v4 nps training - amazon web...
TRANSCRIPT
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Presented by: Marybeth Alexander
Support Goddess/Director of Customer Happiness
& Melissa Langworthy
Training Phoenix, Ph.D.
What is NPS?
Example Question Calculating the NPS Score
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• Promoters (9s and 10s) • Raving fans • Fuels growth • Likely to refer
• Passives or Neutrals (7s and 8s) • Passively satisfied • Vulnerable to competition • Unlikely to refer
• Detractors (0s – 6s) • Unhappy campers • Very unlikely to refer • Impedes growth
Promoters, Passives, Detractors
-100 100
Everyone is a detractor LLLLL LLLLL
Everyone is a promoter JJJJJ JJJJJ
0
Equal number of promoters and detractors JLJL
50
-50
Good
Excellent
NPS and Your Customers
The research behind NPS
2003
The Ultimate Question
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Fred Reichheld, Bain & Company, and Satmetrix researched 4,000 customers on a variety of survey questions and actual customer behaviors like repeat purchases, recommendations to friends and colleagues, and retention.
A Short History of NPS
In 11 out of 14 industry case studies, likelihood to recommend was the top question to predict actual customer behaviors.
A Short History of NPS
Figure 2 illustrates the frequency with which each of the different loyalty questions emerged as the top correlate to actual behavior when testing these links across six different industries.
Recomm
end
Deserve
s Loyalt
y
Con3nu
e Buying
Sets Sta
ndard f
or Exce
llence
Easy to
do Bus
iness W
ith
Choose
Again fo
r 1st Tim
e
Offers In
nova3v
e Solu3o
ns
Overall
Sa3sfac
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Figure 2. Top Ranking Correlates to Customer Behavior
100%
80%
60%
40%
20%
0%
• To test NPS, Bain teams calculated the NPS of the major players in a number of industries and compared it to financial growth.
• They found a strong correlation between Likelihood to Recommend (LTR) and financial growth.
• On average, Net Promoter leaders grew at twice the rate of their competitors.
Likelihood to Recommend
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Industry NPS Averages
2011 2006
The Sequel
Why use NPS?
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• Simple • Easy to use • Great for quick feedback • Used by many amazing companies • Open source • Flexible
Why use NPS?
• Customer retention • Higher margins • Higher customer spending • Better cost efficiency • Greater word of mouth • Happier employees
But wait! There’s more!
What makes a good personal referral? They must believe that the company offers superior value in terms that an economist would understand – price, quality, function, ease of use, features. They must believe that the company knows and understands them, values them, listens to them, and shares their principles.
Personal referrals Good Profits v. Bad Profits
$ $ $ $
$ $
$ $
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Two major tasks – Focus on customers and inspire
employees.
Managing your NPS Getting Started
1. Companies must systematically categorize promoters and detractors in a timely, transparent fashion.
2. Companies must create closed-loop learning and improvement processes and build them into daily operations.
3. CEOs and other leaders must treat creating more promoters and fewer detractors as mission critical.
NPS – 3 Essential Elements NPS – 3 Essential Elements
Follow up with all responses, especially detractors, if you have the respondents contact information.
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• Top-down NPS (10-30 questions)
– Conducted using a double-blind study
– Compares major competitors across and industry
– Used for relative performance and aggregate patterns
• Bottom-up NPS (2-3 questions)
– Sponsored by the company
– Individual customer tracking
– Transactional or Periodic (“Relationship”)
Types of NPS Surveys
1. Ask the Net Promoter question: On a scale of 0 to 10, how likely are you to recommend
x to a friend or colleague?
2. Ask one simple follow up question: Why?
3. Follow up with all detractors within 24 hours.*
*Depending on your customers, you may want to also ask for permission to follow up.
Implementing Bottom-up NPS
1. Ask qualifying questions.
2. Ask the Net Promoter question: On a scale of 0 to 10,
how likely are you to recommend x to a friend or colleague?
3. Ask the follow up question: Why?
4. Ask additional questions about the product, service, or
brand.
5. (Optional) Ask additional questions about the customers behaviors.
6. Ask any questions necessary for segmentation.
Implementing Top-down NPS
• Easily understood – Grades in school
– Metric System
– Olympic Perfect “10”
• I don’t give perfect scores
• 1-10 can cause confusion – We’re #1!
– Zero is always the lowest score
– Pain scales and Apgar
• Fewer points ignore differences in customer behavior
• Lots of people use 0-10
Why use a 0 to 10 Scale?
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NPS in SurveyGizmo
Question Type: Net Promoter Score
• Predesigned SurveyGizmo question
– Single select, Likert Scale, options 0-10
NPS in SurveyGizmo
Question Type: Net Promoter Score
• Customized reporting calculates NPS
NPS in SurveyGizmo NPS in SurveyGizmo
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Our Customer Service Survey About the Customer Hero
Likelihood to Refer Questions Other Follow up Questions
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Send Email Actions Summary Reports
Product Survey About the Product
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Likelihood to Refer Send Email Action
Product Survey: NPS Score Employee NPS Survey
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Likelihood to Refer Questions Employee NPS Survey
More ways we use NPS
• Webinars and in person trainings
• Professional Services projects
• Usability Testing for the website and application
• Management feedback surveys
• Bottom-up relationship survey (in progress)
• Top-down survey (soon…)
Employee NPS Survey
Thank you for watching!
Have questions or comments?
Please share your feedback with us below!