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Net Promoter Community > Richard's and Laura's Blog > 2010 > December
 

"Who the hell wants to hear actors talk?

H.M. Warner, Warner Bros.,1927

 

Continuing my predictions for 2011, with the general theme of  “hopefully you haven’t heard this one before”.

 

Number 3: The (IT) Empire Strikes Back

 

Information technologies are a big part of the success story behind voice of the customer programs in general. Trying to engage thousands of employees and hundreds of thousands of customers (in any kind of coordinated exercise) is generally considered to be, first and foremost, an exercise in technology enablement. Net Promoter as a discipline puts the Information Technology cat amongst the data pigeons by suggesting that everyone on the front line with the customer will be getting context specific real time reporting and closed loop support. And that’s just for starters.

 

Net Promoter data will create a major information resource for corporations that provides segmented attitudinal data in a scale and detail that companies have never had before. Heck, this could be the best database the company has; after all, unlike your CRM database, you know these customers exist as they replied to your survey! Data mining will suddenly seem very exciting, as will the opportunity to finally connect all those CRM data sources to your NPS data to our social media data etc etc.

 

Of course, all of this is non-trivial, and a lot of it will require IT assets from within the firm that have previously been out of the loop. NPS program leaders who effectively outsourced IT to their Software-as-a-Service vendors in the past will find they need a lot more internal support if they are going to make all these systems work together. And, with perfect timing, IT organizations are becoming increasingly aware that those “in the cloud” systems that their internal clients are buying outside their controls are becoming part of the information lifeblood of the business.

 

It’s a marriage for sure. Shotguns optional.

 

If you are running your Net Promoter program, expect a lot more IT department dependencies, involvement and complexity as your program becomes a mainstream information systems initiative.

 

Number 4:  Some things won't happen

 

It should, in theory, be easier to predict something won’t happen than predict it will. After all, there are a finite series of things that will occur, and an infinite list of those that won’t. But there is something to learn from looking at good ideas that just don’t seem to gain traction so I’m picking a couple.

 

Employee Promoter Score is my first. Don’t get me wrong, I’m all in favor of employee loyalty, and just about every program should care about employee adoption of NPS. But formal employee loyalty process stays in the sidelines for most companies as they either go through the motions, or just skip the idea altogether. I know I’m going to get upset emails telling me about how great your employee loyalty program is, but all I can say is “well done, thanks for sticking with it”. My bet is you are a minority.

 

Equally egregious will be the lack of investment in reference programs. I love reference programs; I keep thinking that every b2b firm should have a sophisticated approach that takes known promoters and funnels them into a database which then… well, you probably get the picture. Some of the case studies are exceptional. People won’t fund it sufficiently.

 

Please feel free to prove me wrong on both these.

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It would appear that we have reached the limits of what it is possible to achieve with computer technology, although one should be careful with such statements, as they tend to sound pretty silly in 5 years
John Von Neumann (1903 – 1957)*

 

‘Tis the season to be making predictions, and I’m not going to miss out on the annual opportunity to be proven wrong and demonstrate the world’s unpredictability. As smarter people than I have already made most of the well thought-through predictions, I’m going to try a different tack; my challenge is to come up with predictions you have not already thought of, or at least not heard somewhere else. This of course, increases the probability that they are simply wrong. Anyway, there are seven of them… as always your feedback is welcome! Here are the first 2...'

 

#1 Net Promoter Fusion

 

This is a trend that I believe is set to accelerate in 2011. It seems too self serving to simply say that Net Promoter will continue to gain adoption in 2011 (which it will) so perhaps a more interesting observation might be that it won’t be as distinctly “Net Promoter” as it was in the past. I believe that more companies will claim to be adopting Net Promoter, but when we look at their programs they may have little in common with prior years. This is not your father’s Net Promoter.

 

This is in part because NPS has always been a big tent. Beyond the standard calculation, and the notion of promoters, passives and detractors, there isn’t much else that is absolutely “standard”. Lots of companies run their Net Promoter programs with lengthy questionnaires that look more like traditional programs; adopt focus groups in support of their understanding of loyalty and otherwise do stuff that they have been doing for years without the benefit of the moniker.

 

On the other hand, some of our favorite staples of Net Promoter Discipline are well practiced in programs that don’t care about NPS. Closed loop action planning, verbatim analysis, widespread distribution of data to front line employees etc. can still be executed with the most arcane and compounded set of loyalty metrics.

 

During 2011, companies who claim to focus on NPS may find themselves with more in common with those who don’t, than with those who claim a similar methodological choice. So what? Well, it’s a timely reminder that companies are wise to stay clear of perceived methodological purity solely in the name of a flavor of customer loyalty program. Get the basic principles established and stay true to them, but don’t be worried about being wedded to chapter and verse.

