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Drive Satisfaction to Advocacy
Fred Hollowood
NPS Driving advocacy in the enterprise
Competitive Positioning
Pricing
Products and services
Customer Experience
Access to products and service
Customer Service
NPS Driving advocacy in the enterprise 2
Satisfaction
NPS Driving advocacy in the enterprise 3
Measuring Satisfaction is a start
Look for loyalty
Dilbert, Copyright ©United Features, Inc.
Improving Customer Loyalty
Increased customer retention
Lengthened customer retention
More products per customer
More customers
Cost of servicing may drop
Customer referrals
Loyal customers are less price sensitive
NPS Driving advocacy in the enterprise 4
How to measure Loyalty and Advocacy?
Listening to customers is important
So is asking the right question
What is the business E=mc2 question?
NPS Driving advocacy in the enterprise 5
www.theultimatequestion.com
Dilbert, Copyright ©United Features, Inc.
Play the NPS Customer Game
Your favourite bar
Your favourite drink (just poured)
Ultimate Question
“How likely are you to recommend your pub to a friend or colleague?” Score 0 – 10
NPS Driving advocacy in the enterprise 6
Net Promoter Score
NPS Driving advocacy in the enterprise 7
PromotersDetractors
Reduce the Detractors:• Fix the broken parts
• Call downs
Reduce the Detractors:• Fix the broken parts
• Call downs
Customer First : Branded Experience
Promoters
Detractors
• Create more Promoters • Deliver a differentiated and
consistent brand experience
• Create more Promoters • Deliver a differentiated and
consistent brand experience
Three Customer Clusters
Promoters – Those customers who have the highest rates of repurchase and referral, and will be advocates for your business
Satisfied – Passively satisfied customers stay with a particular company more due to inertia than true loyalty
They would move for a better deal
Detractors – Those customers (or employees!) who spread negative word-of-mouth comments about the company
Negatively impacts company’s reputation, ability to attract new customers and employee morale
NPS = % of Promoters - % of Detractors
NPS Driving advocacy in the enterprise 8
9 and 10 0 to 6
What is the norm out there?
The average Net Promoter Score across over 400 companies in 28 industries is just 16%
Top performers out there have an NPS of 75-80%
Harley Davidson 81%
Amazon 73%
Apple 66%
NPS Driving advocacy in the enterprise 9
Source: Bain, the Ultimate Question
On to Loyalty and Advocacy
Know what matters to your customers
Know how you stack up on these measures
Do something to fix them
Possible measures
NPS Driving advocacy in the enterprise 10
Drivers of satisfaction Perceived value
Service level satisfaction Competitiveness of fees
Product level satisfaction How well you listen
Importance vs satisfaction The “closeness” of your relationship
Likelihood to recommend Likelihood to transact
Likelihood to extend the relationship Relationship strength
NPS Case Study in Symantec
Not only have they achieved over 50% increase in their Net Promoter Score (NPS)……but they have seen improvements in areas such as support satisfaction, support costs, and call efficiency.
Taking action on feedbackReduce install failure rates from 11% to 0.3%
Improve installation performance 500% to achieve 43s
Improve performance and reduce memory usage from 80Mb to 4Mb
Common metric creates collaboration between departments to improve customer experience and increase loyalty
30% reduction in support costs
10-12% reduction in call times
NPS Driving advocacy in the enterprise 11
Source: Satmetrix Symantec Case Study.
Thank you!
Copyright © 2010 FRED Hollowood CONSULTING . All rights reserved.
This document is provided for informational purposes only and is not intended as advertising. All warranties relating to the information in this document, either express or implied, are disclaimed to the maximum extent allowed by law. The information in this document is subject to change without notice.
NPS Driving advocacy in the enterprise 12
Fred [email protected]