Were there any barriers to overcome in order to implement a Net Promoter program within your company? Did you have to make a case for the implementation internally? My guess is, ‘no’.
You may believe that, as the CEO of the company that co-created Net Promoter, I would be happy about that, but it’s actually a mixed blessing. It used to take leadership and courage to promote the idea of Net Promoter, so those early adopters did some careful, detailed thinking about the discipline but unfortunately, today, that’s often missing.
The problem is that Net Promoter is more than an item you cross off a list. Success with Net Promoter can improve the bottom line, but Satmetrix data indicates that only ten per cent of companies that implement it do so successfully.
Get the fundamentals right
It can be difficult to remain enthusiastic about getting the fundamentals of customer experience correct, but these do work. Customer Experience champions are able to:
- Access the necessary data at the right touchpoint from the right people at the right time;
- Segment their customer base;
- Ensure executives are looking at the big picture analytics;
- Establish the root cause; and
- Engage employees in closing the loop.
Too many companies neglect the basics, a trap that must be avoided. One great example of getting it right is Experian, the global information services company. Its Credit Services and Decision Analytics group has increased NPS by 66.3 per cent since then, and seen 15 per cent revenue growth since 2010.
Customer experience champions were willing to make bold, economic tradeoffs or investments in 2013. For instance, Elion, the largest telecommunications and IT services provider in Estonia, defied industry ‘best practice’ by focusing on loyalty and has seen revenue follow. Based on customer feedback, Elion unbundled its services and enabled customer self service on service changes. The company is now outgrowing the competition by 50 per cent, besting 40 per cent market share just seven years after entering the market.
Mobilise your promoters
One of 2013’s surprise elements has been the incredible power of securing customer advocacy, particularly on social media channels. A case in point: during a six-month period, Housemaster Home Inspections, a North American home inspection franchise system, identified 12,300+ Promoters and prompted more than 650 of them to share details of their positive experiences online. Total revenue was up 15 per cent a year after the program began, and franchisees mobilising promoters doubled their business in contrast to those who didn’t.
Companies had much more of a vested interest in employee engagement in 2013 than ever before. There’s an acute sense that winning with Net Promoter is an initial challenge in the hearts and minds of employees. In response to its Net Promoter findings, Safelite, the leading provider of vehicle glass repair and replacement in America, trained employees in delivering superior customer experience. Following the first year, the company’s revenue increased by £45M, and by £66M after the second.
Differentiate your service
Pricing has ceased to be a competitive weapon and service is swooping in as a huge differentiator because it’s the only other item remaining in the toolkit. At tw telecom, internet, and voice networking solutions, every employee can register customer complaints, as well as comments about unrelated areas of the business. The company’s Net Promoter work resulted in an astonishing 32 consecutive quarters of revenue growth and year-on-year revenue growth of more than seven per cent.
Richard Owen is CEO of Satmetrix.
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