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This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 1
Rob Markey Global Leader, Customer Strategy
& Marketing Practice
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 2
HOUSEKEEPING
- The recording of today’s presenta>on will be available on cxweek.com
- Use the chat window to ask ques>ons throughout the presenta>on. We’ll reserve >me
at the end for live Q&A with Rob - Join the conversa>on on TwiOer by twee>ng @Qualtrics using #cxweek
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
From score to system: NPS and Culture Change Employee advocacy and the Net Promoter® System(SM) Rob Markey May 2015
®Net Promoter, Net Promoter score and NPS are registered trademarks of Bain & Company, Inc., Satmetrix Systems, Inc. and Fred Reichheld Net Promoter System and Promoter Flywheel are service marks of Bain & Company, Inc.
@rgmarkey
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 4
+
Empowering and driving change at the front line
20,000 employees in 24 countries
Source: The Ultimate Question 2.0; Fortune; American Express website
Jim Bush
• Scripts for consistency, quality, and speed • Average handling time for unit cost targets • Call quality monitoring
High employee turnover, stalled customer satisfaction
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 5
Bush adopted an approach we call “Leading by Letting Go”
Source: “Leading by Letting Go,” Rob Markey, Harvard Business Review 2013
Call center scripts and average handling time
limits eliminated
Hiring criteria changed to emphasize hospitality
and values versus technical skills
“Telephone Service Center Reps” became “Customer Care
Professionals” with increased pay and schedule flexibility
Supervisors’ jobs reworked so they could spend
double the time coaching and training
Closed-loop Net Promoter System
implemented
Focused Customer Care Professionals on
a single metric:
Customer NPS
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 6
Clear, simple goal that resonates
Freedom within a framework (guardrails)
Coaching and support
High-velocity closed-loop feedback
Leading by Letting Go requires four crucial enablers
Source: “Leading by Letting Go,” Rob Markey, Harvard Business Review 2013
Copyright 2015 Bain & Company, Inc.
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 7
Bush’s approach resulted in breakthrough performance
• NPS doubled • American Express won the
JD Power Award for service 5 years in a row
• Employee attrition cut in half
CUSTOMER SERVICE AND EMPLOYEE ENGAGEMENT
IMPROVED RESULTING IN HIGHER
PROFITABILITY
• Costs came down 10% per year (as a percent of revenue) due to: - Fewer dial transfers - Lower average handling time - Fewer repeat calls – higher first
contact resolution
Source: “Leading by Letting Go,” Rob Markey, Harvard Business Review 2013
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 8
The Promoter Flywheel(SM): Employee and customer advocacy go hand-in-hand
Work here! Buy from
here!
Employee advocacy
Enthusiasm, energy,
creativity
Profitable, sustainable
organic growth
Buy from here!
Excellence, trust, value
Growth, opportunity
Customer advocacy
The Promoter Flywheel is a service mark of Bain & Company, Inc.
Copyright 2015 Bain & Company, Inc.
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 9
Employee engagement is especially strained at the front line of the organization
ENGAGEMENT IS WORSE THE LOWER YOU GO IN THE ORGANIZATION
ENGAGEMENT IS POOR AMONG CUSTOMER-FACING EMPLOYEES
Source: Netsurvey/Bain analysis, September 2012 (n=27,628); Forrester, Nov 2010, “Do your employees advocate for your company”?
Employee NPS
Boardroom Front line
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 10
Satisfaction is necessary but insufficient to generate energy, enthusiasm and creativity
I have a safe work
environment*
I have what I need to do a good job**
I am valued (and compensated)
fairly
Employee satisfaction
Foundational basics: Eliminating employee pain points
*Safe in both physical and emotional terms **Including resources, training, technology, process, personnel, and organizational effectiveness, among other things
Extraordinary purpose and
accomplishment
Extraordinary teamwork and
affiliation
Employee advocacy
Differentiators: Creating promoters
Extraordinary autonomy,
learning, growth
Copyright 2015 Bain & Company, Inc.
