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Customer Loyalty Using Net Promoter Score Gary Fox Director, Dell Customer Experience EMEA Day at Dell – 26 & 27 April, 2010 Dell Small Business Excellence Award

EMEA Day at Dell 2010 - Customer Experience

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Page 1: EMEA Day at Dell 2010 - Customer Experience

Customer Loyalty UsingNet Promoter ScoreGary Fox

Director, Dell Customer Experience

EMEA Day at Dell – 26 & 27 April, 2010Dell Small Business Excellence Award

Page 2: EMEA Day at Dell 2010 - Customer Experience

Global Customer Experience

Agenda

• Customer Experience in Dell

• Global Customer Experience Team– How we measure customer experience

• Net Promoter Score– Overview

– Analysis

• Social Media

• CE Culture & Communications

• Q&A

Page 3: EMEA Day at Dell 2010 - Customer Experience

Quarterly Executive Meeting

Customer-centric, outcomes-oriented

Leveraging ourheritage – successand achievement

Globally relevant

Inspiring and evocative

Human and emotional

Grow and ThriveDelivering Technology Solutions That EnablePeople Everywhere to

Our CE Culture & Communications approach is a key

enabler of our Purpose efforts

Page 4: EMEA Day at Dell 2010 - Customer Experience

Quarterly Executive Meeting

• Michael Dell sponsorship

• Executive alignment

• Measurement – corporate scorecard

CE is a Top Priority Across The Company

Page 5: EMEA Day at Dell 2010 - Customer Experience

Global Customer Experience

How we are touching customers 35 BILLION marcom impressions

5,000,000 contacts into Sales

Online – 150 MILLION hits

Over 8,000,000 orders booked

16,000,000 Support contacts

In a typical quarter for Consumer & SMB ...

Keyword search on Google using “Dell Computer” = 28,700,000 results

Page 6: EMEA Day at Dell 2010 - Customer Experience

Global Customer Experience

Global Customer Experience Team

WW CE Roles & Responsibilities will ensure that the “The Customer” stays at the center of Dell culture

Strategy and Governance developed in collaboration with the business

Closed-loop feedback and ELT visibility to ensure continuous improvement

Set Global Policy & Measurement Standards for

Customer Experience

Drive Customer Experience Survey &

Listening Post Strategy

Identify Opportunities to

Improve Customer Loyalty

Ensure Progress on Key

Improvement Initiatives & Call

Out Risks

Ensure Closed Loop Feedback

Process

Provide Visibility to ELT on CE Performance

Customer Centric Dell Culture

Page 7: EMEA Day at Dell 2010 - Customer Experience

Global Customer Experience

We listen …

Page 8: EMEA Day at Dell 2010 - Customer Experience

Global Customer Experience

Dell Community Network

Customer Events & Surveys

Online Feedback

Customer Visits

Voice of the Agent

We listen …

Social Media

Page 9: EMEA Day at Dell 2010 - Customer Experience

Global Customer Experience

How Do We Measure Customer Experience?• Top down systematic approach

1. Overall customer loyalty – Net Promoter Score

2. Identify critical loyalty drivers

3. Develop Touch Point research that addresses top drivers

4. Drive Business Process Improvement

Page 10: EMEA Day at Dell 2010 - Customer Experience

Global Customer Experience

How Do We Measure Customer Experience?

Relationship System Transactional System

Action taken to improve experience Support Sales &

account management Product Billing, etc.

Loyalty MetricNet Promoter Score

Industry and competitive benchmark

Drivers of LoyaltyWhat touch points most

impact loyalty?Where should I focus?

Feedback triggered by a specific event InquiryPayment processing

Support call, etc.

Loyalty

Overall Customer Experience

Satisfaction with Touch Point

BusinessProcess

Page 11: EMEA Day at Dell 2010 - Customer Experience

Global Customer Experience

Why Net Promoter Score (NPS)

• One number from the “Ultimate Question”

• Credibility; HBR papers, Bain, Reichheld

• Most widespread within fragmented research industry

• Relevance; impressive Global & IT industry coverage

Page 12: EMEA Day at Dell 2010 - Customer Experience

Global Customer Experience

Net Promoter Score• The Net Promoter Score (NPS) is a feedback measurement that examines how

individuals view an organization.

