Welcome, Guest Login Register
loading...
Net Promoter Community > San Francisco Conference Blog 2009 > Authors > LWest
 

Deborah Eastman, Chief Marketing Officer, Satmetrix

 

It was nice to see some focus on B2B business models. As the owner of a company that serves other businesses, this session was especially attractive to me – plus Deborah Eastman is always has the inside track on B2B and NPS. Eastman started off outlining the keys to success in using Net Promoter in a B2B environment:

  • NP can be leveraged to improve relationships
  • Make sure Net Promoter is integrated with the core business operations
  • Insure that action is taken on any feedback

 

Eastman also suggested that the request for Net Promoter feedback be built into client engagement contracts to make sure projects don’t end without getting the feedback needed. The average NPS for a B2B company is 24%.

 

IMG_2194.JPGA key takeaway from this session was the best practice of only surveying twice per year and the response rates should be 60% or higher. Eastman cautioned against accepting high Net Promoter Scores without also looking at your response rates. High NPS’s without high response rates render high Net Promoter Scores almost meaningless and probably means that the data is not trustworthy. In fact, non-respondents should be viewed as detractors with the assumption that the individual doesn’t care about the relationship enough to take 5 minutes to complete the survey. Eastman recommends dealing with detractors in a very direct way – by responding IMMEDIATELY to detractors. In general, it’s a good idea to not let detractors feelings to fester. She says that she’s seen conversations with detractors result in upsells quite often. A session participant noted that many companies are quickly tiring of survey taking so many companies are creating their own survey evaluations for their top vendors and releasing the survey results to the vendors – a different spin on Net Promoter for sure.

 

At the close, Eastman recommended closing surveys on time and getting the results – along with action steps – out the door within 30 days. The potential debate is, whom should you return that survey data? Just to the respondents or to everyone regardless of whether they responded or not?

If you chose the former, you risk not engaging potential detractors (the people who didn’t respond) and filling them in on your company’s improvement plans. However, if you inform everyone, you air laundry and may point out areas of weakness that many people may not have otherwise known about. As with everything, there is a trade-off and you need to do what’s right in your specific scenario. Yet another reason to get certified – to help address pesky dilemmas like this one.

 

Click here to download the presentation.

... more >>
0 Comments Permalink

Golden Rule Behavior

Posted by LWest Jan 26, 2009

Scott Baker, President & CEO, Paul Davis Restoration

Don Peacock, Franchise Owner, Paul Davis Restoration

 

Pairing a franchisee and a franchisor certainly made for an interesting session.  All day I had heard stories of hard-won lessons and triumph about what it meant to implement Net Promoter within four walls; I was really interested in learning how the team at PDR was able to pull it off with franchisees!

 

IMG_2106.JPG

 

As always, it all starts in making the choice to “go NP”. Baker mentioned that the reasons that Net Promoter was ideal for PDR were:

 

  • the system is simple
  • it serves as one, single “trackable” metric for busy franchise owners
  • although they had tried to improve customer loyalty, they weren’t able to make a big enough improvement – and they didn’t want to be satisfied with the status quo
  • it’s a way for franchisees to show differentiation without spending a lot of money on advertising
  • he felt the goal of Net Promoter would really resonate with franchisees

 

IMG_2104.JPG Once the decision was made, the PDR team set the goal of getting the homeowners themselves to recommend PDR to their insurance agents and adjusters.  Along they way, by using Net Promoter, they were able to make some correlations and learn some lessons it would have been very hard to learn or they may not have ever learned, like; a surge in sales sometimes results in a decrease in their Net Promoter Score –especially during an emergency or disaster. This is reasonable because during trying times the focus turns to helping as many needy people as possible and as a result some of the elements that drive Net Promoter Scores are not as prominent. They were also able to discern the top three causes of the creation and existence of detractors AND promoters.

 

Some causes of detractors are:

  • lack of communication
  • lack of timeliness and
  • challenges with quality of service and workmanship

 

Some causes of promoters are:

  • professionalism
  • timeliness and
  • quality work

 

No real shockers there, but it’s always good to identify what’s driving your NPS scores.

Team PDR decided to address some of the core reasons behind detractors by creating The Paul Davis Customer Experience Manual, which outlines the PDR keys to customer loyalty:

  • First contact is made with caring and compassion (many of the people who contact PDR do so because of a natural disaster or some other personal or family crisis)
  • Engagement (this is where they begin the process of developing a long term relationship with the customer)
  • Commitment (when they get the customer’s permission to proceed with the restoration work as outlined)
  • Fulfillment (when PDR gets an opportunity to actually do the work they’ve outlined and deliver on their promises)
  • Completion (the opportunity to create a long lasting relationship with the customer)
  • Continue (essentially “lather, rinse, repeat”)

 

But, the main cause of Net Promoter success at Peacock’s franchise is in requiring that everyone attend some sort of customer service programming for at least one hour every week.

 

Baker was careful to express that participation in Net Promoter is not mandatory for franchisees, but he was clear about stating that having a franchisee like Peacock to tout the benefits of using NP could not be paralleled.