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 11
Employee advocacy delivers a completely different experience to customers
Call Center
Example
PROMOTER EMPLOYEE
• Energetic: Never rushes customer off call, demonstrates empathy throughout
• Enthusiastic: Ensures full resolution of customer issues
• Creative: Proactively identifies new ways to please customers
PASSIVE
• Perfunctory; answers only what is asked
• Provides additional info only when requested
• Sounds detached, indifferent, following a script
DISENGAGED DETRACTOR
• Tries to end call as quickly as possible
• Disagreeable, may blame customer for not understanding policies
• General negative tone, not a team player
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 12
Net Promoter Score predicts individual and firm-level performance; common language
0-6
7-8
9-10
Extremely likely
Extremely unlikely
Would you recommend us to a friend?
% Promoters
Net Promoter Score (NPS)
Minus NPS of the best relevant competitor
% Detractors
Relative NPS (rNPS)
Minus
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 13
Net Promoter System – mechanisms that support a culture of customer-centricity
Reliable, trusted currency/metric NPS/eNPS; common language; loyalty economics
Feedback, learning and improvement
Individual learning, behavior change,
and connection with customers
Inner Loop Outer Loop Root cause analysis,
prioritization & implementation of
structural improvements
Huddle Team problem-solving, issue escalation,
mutual commitment
Sustained leadership commitment Strategic priority; inspirational behaviors that earn customer and employee advocacy; sponsorship spine
Employee/team environment focused on loyalty Safe environment, effective organization, right tools and training, valued fairly
Robust operational and analytic infrastructure Copyright 2015 Bain & Company, Inc.
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 14
Inspirational leadership: at the heart of creating a customer-centric culture
Walt Bettinger CEO, Charles Schwab
View the video at http://NetPromoterSystem.com/greatness
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 15
Set the ambition
• Establish a clearly defined and compelling vision for the future
• Set inspiring but achievable goals for competitive NPS leadership and continuous improvement
Walk the
walk
• Invest in the skills of leaders from the executive level to the front line
• Recognize and make the most of linchpin employees, those leaders that have a big influence on the customer or employee experience
Inspirational Leadership: Three steps
Cascade commitment throughout the organization
• Make regular time to interact with customers and employees (closed loop)
• Focus attention on customer issues • Coach employees, support your teams,
make things better every day
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 16
Inner Loop: High velocity closed-loop feedback accelerates learning and customer focus
Close the loop to listen and if applicable, fix customer issues
Learn and grow with the benefit provide active coaching
Engage the employees Get customer feedback
• Follow up with any customer whose feedback indicates it is merited
• All groups share in follow-up • Listen with empathy; address
open issues as appropriate
• Collect feedback only at moments of truth
• Respect the customer’s time with very short survey
• Document what was learned from customer follow-up
• Commit to individual improvement
• Coach and train individuals • Reinforce positive behaviors
• Share each piece of feedback individually and immediately with employees
• Emphasize individual events, not statistics
Follow up with select customers
Identify actions & coaching
needs
Execute on actions & coaching
• Provides employees with a sense of autonomy as they respond to customers’ needs • Increases the quality and frequency of employee coaching and learning • Turns many customer detractors into promoters
Follow up with select customers
Identify actions
and coaching
needs
Execute on actions and
coaching
Communicate
customer feedback
Gather and understand
Individual learning & connection with
customers; autonomy
Inner Loop
Copyright 2015 Bain & Company, Inc.
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 17
Huddle: Create a sense of teamwork and ownership; surface themes for escalation
HOW DO THEY DO IT? WHAT IS A HUDDLE ?