• Based on the single question : “How likely is it that you would recommend [organization X] to a friend or colleague?”

• Respondents are asked to answer this question on an 11-point scale ranging from 0 (not at all likely) to 10 (extremely likely) (see Figure 1).

DETRACTORS(0-6)

PASSIVES(7&8)

PROMOTERS(9&10)

NET PROMOTER SCORE (NPS) = % of Promoters less % of Detractors

Page 13: EMEA Day at Dell 2010 - Customer Experience

Global Customer Experience

Net Promoter Survey Overview

Sales Team’s responsiveness to

requests

Continuity of your Account Team

Time to deliver orders meets your business

needs

Time to resolve technical issues with desktops and

notebooks

Range of services & solutions that meet

your needs

Account Management

Order Management Product Quality Value Tech Support Service &

Solutions

Net Promoter Score (NPS) – The Loyalty MetricOverall, how likely would you be to recommend Dell to a friend or colleague?

Category Satisfaction (helps us determine drivers of NPS)

Progress in Key Improvement Areas (helps us track progress between diagnostic surveys)

What would you tell a friend or colleague to get them to consider Dell?

Promoter (9-10)

What could Dell do to make you extremely likely to recommend us (i.e. give a score of 9 or 10)?

Passive (7-8)

What could Dell do to make you more likely to recommend us (i.e. give a score of 7 or more)?

Detractor (0-6)

Most important thing Dell can do to improve Customer Experience.

NP

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Page 14: EMEA Day at Dell 2010 - Customer Experience

Global Customer Experience

Lead times meet needs

Online order management

support

Comm during order process

Delivery as promised

Defect free orders

Resolving order issues

Invoicing & payment process

Impa

ct o

n O

rder

Man

agem

ent

Performance % Satisfaction

Prioritize

Improve

Leverage

MaintainLower Performance Higher Performance

High

erIm

pact

Low

er Im

pact Lead times

meet needs

Online order management

support

Comm during order process

Delivery as promised

Defect free orders

Resolving order issues

Invoicing & payment process

Impa

ct o

n O

rder

Man

agem

ent

Performance % Satisfaction

Prioritize

Improve

Leverage

MaintainLower Performance Higher Performance

High

erIm

pact

Low

er Im

pact

* Small sample size for Fast Track customers (n=85)

“Almost every time I order from Dell the item arrives to me before the tracking information is available online. This is very frustrating.”

“The given lead times are completely unreliable, although in a positive direction - I always receive my order well in advance of the estimated delivery date..”

ORDER MANAGEMENT EXAMPLEExample NPS Analysis – Order Management

Page 15: EMEA Day at Dell 2010 - Customer Experience

Global Customer Experience

Example Improvement Programs

Customer Feedback Programs

Customer issues

Single Point of Entry

Cancellations Rebook Team

Lead times Fast Track

Page 16: EMEA Day at Dell 2010 - Customer Experience

Global CE

Best Practice - Closed Loop Feedback

SFDC task for each DetractorEmail with link to SFDC rating

• ISM and RSM are informed of Detractor feedback within 24 hours of Customer’s survey completion.

• Sales Manager calls Detractor within 2 days to determine root cause and address concerns.

• Sales Manager enters detailed comments about root cause and resolution in SFDC task.

Page 17: EMEA Day at Dell 2010 - Customer Experience

Global Customer Experience

Best Practice – Closed Loop Feedback

Page 18: EMEA Day at Dell 2010 - Customer Experience

Global Customer Experience

Best Practice – Closed Loop Feedback

Page 19: EMEA Day at Dell 2010 - Customer Experience

Global Marketing | Social Media and Community

Why Social Media?

