How loyal are your customers?
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- Prosper Woods
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1 How loyal are your customers? The Net Promoter Score (NPS ) Introduction into the concept and measurement of the NPS incl. integration into Microsoft Dynamics CRM Short version
2 Agenda Introduction to NPS Implementing NPS evaluations Screenshots Example: integration into SAP CRM Example: integration into Microsoft Dynamics CRM
3 Introduction to NPS
4 Introduction why NPS? Do you know when a customer satisfaction survey was last conducted? how high the response rate was? which customer feedback this survey yielded and which measures were derived from this?... how it is ensured that these measures are also implemented in the long term? which of your customers are so impressed with your services/offers that they will in all likelihood (>90%) recommend these to friends or colleagues?... why this ultimate question is of strategic importance to your company's growth? , # 4
5 Introduction inadequate customer surveys Classic customer surveys do not offer satisfactory results for the development of a growth strategy based on customer feedback because many companies conduct many surveys that feature many questions the wrong customers often respond customers' concrete problems cannot be solved due to anonymity many surveys are merely marketing campaigns in disguise... there is little connection between surveys and economic success it is extremely difficult to compare surveys from different providers transactions and relationships are often insufficiently defined deception and manipulation distort the results , # 5
6 Introduction the functionality of NPS The ultimate question is posed: "What is the likelihood of company X recommending you to a friend or colleague?" Extremely likely Unlikely "Promoters" "Passively satisfied" 45%* of all customers 25%* of all customers "Critics" 30%* of all customers = 15 NPS *xx% sample values , # 6
7 Introduction the advantages of NPS NPS offers clear, simple formulation of questions and the following advantages: A connection exists between growth and NPS. Bain & Company has established in several studies that an increase in NPS by an average of 12 points leads to a twofold increase in the growth rate. Feedback on specific transactions not anonymous. Given that customers are actively asked for their opinion and therefore do not disappear into representative random sampling, it is possible to react accordingly. NPS offers the opportunity to rapidly implement ideas to enhance the customer orientation. Those asked provide feedback on concrete transactions, allowing for measures to eliminate shortcomings to be formulated rapidly and simply. No one benefits from giving dishonest responses , # 7
8 Introduction how is data recorded? NPS records data according to seven principles: 1 Only one ultimate question is asked 2 Only a scale (0 to 10) is permitted and retained throughout Taking the seven principles into account enables a solid starting point for assessment The right customers are addressed Compiled regularly with the financial data The employees responsible for the field are involved A simple, comprehensible system 6 Surveys are conducted without distortion to obtain reliable data 7 The connection between the values compiled and customer behaviour is safeguarded , # 8
9 Realisation of the NPS survey
10 Realisation of the NPS survey NPS procedure (relational/periodical) Following successful implementation of NPS in Microsoft Dynamics CRM, realisation of an NPS survey is supported by the following process, which is predominantly mapped by the system Plan Prepare Conduct Obtain feedback Analyse Plan the NPS survey: formulate texts for the invitation and reminder, objectives, time frame, etc. Create the NPS campaign in the system Prepare the forms (invitation/reminder) Select the target group based on the criteria defined and create the workflow in the CRM Conduct the survey (step 1 = invitation) Record and monitor responses Conduct the reminder campaign (step 2 = reminder) Conduct and monitor the feedback process Record further information within the scope of the feedback process Cluster the content Analyse all results Analyse individual results , # 10
11 Screenshots
12 NPS in SAP CRM 7.0 screenshot Example: NPS survey results in SAP CRM , # 12
13 NPS in Microsoft Dynamics CRM 2011 screenshot Example: report - NPS dashboard in Microsoft Dynamics CRM , # 13
14 Project approach
15 Project approach components of the technical solution The following components of the NPS package allow for an optimal solution in your CRM system. NPS surveys Creation of a survey with a scale of 0-10 incl. a free text field Processing of survey answers Transfer of the survey results to the data warehouse Automation of NPS surveys Definition of campaigns for automatic triggering of surveys based on pre-defined criteria Transfer of the NPS surveys sent to the data warehouse NPS results Elaboration of the business partner master data with specific fields for NPS results Transfer of the results back to the CRM system and saving under the business partner Components of the Net Promoter Score technical solution in Microsoft Dynamics CRM NPS analyses Making available of a report and analysis structure in the data warehouse Creation of 10 reports and an NPS dashboard , # 15
16 Project procedure overview NPS realisation Evaluation Technical conception Technical realisation in the CRM system Scope of services Preliminary discussions, process analysis, requirements analysis Blueprint conception for realisation in the CRM system Realisation in the CRM system (with pre-defined technologies, depending on the requirements) Workload dependent on the KPIs and analysis combinations (standard without changes: 2-3 days) Points critical to success Survey online instead of via Data migration survey -> system Linking of NPS results with existing analyses , # 16
17 Thank you for your attention! People Processes Technologies maihiro The essence of CRM , # 17
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19 Imprint Germany maihiro GmbH Osterfeldstr Ismaning near Munich T F Geschäftsstelle Hamburg Ruhrstr. 11A Hamburg T F welcome@maihiro.com Austria maihiro GmbH Tech Gate Vienna Donau-City-Str Vienna T F welcome@maihiro.com maihiro GmbH. All rights reserved. All the content of this document is the intellectual property of maihiro GmbH. This content may only be used and the intellectual property rights to the content may only be transferred with the written permission of maihiro GmbH. The content of this publication is made available by maihiro GmbH. It is non-binding, is intended for information purposes only and may be altered without prior notice. maihiro GmbH accepts no liability and offer no guarantee in relation to errors or omissions in this document. There shall be no further liability arising from the information contained in this publication , # 19
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