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Net Promoter Community > Jeanne Bliss' Blog > 2007 > July > 02
 
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As you get your Net Promoter methodology stabilized, the most important action for your company is how you actively use the information to a) hold your "Promoters" close, b) understand what makes people ambivalent about you (the "Passives"), and c) really understand and feel the pain of your "Detractors."

 

This blog post will focus on Detractors and how to mine the gold by listening hard to their feedback to improve your organization and relationship with your customers. Let's make this simple and break this into five key action items:

 

Action Number 1: Know your Detractors by segment.

 

The importance of driving the "customer mission" as a strategic imperative of the business is to throw a bright glaring light on the profitability levels of customers who are your detractors and advocates. Do the hard work to not just understand your Detractor score or metric, but to know that metric for the profitability segments of your business. Are your most profitable customers delivering (hopefully) high scores as Promoters or low scores as Detractors? Do you see fluctuations in your Detractors among your segments? As you see your scores over time, can you identify flare-ups in your Detractor scores that are particular to segments of your business? If you can understand how your mix of customers who are Detractors impacts your profitability, this will be one more tool in your arsenal to drive the reprioritization of resources and focus within your company.

 

Action Number 2: Know the reasons why customers are your detractors.

 

This requires additional conversation with Detractors. Ensure that knowing the "why" is as important as the score. To get that information, you need to reach out to these customers and genuinely ask what went awry in the relationship. If you make this a reliable part of the process, this data gathering will not seem as daunting as it sounds. Monthly, contact 100 Detractors. At about number twenty-five, the themes will start to repeat. They usually do. Also, refer to action number 1 -- to ensure you know if there are differences in Detractor issues by segment.

 

Actions Number 3: Conduct a monthly loss review.

 

Add an action that I call a "culture boost" to your monthly outreach to Detractors. Identify customers who have left and also call a sampling of them to find out the reasons for their departure. You will likely see that these issues coincide with those that the Detractors give you. Again, know the reasons by segment. This should give you plenty of momentum to focus and attach resources to problems that are driving your customers and your profitability out the door.

 

Action Number 4: Get the voice of Detractors in the Ear of Executives.

I've mentioned this before in my post, but it bears repeating. Have your executives and others in your organization do a healthy portion of the outbound calls to Detractors and customers who have left you. Reports are great. But there is nothing as powerful as hearing the voice of the customer personalizing and bringing the issues to life to drive traction.

 

Action Number 5:  Establish accountability to remove the Detractor Issues.

 

As we know, our corporate lives are filled with lists of priority action items. These Detractor items could easily land on one of those lists with great intention, but no real action or accountability applied to it. The key here is to create a simple accountability process. Identify the top five issues. Then create a standard process of accountability for how to dig into and diagnose the problem and resolve the issues. An example is this:

 

         By Week 2 -- map and diagnose the root causes

         By Week 3 -- identify potential solutions

         By Week 4 -- proposals and budget implications

         By Week 6 -- action

 

When you make not just "managing" the number (read trying to push down) the number of Detractors -- but making the work be as much about asking the "why" behind the number -- you will turn the tide of the purpose of the Net Promoter approach. This is when it will start to become part of the DNA of your organization -- something that prompts repeatable processes that impact how people do their work and how the company conducts itself with customers.



Jul 10, 2007 1:36 AM Guest Vandana  says:

Have been tracking means for measuring customer satisfaction as part of my research..Measuring Customer Satisfaction However, as i delve deeper into the field of CGM, can't help querying-Can Netpromoter be applied to Consumer Generated Media?. I feel that the index of loyalty and the way opinion leaders influence purchase decisions of their friends and others are matters of primary importance to organisations today. However, the fact that a large no. of potential consumers for a product browse the internet for information on the same; thereby making CGM  a primary influencer.Hence the media generated by customers needs to be harvested for information to indicate loyalty scores of the consumers creating the same.Can the concept of Netpromoter Score be applied there? If yes, how?

 

Oct 29, 2008 7:29 AM Guest Bart Gotte  says:

Hi Vandana,

 

Your question is intriguing and increasingly relevant. We found the following results based on a research project that was specifically aimed at the impact of internet consumer review platforms (n=725):

a) Online review platforms are an important channel for recommendation power. 85% of Dutch consumers who have access to internet visit review sites. 75% reads reviews or experiences posted by consumers. 50% reads ALL postings of the product of interest. 24% writes a review now and then. Those who are most likely to write a review are promotors (63%) verses detractors (11%).

b) Online recommendations add value. We conducted the following experiment. Consumer were asked to choose one out of three identical hotelroom offerings. The three options were: 1) priced at 175E, rated 5,5 by 100 consumers; 2)priced at 200E, rated 8,0 by 1 consumer; 3)priced at 225E, rated 8,0 by 100 consumers.

The results were:

Option 1 was chosen by 10% of the consumers. Option 2 by 13%. Option 3 by 77% (!).

Even after rising the price with 25%, those who chose option 3 would still prefer that option.

In sum, The power of online recommendation is worth a lot of money...