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Webinar slides from June 29th.
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“Fear of Feedback”Webinar 29 June 2011
Adam Dorrell
Robert Kerner, Director, Business Development CustomerGauge/Directness
11 April [email protected]
Agenda
• Reasons behind the “Fear of Feedback”,• Examples of best practice – world class companies doing it right• Using Net Promoter Score® as a measurement tool• Practical ways to deal with positive, negative comments, as well as
customer suggestions• Automated processes to help close the loop: strategic and tactical• Feedback on the feedback – examples of how to get back to
customers• Questions
What we do: Directness
• We provide software-as-a-service solutions to help companies add strong metrics to marketing activities
– CustomerGauge: Automatically measure, understand and analyse customer sentiment, using Net Promoter Score®. Identify and grow your most loyal customers.
– Recommendi: A free tool to help start your Net Promoter projects
• Trusted by global organisations– +1 million end-customers measured in 2011 so
far• Company background: hi-tech marketing:
Sony, Dell, Compaq, HP, KPN etc– Privately funded, based Amsterdam, NL
Consumers
B2b customers
Sel
ecte
d C
lien
ts
Feedback – what’s it all about?
• Feedback is something we get all through life
– School, parents, sports– 360s at work
• What do we do with it?– Negative or positive – how to react
• Act on it? Reject it? • Information• Choices• Accept, analyse positively, use for
future decision making (Joseph Folkman)
• Feedback is about opportunity• Sometimes it gets worse as you try
to improve…
So why the fear?
• Is there a fear?• No one likes to hear bad news• Common reactions:
– “It’s not my fault” / Defensive
– “It takes time to fix issues” / Extra work
– “It’s the way we always do it” / “Business as usual” stance
– “We always get complaints” / Complaints
– “I’d like to help, but I can’t…” / frustration with internal issues
– Legacy - Old memories
• Other reasons– Technically or logistically difficult– Long surveys turn off customers
and employees
Simple concept:
“How was it for you?”
Who is embracing feedback?
• Many companies survey:– Examples: Avis, Europcar, BA,
Hilton– Corporate initiative or cultural norm?
• Favourite examples of companies using feedback– USAA – changing products as a
result of feedback– Lego: closely working with
customers, designing product lines– Philips: packaging, delivery– Bavaria Film: changing company
culture– Apple Stores: “feedback as a gift.”
A good template for feedback
• Net Promoter® Score:– Simple 0 – 10 scale: “Would you recommend?”– Feedback “Why? Or Why not?”
• Open-source standard: Becoming a worldwide standard• Helps with a “Corporate language”
– Detractors, promoters– Grows a culture of feedback
http://customergauge.com/2007/05/2-minute-guide-to-the-net-promoter-score/ Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.
Make the survey short!
• Respect the customer’s time
• Keep it short• Use your CRM system to
help you segment customers beforehand– Customers hate telling you
information you already know.
• Aim for a high response: 25 – 50% of customers
Learning:
Fast Response / Empowerment
• Learnings from CE Company A:– Fast responses are more impressive than
delayed perfect fixes– Pro-active communication within 24 hours
(one business day) of customer response– Empowering agents to fix issues is less
expensive than complex escalations– Generally, agents “do the right thing” if trusted:
“what can I do to make it right for you right now?”
• Training issues, guidelines• Agents all tracked on NPS, goodwill• Relevant to your company:
– Push responsibility down the chain
The agent that I spoke to at the call centre was friendly, professional and helpful and talked me through various options to try to resolve this. Unfortunately the problem could not be fixed at this time but the agent transferred me to the internet customer service who quickly arranged for a replacement phone and for collection of the faulty one. This was delivered within the agreed time frame and the delivery driver was kind enough to wait for me to check the contents of the box (as advised by the XXXXXXX agent) which was appreciated…., I'm happy to say that I have received an excellent customer service experience regarding this issue with the faulty phone. (42095938)
Acting on Comments
Problems!Service issues
LogisticsReturns etc
SuggestionsService
Improvements
PraiseTestimonials
• Best practices:
• Get regular feedback so you can manage it: Daily/weekly is best!
