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

Net Promoter Day Paris Blog 2008

2 Posts tagged with the closing tag

Alexandre Murat — Sony Style Europe

 

Alexandre helped us tie together many of the ideas we explored today, by telling us how Sony is integrating NPS into their DNA. How they have moved from a product-focused company, to one that is more and more focused on customer experience.

 

Why use NPS? They wanted to find a metric that would link their business activities to innovative experiences (combining product with overall experience).

 

They have done this by focusing on 4 steps:

 

  1. Understanding and interpreting customer needs, using feedback as the central point for this. And on this point, he separated "process improvement" from "innovation," pointing out that the first is great at removing defects, and must be paired with the latter to get to really excellent experiences.
  2. Engaging on strategic improvements. What they have found in analyzing detractor comments is that operational improvements are linked primarily to having products in stock and at a competitive price. By contrast, the more strategic and impactful factors that lie beneath detractor ratings are linked to the range of products available, and the convenience of dealing with Sony. When I hear "convenience," I think "end-to-end" experience. I get it!
  3. A big focus on service interactions and service "amplification". Operationally, they track this closely with NPS, receiving about 2000 responses per month based on surveying online buyers. And they close the loop with all detractors, because to them, complaints are a huge opportunity to improve.
  4. Using customer feedback to find totally new value propositions, and integrate this into their product line. Sony Style in the has already established about 200 stores in the US, and they are starting to do this in Europe now also. In fact, one of their flagship stores is opening about a block from where we are today in Paris, on Avenue Georges V, just off the Champs Elysees.

 

By the way, Alexandre admitted he was pleasantly surprised earlier in the day when Ralph Hababou, told his story about the WOW experience he had when dealing with Sony for a repair on his Vaio. Kudos to the Sony customer service department! If they can delight Ralph, who is an expert on the topic, they must be doing something right.

 

Alexandre concluded by talking about the importance of the Golden Rule. Clearly, they are committed to doing the right thing by the customer, and they are investing in several major initiatives...but many of them are still undercover. So watch for more new things from Sony in the near future!

 

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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