Frequent and highly interactive two-way dialogue among supervisors and their teams
- Discuss how well we are taking care of customers and review customer verbatims
- Celebrate employees who contributed most to our success The “Daily Download”
Escalation of key themes to the Outer Loop to improve processes, policies, products, and more – requests for the support needed to do a great job
Team problem-solving sessions to discuss biggest challenges, barriers to success, and opportunities
- Employees work together to identify root causes of challenges and suggest solutions
- Employees make personal commitments to do things differently
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 18
Vanguard and the Outer Loop: Connecting with customers when it matters most
View the video at http://NetPromoterSystem.com/videos
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 19
Outer Loop: a rigorous, transparent process instills confidence and engagement
Develop solutions; implement
Understand root causes Analyze feedback & data Communicate Prioritize
opportunities
Determine root cause
Identify and
propose potential actions
Prioritize actions; decide
which to implement
(PMO)
Approve necessary resources
(PMO) If analysis requires
significant resourcing
Other actions surfaced by
business (e.g., non-client
experience actions)
Synthesize
Front-line NPS
Comp bench-marks
Other em-
ployee input
Opera-tional data
A
B
Item triage shared with employees to encourage
full transparency
Triage and assign item
owner
Just do
Study further
Defer/don’t do C
Explain why to employees
and close loop with clients
Imple-ment by testing, learning,
and modifying
Encourage adoption and close loop with crew and clients
If PMO decides against implementing
Source: Bain case experience
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 20
Each primary element of the Net Promoter System helps engage and energize employees more deeply
Source: Bain case experience
Feedback & scores delivered daily to each agent
Daily NPS feedback requested via SMS, answers registered
Coaching sessions
Structural issues identified and escalated
NPS, competitive intel, complaints, operational data analyzed
Five why’s, additional customer interviews, etc.
Cross-functional teams form to develop, test and implement potential solutions
Leaders communicate improvements directly to customers and to agent teams
Individual learning & connection with
customers; autonomy
Inner Loop Outer Loop Prioritization &
implementation of structural improvements
(e.g., pricing, product, process, policy, etc.)
Huddle Group problem-
solving, issue escalation, mutual
commitment
Gather and understand
Follow up with select customers
Identify actions
and coaching
needs
Execute on actions and
coaching
Communicate
Analyze feedback and other
data
Identify issues and
opportunities; prioritize
Under-stand root
cause and develop empathy
Develop solutions and
implement actions
Communicate with employees
& customers customer feedback
Agents, supervisors, leaders make follow-up calls
Agent level trends monitored; Individual dashboards generated
Actions taken to repair customer relationship
Frequency, severity, impact, readiness
Copyright 2015 Bain & Company, Inc.
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 21
Net Promoter System and culture change: Typical risks along different parts of the journey
Energetic, enthusiastic, and creative
Time
Resistant, pessimistic, disengaged
Employee engagement
Uninformed optimism
Informed pessimism
Hopeful realism
Informed optimism
Senior leaders
Front line and middle management
Jaded cynicism
“Valley of despair”
Build foundation
and factbase Pilot & early
implementation Rollout &
full potential Maturity &
re-invigoration
Common risks:
• Leadership team not aligned
• Intent and case for change missing
• Sponsorship spine broken
• Customer-centric behaviors not reinforced
• Unrealistic roll-out plan • Cross-functional
processes ineffective
• New priorities steal attention
• Fatigue
Hopeless defeat
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 22
The results are clear: companies with engaged employees deliver superior financial results
… AND IMPROVE PROFITABILITY
• More customer loyalty - Higher average revenue per
customer - More customer referrals - Less customer churn
Revenue
Cost
• Reduced attrition - Less hiring and training
required - Less onboarding
• More efficiency - Increased productivity - Lower absenteeism
• And for some industries: - Less shrinkage - Higher quality - Fewer safety incidents
COMPANIES WITH HIGHER ENGAGEMENT GROW FASTER…
Source: Hay Group Insight “Engaging and Enabling Employees to Improve Performance Outcomes” (2009 Hay Group global normative database)
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 23
Net Promoter System – mechanisms that support a culture of customer-centricity
Reliable, trusted currency/metric NPS/eNPS; common language; loyalty economics
DRAFT
Feedback, learning and improvement
Individual learning, behavior change,
and connection with customers
Inner Loop Outer Loop Root cause analysis,
prioritization & implementation of
structural improvements
Huddle Team problem-solving, issue escalation,
mutual commitment
Sustained leadership commitment Strategic priority; inspirational behaviors that earn customer and employee advocacy; sponsorship spine
Employee/team environment focused on loyalty Safe environment, effective organization, right tools and training, valued fairly
Robust operational and analytic infrastructure Copyright 2015 Bain & Company, Inc.
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 24
NetPromoterSystem.com