• Classify comments to help prioritise issues
• GET COMMENts to the right people
• Act on customer feedback – within 24 hours
Logistics
FINANCE
WEB
Learning:
Spread the load of “fire-fighting”
• Key learnings from CE Company A: – Improvement happens when everyone is
involved. – Breakdown the NPS number by department– Ensure departments deal with relevant issues– Get comments/issues to right people– Team effort to clear issues
• Relevant to your company– Retail: Push comments out to stores, managers
to action– Call-centres: Assign comments to a group:
“hopper”. Track progress
Best Practice: Automatically Close the loop
• Make sure you respect the customers time
• Put in place systems to help you close the loop
• Keep your promises to customers “we’ll get back to you”
Segmenting Customers by NPS
Detractors cost money
Promoters are profitable
Learning:
Segmentation
• Learnings from CE Company B (limited call centre resource)– Not all customers are the same: 7% customers
drive 50% revenue. – Identify key customers early in process –
especially retention customers– Discounts not needed, but taking them
seriously is.• Find ways to delight them, ask opinions• VIP line in call-centre • “Thank you for your business” letters
– Empower senior agents (reward)– SWAT team for VIP issues (rescue)
• Relevant to your company:– Organise internally– Tag customers (or use CustomerGauge)
It took over a week to effect delivery to a retail store and communication was not up to the usual XXXXXX standard. I feel that XXXXXXX have been cutting corners recently and as a loyal (10 years) customer, I expect much better. 2799363.
On some current XXXXX blackberry deals, for the same monthly contract that i pay, customers receive 200 minutes, so why can't i receive the same deal. i have been a XXXXXXX customer for 13 years and have never ever changed to another supplier, so come on reward the people that remain loyal year after year.... 2766437
Quantify the feedback
• Organise feedback by “tagging” it
• Understand the weight of issues by value, impact on NPS, number of customers
• Can be done in a spreadsheet
• Or automated with tools like CustomerGauge
Publish the good news
• Use customer testimonials on external sites• Use internally• Thank customers – gets them involved!
Something to aim for…
• USAA insurance/bank
• NPS 87• 20 testimonials
a month– 300+ on website
*Source: http://www.bizjournals.com/sanantonio/news/2011/02/21/usaa-named-a-leader-in-customer.html#ixzz1Fdd7haXR
Lessons: Fear of feedback
1. Communicate the program – Opportunities for company to get better– Learn from customer, motivates staff
2. Fast is better – quick fix, acknowledgements– Respond in 24 hours
3. Proactive actions impresses customers– better planning time for you and call centre
4. Segment to prioritise and identify important issues– Use NPS to benchmark
5. It’s not extra work – customers will call in anyway– Or worse, they defect.– Automation is key to productivity gains
6. Thank customers, and go public– Actually make some improvements then tell them!
• Resources: [email protected]
http://recy.me/a1p8How did we do?
Thanks!
Learning 4:
Learning / Kaizen
• Best practice from CE Company C: Implement continual learning– Bi-weekly champions call with coach
• Simple: Count the number of “fire-fighting” activities by category – act quickly
• Advanced: Analyse customer comments, but do it later
– Ruthlessly prioritise worklist by customer feedback (NPS v. value v. Number Customers)
– Get comments out to non-operational teams– Short/medium/longterm issues –
monthly/quartely focus– Use Kaizen principles: Experiment to see what
works.• Relevant to your company
– Action on issues is key rather than analysis for perfect strategy
改善Kaizen: “change for the better”
…activities that continually improve all functions, and involves all employees from CEO to assembly line workers. Eliminates “Muri” (overly hard work). Encourage experiment using scientific method to eliminate waste.