If Facebook were a country... it would be the world’s 4th largest. (400M+ members)

4 out of 5 internet users are members of social networks

1 of every 6 minutes online are spent in member communities

34% of bloggers post opinions about products and brands

25% of search results for top 20 brands are links to user-generated content

We are in the Connected Age - Evolved from past Internet, Information Ages

Page 20: EMEA Day at Dell 2010 - Customer Experience

Global Marketing | Social Media and Community

Our Vision Deliver breakthrough social commerce innovation

Grow vibrant communities inside & outside of Dell

Create word of mouth groundswell of customer

promoters

Transform Dell through active listening & responding

Page 21: EMEA Day at Dell 2010 - Customer Experience

Global Marketing | Social Media and Community

Failing to Listen & Respond to Social Media can affect Customer Sentiment

• 12/3 Order delay posts hit Forum with 1st acknowledgement 12/17

• No Dell response until 2/17 when Lisa G offers to help AW customers with sentiment shifting & customers begin promoting & referring Lisa to other customers

Case StudyAlienware Delays

12/17 Dell acknowledges

general delays & offers “holiday card”

Customers get multiple delays: “Shipping date: Originally was 12/4/2009; however now every 6-7 days they keep delaying

the delivery date out another week”

2/17 Dell acknowledgement” I have recently been monitoring this forum and reading the posts. I see multiple people extremely frustrated, which each and everyone of has the right to be, as you've been waiting on a

premium system being delayed time after time…”. Requests come immediately

Post 2/17-Sentiment shifts 60%+ & referring Lisa

*Issue has 35K views on forum w/ 600 replies

Page 22: EMEA Day at Dell 2010 - Customer Experience

Global Marketing | Social Media and Community

Listening and Response Engine

Customer

Customer Service & Fulfillment

Customer Service & Fulfillment

Product Group & Professional

Services

Product Group & Professional

ServicesCommunicationsCommunications Marketing & OnlineMarketing & Online SalesSales

Embed Responders and SMEs across critical parts of the organization to close loop w customer

Closed Loop Response EngineEarly Warning System

Drive for Root Cause ID

Storm Sessions / IdeaStormClosed Loop ProcessImplement Changes

Thank / Surprise / DelightCreate Movement

Brand Ambassadors

Page 23: EMEA Day at Dell 2010 - Customer Experience

Global Marketing

Communications Approach• Leadership

– Updates and key programmes to be communicated in all Town Halls and All Staff meetings

– Including updates on performance and projects

• Manager Toolkits– Enable them to understand and communicate –

what NPS is, why customer loyalty is important and how we are doing, what influence their team can have.

– Encourage to reward and recognise team members who are going the extra mile

• Individuals– Messaging, Performance Plans, WATD

Newsletter

Page 24: EMEA Day at Dell 2010 - Customer Experience

Global Marketing

Key Messages to Employees• We are ONE team that is united in

helping our customers grow and thrive.

• By working as one team - sharing information and collaborating between teams we can drive customer centric behavior and ensure our customers get the service and support they require to delight them and drive loyalty .

• Personal ownership is critical to the success of Dell and each of our actions are critical to ensure that customers have peace of mind for selecting Dell as their partner of choice and be willing to become Dell advocates.

Page 25: EMEA Day at Dell 2010 - Customer Experience

Global Marketing

Key Messages to Employees• Understand that each touch point of

a customer journey is critical and whatever team or function has a role to play. We are all links in this chain.

• Getting it right the first time is essential. Resolving quickly and faultlessly is the only way.

• Enjoying the role that each of us has to play in the customer journey is essential to the long term success of Dell.

Page 26: EMEA Day at Dell 2010 - Customer Experience

Global Customer Experience

WHYIS IT

IMPORTANT?• “Dell will go out of it's way to ensure the

customer is happy”

• “My experience with both Sales and Support has always been world class”

• “The products are excellent, but more importantly, the support behind them is exemplary”

• “Dell is the leader, period”

• “Dell has the best solutions for all your personal and business requirements. We use Dell exclusively for home, business and fun”

Page 27: EMEA Day at Dell 2010 - Customer Experience

Global Customer Experience

WHYIS IT

IMPORTANT?• Loyal customers spend more, refer

others & stay longer

• Drives employee engagement

Page 28: EMEA Day at Dell 2010 - Customer Experience

Global Customer Experience

IS NOT A METRIC,IT IS A

LOYALTY

PERMANENT WAY OF LIFE

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Page 29: EMEA Day at Dell 2010 - Customer Experience

Thank You