 

#2 The Social Media Sandbox

 

The majority of industry pundits point to the inevitability of social media as a lynchpin of your customer experience program. And certainly there are lots of firms willing to sell you solutions – many quite useful – to the “opportunity” presented by twitter, facebook and their ilk. But in 2011, significant corporations will continue to treat social media as a sandbox; an opportunity to experiment and learn in an (ideally) fairly safe environment. In short, we will make less progress than we imagine.

 

The hypothesis that social media is primetime for customer experience has lots of supporters and few willing to disagree. If you are selling solutions, your incentive to push the idea as mainstream is obvious, but lots of companies desire the publicity from being on the cutting edge – or at least making sure they are not seen as social media luddites. So a stream of exciting ideas and case studies is virtually guaranteed. Don’t read that as an indication that the kinks are worked out.

 

We can expect a few, well publicized examples of major brands engaged in sharp swerves, if not u-turns, based on micro-communities of vocal social media users. These groups are now quite powerful relative to their size and, once empowered, are hard to ignore. Only time will tell if the choices companies make will be the right ones. We can also expect companies to experiment with social media favoritism: you might get a more rapid response to a problem by tweeting than calling the established 1-800 number. The consequences of such service bias are hard to estimate. 15 years of call avoidance efforts around use of the internet might look silly if we just found a new route for creating calls, and many firms will be hoping that their customers don’t catch on to the notion that going through the support operation is less effective than micro-blogging your unhappiness.

 

What is a well intentioned customer experience leader to do? By all means join the experiment, try a few simple ideas and see what you learn. But it’s pretty tempting to let others do the heavy lifting and make the mistakes. 2011 might be a year to watch and learn.

 

 

 

* John von Neumann (1903 – 1957) was a Hungarian-born American mathematician who made major contributions to a vast range of fields, including set theory, functional analysis, quantum mechanics, ergodic theory, continuous geometry, economics and game theory, computer science, numerical analysis, and statistics, as well as many other mathematical fields. He is generally regarded as one of the greatest mathematicians in modern history.

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Net Promoter Reality

Posted by RichardOwen Dec 7, 2010

“Reality is that which, when you stop believing in it, doesn't go away.“
Philip K Dick

 

Customer experience programs, oddly, are more like a belief system than a business system. When I ask companies who abandon their Net Promoter or Customer Experience program the response I hear is:  We got tired and gave up.

 

Of course, they don’t say exactly that. Corporations have a lot of ways to say “I don’t love you any more” to any form of initiative;  most of them involve cutting budgets. Scaling back. Reducing executive focus. No longer a critical priority, or, my favorite, “we have customer loyalty under control”.

 

Given that most of us, on sober reflection, would be hard pushed to claim that we have our customer loyalty issues “under control” and, in most cases, nobody doubts the value of loyal customers, why do some firms tend to wax and wane with their customer experience programs?

 

I’m sure there are many reasons peculiar to each business. I have heard one topic above many recently. Customer loyalty data and net promoter scores are, well, very uncomfortable. Actually downright painful. And human nature is to avoid pain.

 

Sales forces, in particular rarely argue against the merits of NPS data, but in practice will rail against its use. Whatever is said publicly, I know many sales leaders would be happy to see the data go away completely. They often achieve that ambition given enough time. They are not saboteurs of the business, they are simply reacting to a process that is uncomfortable at best, painful at worst and where the emotional costs of personal compliance often exceed the business merits of taking part. Let’s face it, we may know deep down that our customers don’t love us, but that doesn’t mean we really want to find out how bad things might be. Sales people are optimists by nature (you have to be) so why turn over rocks?

 

The problem is that reality doesn’t change just because you choose not to believe in less than favorable NPS data. Our role as leaders is to confront that reality, however unpleasant it might be, and act upon it. Yes, customer loyalty programs are an exercise in courage and perseverance.

 

Given these factors, let’s not make it harder than it has to be. A culture that focuses on detractors as an excuse to create blame, withhold compensation, stall careers or otherwise punish can be an invitation for resentment and ultimately undermine the goals of the program. On the other hand, attach no consequences to your net promoter program and run the risk that it has no impact.

 

Yes, we are in the grey area of culture management. For what it’s worth, consider a few learnings from companies that have endured. First, don’t be too quick to punish through compensation. Second, it’s never too soon to recognize and reward the successful creation of promoters. And finally, don’t relax the level of executive focus. Too often, the natural course for the program is to atrophy.

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