Net Promoter Score: A Critical Number Your Business Needs to Know

Transcription

1 1 YouTube: Net Promoter Score: A Critical Number Your Business Needs to Know Holly Duarte NPS Manager Cummins Inc 1

2 The Golden Rule: The foundation of loyalty and NPS Loyalty \ˈlo i(-ə)l-tē\, noun 1. Giving or showing firm and constant support or allegiance to a person or institution 2. Support that you always give to someone or something because of your feelings of duty and love towards them 3. To put someone or something else ahead of one's self Sources: Oxford Dictionaries, MacMillan Dictionary, WikiHow.com 2

3 Loyalty Behaviors in Business 1. Repurchase 2. Buy additional lines 3. Referrals 4. Constructive Feedback Source: Fred Reichheld, Satmetrix Net Promoter Certification Course Loyalty Drives Growth Source: Bain & Company, NetPromoterSystem.com 3

4 Satisfaction and Loyalty Are Not the Same Source: Fred Reichheld, Bain & Company Satisfaction Studies Communicate the Wrong Message 4

5 Traditional Loyalty Measurement Complex cause-and-effect models with indices of multi-variable components Source: Emerald Insight The Ultimate Question How likely is it that you would recommend Company X to a friend or colleague? Source: Bain & Company, NetPromoterSystem.com 5

6 A Powerful, Yet Simple Metric Detractors Passives Promoters Not At All Likely Extremely Likely % of PROMOTERS (9s and 10s) % of DETRACTORS - (0 through 6) = NPS Source: Satmetrix NPS - the most widely adopted standard for managing the customer experience globally. Source: Satmetrix 6

7 Why Net Promoter? 1. Powerful metric 2. Simple to understand concept 3. Immediate feedback 4. A growing body of experience 5. Adaptability Sources: Bain & Company, Satmetrix Creating Promoters How Do We Do It? Head Value Proposition Exceeds Expectations Product features Quality Price Heart Delight Customers in a Personal or Emotional Way Know them Appreciate them Listen to them Share values Source: Satmetrix 7

8 Net Promoter is Not Just a Score it s a system Customer takes survey Customer Strategic Closed Loop Communications Operational Closed Loop Employee Alert to Action Owner Strategic Planning and Investment Decisions Organizational Learning and Aggregate Results Source: Satmetrix Types of NPS Surveys Based on your recent experience, how likely are you to recommend us to your friends and colleagues? Relationship Surveys Measures experience annually over the lifetime of a customer Measures the experience with overall value package How likely are you to recommend us to a business associate or colleague? Transactional Surveys Measures experience immediately following an individual touch point within the overall customer corridor, or a series of touch points Market Sell Design Order Fulfill Service Pay 16 2/14/2013 Cummins Confidential 8

9 Benefits of Relationship vs Transactional Relationship: Basis for driving cross functional strategic priorities to improve the overall customer experience Provides insights to make value-based decisions on customer investments Transactional: Real-time data provides the ability to spot trends or emerging problems Drives a customer-centric culture - difficult to ignore when customers tell you every day what you do right and wrong Cummins Inc SALES / EARNINGS In 2011, Cummins earned $1.75 billion on sales of $18 billion. 9

10 The Cummins NPS Program Launched in 2009 Over 85,000 customers surveyed in 2012 Relationship program Targets strategic customers in all Cummins businesses Sample includes decision makers and influencers Surveys include NPS question and 10 loyalty driver questions Surveys conducted via phone and in 17 languages Transactional program Targets customers involved in the service or parts transaction (distribution only) Surveys are brief with the NPS question and 5 additional questions Surveys conducted via phone in 30 languages across 6 continents Cummins NPS Program Structure Program Office Leads corporate program strategy Provides guidance and establishes NPS standards Leads corporate NPS communication and training Administrates NPS survey software platform NPS Business Leaders Represents NPS business needs to program office Leads sampling strategy, survey execution, data analysis, and prioritization of improvements Leads communication and training within business segment Champions Supports NPS initiatives within respective sub-business segment Program Office NPS Business Leaders Champions 10

11 Cummins NPS - What s Next Continue to enhance our NPS process effectiveness and efficiency to create superior customer experiences Collect peer group performance to determine relative NPS Link Customer NPS to financial returns Understand connection between loyal customers and loyal employees Implement new transactional surveys for critical customer touch points Customer Care transaction Global Logistics product delivery transaction Key Points Customer loyalty (not satisfaction) drives profitable organic growth NPS has proven to be an effective measure of customer loyalty The simplicity of NPS helps motivate the entire organization towards a singular goal more promoters The incorporation of NPS feedback into closed loop processes drives improvement and innovation With NPS growing in popularity, organizations can learn from a growing body of experience 11

12 Questions? 12