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Are you a Net Promoter?

Do you know what your customers say about you?. Are you actively listening?. Are you a Net Promoter?. Kevin Novak CEO and Founder 2040 Digital KevinNovak@2040Digital.com www.2040digital.com. What I Will Cover Today. The disruption of the Digital and Global World

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Are you a Net Promoter?

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  1. Do you know what your customers say about you? • Are you actively listening? Are you a Net Promoter? Kevin Novak CEO and Founder 2040 Digital KevinNovak@2040Digital.com www.2040digital.com

  2. What I Will Cover Today • The disruption of the Digital and Global World • The typical process of capturing sentiment • The Single Channel transforms to the Omni-Channel • The Member and Customer Experience • The concept of Active Listening • Net Promoter and ACSI

  3. The Digital and Global World • Today’s world is global, digital and connected….word of mouth is spread via twitter, facebook, email, text, online reviews, opinions and comments…. • Opinions and sentiment (whether positive or negative) about you, your organization, your brand spread in real time across all digital channels… • Mistakes, service interruptions and the like spread rapidly and in ways you never thought possible…

  4. Conversation is Everywhere

  5. And Traveling Instantly

  6. INFLUENCE • Customers now have a variety of channels by which to share their opinions… I think this can be the person shouting into a megaphone

  7. REACH

  8. The Global and Digital World • Are you ready for your organization to be in the connected environment? • Are you changing how you interact with your customers? How you collect and measure their sentiment about you? • Have you begun your digital transformation to ensure your organization is adapting in this new world?

  9. The Single-Channel World • Yesterday: • Single Channel (in person/phone) • Siloed, Tactical and Operational • Yearly Surveys • Always looking backwards • Reacting

  10. Our Filters • Human Behaviors • Memory • Forgetting • Context • Change

  11. High-touch to Low-touch High Touch to Low Touch

  12. Member and Customer Experience • Every organization wants to grow and have financial success. • In order to do that, you need to drive your customers to exhibit behaviors that match those financial goals. • You need them to convert, to be loyal and to recommend your brand to others. You need them to become “Promoters”. • On the other side, you need to model how you are managing the experience to drive those behaviors. • Elements of you digital experience need to meet the expectations of your customers.

  13. The Customer Experience

  14. The Customer Experience

  15. Institutional Knowledge • Institutional Knowledge • We know the Market • We know our Members • We know our Customers • Product and Service Creation w/o Member/Customer Input • We already know what they want from us • We reviewed last year’s survey results • We don't need to engage them in our product and service development

  16. Falling Down the Rabbit Hole

  17. The Omni-Channel World • Today and Tomorrow • Omni-Channel • Mobile, Social, Web, Phone, Email, In Person, Interactive, Far-Reaching, Live and Fast • Capture/Measure the “Voice”of the Member/Customer • Integrated, Strategic, Predictive and most of all Proactive… • Solve the small problems before they grow to be larger

  18. The Omni-Channel World A recent Harris Interactive study shows that 63 percent of consumers who encounter a bad mobile experience from a brand also believe that organization will not meet their expectations across all channels beyond mobile such as Web and bricks and mortar.

  19. LISTEN

  20. RESPOND LISTEN Company Overview February 2014

  21. IMPROVE RESPOND MEASURE LISTEN

  22. What are your Options? • Active Listening: Technologies, Approaches and Methodologies

  23. Net Promoter Score • The Net Promoter Score, or NPS®, is based on the fundamental perspective that every company’s customers can be divided into three categories: Promoters, Passives, and Detractors. • By asking one simple question — How likely is it that you would recommend my company to a friend or colleague? — • Members/customers respond on a 0-to-10 point rating scale and are categorized as follows: • Promoters (score 9-10) • Passives (score 7-8) • Detractors (score 0-6) • To calculate NPS, take the percentage of members/customers who are Promoters and subtract the percentage who are Detractors.

  24. Net Promoter Score Gold Standard to transform customer experience into profitable growth http://www.youtube.com/watch?feature=player_embedded&v=bH242Nc5GHA#!