 

To close the session, Baker and Peacock shared some lessons learned:

  • Golden Rule Behavior and Net Promoter appeals to candidates who want to do the right thing so when hiring employees, if there’s not a fit it’s obvious right away
  • It’s a good idea for franchisees to have their own awards ceremonies – it shows they’re committed to the process
  • High NPS scores have the potential to mask other problems, so don’t be lulled into complacency because of high scores – always look for ways to improve on your improvements and always look for the not-so-obvious ways you’re dropping the ball
  • Surveys that are sent closer to the actual time of the transaction get higher scores because the experience is still fresh in the mind of the customer.
  • Oh, yeah, and when workers wear “dust booties” over their work boots when coming inside and when they ask for permission to park their trucks and use the bathrooms – those actions always lead to a higher NPS. As a woman, I can totally see the logic in that!
... more >>
0 Comments Permalink

Melissa Namiot-Mader, Director, Business Systems Analysis and Loyalty Programs, Veritude

John Abraham, General Manager, Net Promoter Programs, Satmetrix

 

IMG_2073.JPGMelissa Namiot-Mader and Satmetrix’ own John Abraham had a bit of a ‘fireside chat’ session about how Veritude has leveraged Net Promoter processes to double their NPS inside 6 months and all but leave their competitors in the dust. Vertitude decided to use the NPS for several reasons:

 

 

  • to set themselves apart in the uber-competitive staffing industry
  • they were working very hard to land clients (and were successful in doing so), but now they wanted to train their focus on KEEPING those clients
  • using the Net Promoter approach really fit their industry and what they do as a company.

 

What got them to measurable improvement was a combination of a number of carefully thought out, consistent action-steps:

 

  • Veritude’s CEO walks the floor and takes a high-touch/open-door approach to dealing with employees.
  • They conduct surveys twice per year without fail
  • They conduct Net Promoter workshops and weave Net Promoter concepts into employee meetings
  • Net Promoter Scores are tied to compensation
  • All new hires are introduced to Net Promoter
  • All new executive officers are given a copy of “The Ultimate Question” and are debriefed on what role Net Promoter plays in the company
  • Each of their sites is required to do an annual Net Promoter action plan based on the verbatim feedback from the previous year. Only until they have created their action plan are they given their NPS from the previous year and then the scores are published publicly.
  • NPS questions have been randomly built into their online time recording software via a pop-up questionnaire. Employees answer questions like:
    • Have you heard from your staffing consultant recently?
    • Would you recommend this staffing consultant to a friend or colleague?

  • They’ve also kept it light by creating personas for promoters (a cheerleader), detractors (a devil with horns and pitchfork) and passives (the “Pat” character from Saturday Night Live)

 

IMG_2071.JPGWhen I asked Namiot-Mader what she would recommend for Net Promoter newbies, she advised that those interested in Net Promoter should make sure the Net Promoter approach is a good fit for their company and industry. She also suggested getting an executive sponsor or advocate. But, most of all she stressed DOING something with the data you collect. She cautioned not to try to address all the weak points at once, but to instead break the list down into manageable chunks – business line by business line if need be. As someone who has earned her Net Promoter Certification, Namiot-Mader encouraged the session participants to opt for certification because it’s good to go through implementing Net Promoter concepts with a group of people who are in the same position as you and whom you can bounce ideas off. Veritude has been effectively using Net Promoter in closed-loop for the past 2 years, but have been keeping track of their scores for the past 3 years and the results speak for themselves:

 

 

  • In 2007, their NPS doubled from 2006
  • In 2008, they exceeded their goals by 13 points
  • They have created a new standardized resume template and implemented a consistent resume submission process so that their customers are able to see the quality of their candidates
  • They implemented a new internal communication plan
  • And, more importantly, they were able to answer the tell-tale question: “What should we NOT be doing?”
... more >>
0 Comments Permalink

Ryan Magnon, Vice President Quality, The West Paces Hotel Group

 

When the founder of your hotel is a former Ritz Carlton executive and when you have a super-sized mission statement (“to be the global leader in the service business”), you’ve got some pretty big shoes to fill. And, it looks like the folks at West Paces are up for the challenge.

 

IMG_2039.JPG

 

Magnon shared a story about switching into casual attire while visiting one of their properties and talking with a guest in the bar. As a veritable undercover customer loyalty agent, Magnon sidled up to a guest and asked matter-of-factly, “So, what do you think of this place?” As the conversation went on, the guest informed him that he would pay almost 30% more NOT to stay at another hotel. Of course, eventually, Magnon revealed who he was, but that’s the kind of dedication and focus needed to drive Net Promoter Scores through the coffered ceilings at their exclusive resorts.

 

All West Paces employees carry around a 25-point service cannon card to remind them of their commitment to Net Promoter-level service. (Magnon was kind enough to bring some of the cards to the conference as samples.)

 

West Paces has been innovative in their approach to Net Promoter. They have created a “learning lab” where the latest and greatest West Paces ideas are tested on a closed “road” before hitting reality highway.

... more >>
0 Comments Permalink