JPK

Gro

upOrganizational Intelligence Forum

June 16-17 • Boston, MA

Operationalizing Net Promoter

Move beyond just tracking your score

June 16, 1:00pm

Scott is a senior marketing executive with track record of driving strongbusiness results in B2C and B2B digital marketing. He’s held senior positionswith a number of leading organizations including, Constant Contact, Yahoo!,Hewlett-Packard, Ancestry.com and Intuit. Scott currently works at CrossBowGroup where he consults with a variety of industries and organizations using

data driven customer centric approach to lead generation / nurture,conversion, retention, engagement, loyalty, CRM, and growing LTV.

View presentation online at:https://jpkgroupsummits.com/attendee4

Scott Lehner – Crossbow Group, LLC

NPS As A Catalyst For Change

2016 Organizational Intelligence Forum Boston

Agenda

• Intersection of NPS and loyalty

• Measuring NPS

• Types of NPS

• The journey

• The “system”

• Path forward

Loyalty

“Loyalty is the willingness of someone —a customer, an employee, a friend — to make an investment or personal sacrifice in order to strengthen a relationship” Fred Reicheld

Customer loyalty drives business advantage

Buy more Provide ideas and

feedback

Stay longer Refer friends

Loyal customers

How to measure loyalty?

• They know me

• They value me

• They listen to me

• Best features

• Best service

• Best price/value

“Would you recommend us to a friend?”

Probes both dimensions of loyalty….

Head Heart

How to measure NPS®

Promoters Passives Detractors

10 9 8 7 6 5 4 3 2 1 0

Not At All Likely

Extremely Likely

% of PROMOTERS (9 or 10)

% of DETRACTORS (0 through 6)

Net Promoter Score®

_ =

How likely is it that you would recommend us to a friend?

Types of measurement

Relationship

• Overall relationship with customer

• Sample of existing customers

• Policies, product planning, customer call-backs

Experience Competitors

• Recent/specific customer experiences

• Existing customers at specific times

• Enhancements and redesigns, customer call-backs, employee coaching

• Competitive comparisons

• Customers and competitor customers

• Strategic decisions, rethink priorities

Goal Audience Actions / Plans

NPS® and company growth

Source: http://www.netpromotersystem.com/about/how-is-nps-related-to-growth.aspx

On average, an industry’s NPS leader outgrew its competitors by more than 2X Put another way: a companies Net Promoter Score® is a good indicator of its future growth

“Would you recommend us? Customer loyalty can be boiled down to this single question, resulting in the Net Promoter Score.”

“The Net Promoter Score is our key customer metric. This measure is widely regarded as a predictor of future growth.”

NPS of US & European sales & service reported as key performance data, alongside Net Income & Revenue.

NPS Index reported as key figure in annual Progress Report.

Companies are now sharing Net Promoter

goals externally

“(To) strengthen our customer orientation…we have introduced NPS as a company-wide, uniform standard.”

“In 2008 we moved from overall satisfaction to a new metric – Net Promoter Score.”

Where is the disconnect?

1 Jim Davies, Chris Fletcher, Kimberly Collins, et al., “Voice of the Customer: The Gartner CRM Team’s Perspective,” Gartner, June 10, 2010

90% of companies fail to follow up – regarding what action was taken as a result of voice of the customer feedback they received (1) - Gartner

Over emphasis on score / tracking

Customer feedback becomes siloed and is not shared across the org

Individual customers get lost within aggregate data

Ownership of NPS is blurred and employees are not empowered to act

NPS® journey

Wanderer Starter Practitioner Leader

Companies tend to follow a similar path and evolution Where are you?

• Customer loyalty not a priority

• No “recommend” question or buried

• NPS not understood or accepted

• Realizing need to rethink customer loyalty

• NPS accepted as new way forward

• Only Relationship score measured

• Customer loyalty is a top priority

• Processes in place to take action

• All mgmt and front line employees onboard

• Customer loyalty permeates culture

• Focus on creating Promoters and reducing Detractors

• All types of NPS measured

• NPS informs strategy

Framework for getting started

Identify Detractors and

Promoters

Shift focus from tracking a score to creating a diagnostic approach for improving the customer experience

Diagnose and understand

differences between segments

Enhance and change the customer

experience

Net Promoter System

Closed loop learning and action

• Feedback from specific customers • Individual and team learning • Immediate and granular actions

Inner Loop Outer Loop • Feedback from a variety of

sources • Organizational learning • Longer term, structural

improvements and policies (e.g., pricing, product, process, etc.)

Communicate

Follow up with select customers /

ID issues

Identify actions / ID root causes

Execute on actions /

dev. solutions

Analyze and share feedback and data

Communicate with employees

& customers

Inner vs. outer loops

Inner Outer

Feedback Granular Aggregated

Immediate Longer term

Who Front line staff Management

Learning Individual / team Organization / dept.’s

Action Quickly Longer term

Path forward

Diagnose Insights

Results

NPS®

1 Assess current situation

• Determine where you are

on the NPS “journey”

• Determine current

capabilities vs. ideal

state

• Tailor plan to customer

needs and org goals

2

3

Build foundational fact base

4 Expand / Optimize

Pilot/Early Implementation

Learning

• Execute customer research and

listening posts, competitors

• Understand/prioritize

drivers of promoters

and detractors

• Perform Journey

Mapping to identify

Moments That Matter

• Identify key improvement

areas and initiatives

• Determine goals and metrics

• Execute test plan and pursue quick wins

Understand environment

Understand customer

Gain momentum and wins

Drive deeper culture of advocacy

• Build out and optimize

improvement areas

• Consider broader people, process

issues (hiring, coaching, training,

recognition etc)

• Link loyalty and NPS to goals and

incentives as metrics gain

acceptance

Example actions

• Profile

• Ask for referrals Promoters

• Surprise and delight Passives

• Call them

• Pour through verbatims Detractors

• Thank them

• Examine scores by segment

• ID moments-that-matter Overall

Helpful tips

• Sponsorship

• Team

• Pick your spots

• Give it a rest

• Share

• Cruel to be kind

• Celebrate

What can you expect to gain

• Measurement of true loyalty and health of your customer base over time

• Identify the moments in the relationship with your customers that matter most

• Understand the drivers of Promoters and Detractors

• Closed loop process to learn and take action to drive continuous improvement

• Help understand the economic upside of creating more Promoters

Scott Lehner 925 989-3403 Scott_lehner@yahoo.com Scott.lehner@crossbowgroup.com