  25. Net Promoter Score How likely are you to recommend us to a friend or colleague? 0 1 2 3 4 6 7 8 10 5 9 Detractors Passives Promoters NPS = % Promoters - % Detractors

  26. NPS Program Goals • Assess Member/customer Satisfaction, Retention, and Engagement • Recover Detractors • Mobilize Promoters • Drive Accountability • Uncover Insights

  27. HOW THE SCORING WORKS - PROMOTERS Promoters (9 or 10) • Promoters are loyal, enthusiastic fans. • They sing the company’s praises to friends and colleagues. • They are far more likely than others to remain members or customers and to increase their purchases over time. • Moreover, they account for more than 80 percent of referrals in most businesses. • They are, in general, pleasant for employees to deal with.

  28. HOW THE SCORING WORKS – PASSIVES Passives (7 or 8) • We call this group “passively satisfied” because this group is satisfied—for now. • Their repurchase and referral rates are as much as 50 percent lower than those of promoters. • Their referrals are likely to be qualified and less enthusiastic. • Most telling: if a competitor’s ad catches their eye, they may defect.

  29. HOW THE SCORING WORKS - DETRACTORS Detractors (0 to 6) • Detractors are unhappy members or customers. • They account for more than 80 percent of negative word-of-mouth. • They have high rates of churn and defection. • Some may appear profitable from an accounting standpoint, but their criticisms and bad attitudes diminish a company’s reputation, discourage new members/customers and demotivate employees.

  30. Two Core Insights You Want to Learn • Are Your Members and Customers: Promoters, Detractors, or Passives? • Action Step: Send out one question to members and customers, “How likely are you to recommend Your Company to a friend of colleague?” 2) Why? • Action Step: Pose diagnostic questions • Ask the Detractors, “What’s one thing we can do to improve?” • Driver questions: Reveal items that have the biggest impact on score. • Ask Promoters, “What do you like most?” This will provide genuine voice-of-the-customer feedback.

  31. Member/Customer Retention • Rescue and close the loop with at risk members and customers • Identify those that are at risk of deflecting in time and pull them back into the fold • Facilitate increased word of mouth from member and customer fans • Identify the innovations members and customers value most • Identify the trends behind the numbers – verbatim analysis of open-ended comments • Loyal clients can bring in 80-90% of positive referrals.

  32. Member/Customer Engagement • Measure and ensure you have good member and customer engagement • Engage existing members and customers as sustainable engines for growth • Identify most loyal members and customers and single them out for referrals, up-sells, and continued renewals • Create brand advocates and activate promoters

  33. RECOVER – MANAGING DETRACTORS80/20 Rule • Prioritize and take advantage of the 80/20 Rule • Focus on high value: who responded 5’s and 6’s. • Low Value 0’s are difficult to rescue and requires tremendous resources • Set sights realistically

  34. Converting Feedback into Action

  35. ACSI/Word of Mouth Index • Survey Tool • Foresee Results • A Satisfaction Measurement tool across used all Industries • Based on methodology created at U. Michigan • Core and open ended questions • Calculates “Most likely to recommend” and categorical/overall satisfaction rates • 1 statistical sampling per month = (150+ respondents) • Reporting is ad-hoc, monthly and quarterly

  36. ForeSee/ACSI Options • Session Replay: • Captures real user sessions for later viewing • Allows organization to “see” what user has experienced and correlates to what comments a user shares • Allows for “Active Listening” mechanism to determine engagement, reach and member/customer experience satisfaction

  37. Food for Thought Utilizingmulti-channel real time sentiment capture and predictive analytics in the measurementandanalysis of the customer experience radically changes the way critical investment decisions are made and increases your satisfaction and revenue!!

  38. Results • Active and ongoing “Listening” to members and customers • Pro-Actively address and tweak “bumps” • Continue to enhance overall “member/customer” experience • Introduce Products and Services that resonate and meet market demand • Demonstrate youare doing things differently and are engaging

  39. More Information • Companies using NPS: http://www.netpromotersystem.com/about/companies-using-nps.aspx • Net Promoter Blog: http://www.netpromotersystemblog.com • Fred Reichheld, director emeritus and fellow at Bain & Company, is the bestselling author of The Loyalty Effect, Loyalty Rules (Net Promoter System) • Customers Included Phil Terry and Mark Hurst • Foresee Results and the ACSI Survey: http://www.foresee.com • Information on Wikipedia: http://en.wikipedia.org/wiki/Net_Promoter • Bain and Company

  40. 1/3 March 25, 2014 Desktop Location = Work Time = Daytime TRAFFIC 1/3 TRAFFIC Tablet Location = Home Time = Evening 1/3 Time = Weekend TRAFFIC Phone Location = Both Time = Both Time = Weekend

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