters really "promote" and spread the word for you? Well, they certainly are a lot more likely to exhibit these behaviors than passives or detractors. But as Arnaud points out, Net Promoter is based on understanding someone's likelihood of recommending. It's slightly different from asking whether a person has actually made a recommendation. So you need to create those promoters first, then you can try to activate as many of them as practical.

 

So what can you do to help a consumer "promote" your brand? One key point they found in their research is that the more you inform and educate your customer, the more likely the will be to actively share information with others. So if you're not sure about where to start to "activate" promoters... think about educating them.

 

He also showed some very interesting data linking NPS to whether or not the consumer had been "positively surprised." What they found was that NPS was very much correlated with this "customer delight" experience. And he stressed how critical it is to align marketing and advertising messages with actual experience design and delivery. When these things are in alignment, then the level of engagement and brand attachment increases, and word-of-mouth from the consumer serves to amplify your message and, ultimately, your business growth.

 

And yes, as I mentioned this morning, he told us more about Nespresso, which is his client. Check out my notes from earlier in the day if you want to find out a bit about the Nespresso WOM that was going on during our Net Promoter Day in Paris!

 

To summarize, if the old marketing and PR model was focused on Experts and Opinion Leaders, the new model is focused also on Social Networks as well as Family and Friends. Hierarchy in PR strategy is a thing of the past. Thanks, Arnaud.

 

Click here to download the presentation.

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Marc Annè -- Orange Business Services

 

Orange Business Services offered an excellent B2B case study to balance out the day. OBS is one of the world's largest B2B telecom companies with a network covering 220 countries and territories, and customer service centers in 166 countries. If you are from Europe, you probably know of Orange as either a consumer or a business telecom provider.

 

When Marc started to describe the complexity and size of their business, it was obvious that they had really started cracking the code on using customer feedback in a B2B setting. He described the difficulties they had 6 years ago when they started their customer experience journey...and how this has changed into a more streamlined focus through their "Outstanding Customer Experience" program. It has 4 big focus areas:

 

1. Transforming the company around customer "pain points" as well as pushing the envelope on "differentiation factors."
2. A centralized and coordinated client approach, with priorities set quarterly across the organization.
3. Pragmatic prioritization, based on understanding key levers.
4. And linking to operational KPIs that underlie the outcomes they want to achieve.

 

Next, Marc described how they have integrated NPS within their complex B2B environment. They approach Net Promoter as a discipline, and do consider the importance of promoters and detractors in strategic account planning. But in addition to the likelihood of recommendation, they also track 3 other important relationship factors within their customer loyalty index (CLI), including repurchase intention, whether the customer would choose them again, and overall satisfaction.

 

What they have found in using the CLI for many years (actually, OBS was working with Satmetrix using the CLI before Net Promoter existed!), is that 40-45% of the index is influenced by issues related to brand image. But the rest of the index is basically controlled by the direct interactions they have with their clients. And they have made great strides in this area, as represented by their leading position in recent third-party benchmarks published for telecom companies in Europe.

 

So what happens deep within the company to get account teams to engage with customers and make sure that they are closing the loop effectively? It all starts and ends with direct customer conversations. They communicate directly to the client the role of the feedback survey in their business process. Then they solicit the feedback electronically, review it internally, make individual account plans and take these into 1:1 client meetings to discuss how they can move the relationship forward. And it's a true dialogue...often, these follow up meetings result in new ideas and revisions to account plans to ensure that the feedback was heard correctly and to spur account level action plans.

 

Next Marc shared a great with us. Great for us...but obviously not something that was fun internally! They had a major customer, and they thought that everything was looking good. But suddenly, they lost this major account to a competitor. What was up? It turned out that the account teams had not included all of the potential decision makers in the feedback process. So when the buying decision moved to a new group, they were taken by surprise. This issue is HUGE in the B2B setting. And it's all about relationships and data quality. Did you ever wonder what is going on with non-responders? Well, guess what... it's not just the non-responders that can get you. It might be people that aren't even on your contact list! This highlighted for them the importance of having account teams get back to basics, and map out everything they know about the client organization and potential people they should be in contact with, not just via the survey, but in the day-to-day interactions with the client.

 

Thanks, Marc, for reminding us that a customer feedback survey is just one way that we need to communicate with our customers. It's a tool that you can use to improve, but don't think for a second that it can replace doing the basics right when it comes to account management!

 

Finally, Marc shared with us some NPS statistics from their business since January of this year, comparing NPS with their sales pipeline. What we saw was that NPS was tracking very closely with pipeline health. It reminded me of many conversations I have had with sales leaders over the years. They have often said, "John, if there are problems in the account and they are not happy, then they aren't going to let me come in and sell something new until we address whatever the issues are first."

 

I don't want to put words into Marc's mouth, but I certainly saw something along these lines when I looked at the monthly NPS data, and how that tracks to their changes in pipeline... And he points out that if you are in a business (like they are) where customers often are operating under multi-year contracts, then the linkage from NPS to results may show up much more quickly in new pipeline opportunities (since these are customers who are making an incremental purchase decision), versus overall revenue data, which has a multi-year renewal cycle attached to it.

 

Click here to download the presentation.

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