Post on 16-Jul-2015
BOS Advocamp 1
ADVOCAMP KEYNOTE
POWERING ADVOCACY WITH NPS
FRED REICHHELDCreator | Net Promoter System
#ADVOCAMP
BOS Advocamp 2This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
BOS Advocamp 3This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
Loyalty Leaders: Grow 2.6X competitor avg.
BOS Advocamp 4This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
Repurchase
Buy additional lines
Referrals
Feedback
1
2
3
4
Four Loyalty Behaviors Drive Growth
BOS Advocamp 5This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
Tools for managingProfit
Tools for managingLoyalty
Who is to blame?
BOS Advocamp 6This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
“The only way to grow a business is to get customers to come back for more and tell their friends.”
Andy Taylor, CEOEnterprise Rent-A-Car
“Hold on Fred—we like our survey…..”
BOS Advocamp 7This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
Net profitNet grrrrowth
Balance of power
BOS Advocamp 8This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
Supervisor Customer
Closing the Loop: by local supervisor
BOS Advocamp 9This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
Weekly Team Huddle
BOS Advocamp 10This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
The Elements of the System
• Reliable Metric (rank-ordering branches)• Closed Loop• Shrink Bad Profits• Know Economics (value of promoter)• Huddle (Voice/Vote)
BOS Advocamp 11This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
How likely is it you would recommend us to a friend?
10 9 8 7 6 5 4 3 2 1 0
% % NPS=
Extremely likely
Not at all likely
Net Promoter
BOS Advocamp 12This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
Why intent to recommend is such an important signal?
• Best features• Best service• Best price
Head
• They know me• They value me• They listen to me• They share my values
Heart
BOS Advocamp 13This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
Now: Net Promoter® Adopted by Thousands
Then
BOS Advocamp 14This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
100%
75
50
25
0
2004 2012 …20202006 2013
>50% Net Promoter Score Adoption
<5% Net Promoter System Adoption
Today
Net Promoter® Adoption
BOS Advocamp 15This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
Transformed Net Promoter Score into Net Promoter System (a way of doing business)
BOS Advocamp 16This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
“This is the best
customer relationship metric I’ve
seen”January, 2004
Jeff Immelt: CEO General Electric; Chairperson of President’s Council on Jobs and Competitiveness
BOS Advocamp 17This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
Brad Smith: CEO Intuit
“Thank goodness for Net Promoter. It provided a framework for thinking about—and managing in this social media world…
our teams call it the love
Metric.”Brad Smith, CEO
Intuit
BOS Advocamp 18This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
Tony Hsieh: CEO Zappos
“We use NPS every day to make sure we are wowing customers and employees.”
BOS Advocamp 19This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
Apple Retail Mission: Enrich the Lives of Customers and Employees (create promoters)
BOS Advocamp 20This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
Closing the Loop: Echoing Enterprise
Supervisor Customer
BOS Advocamp 21This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
ZipCar: Creating More Promoters with Frugal WOW
BOS Advocamp 22This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
Is it the cows?
BOS Advocamp 23This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
Second-mile Service
• Manager works front of store
• Help mothers with small children
• Umbrellas for rainy day
• Outdoor greeter at drive-through line
• Refresh Drinks
• Free celebration dinners for best customers
• Daddy date nights
• Valentine Dinner
• Alert for people who appear sad/lonely
BOS Advocamp 24This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
AirBNB
BOS Advocamp 25This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
Tuft & Needle
BOS Advocamp 26This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
How Tuft & Needle gathers NPS feedback:
BOS Advocamp 27This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
Bonobos-Pants that Fit
BOS Advocamp 28This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
BOS Advocamp 29This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
Graham Weston: Chairman & Founder
Why is this so
hard?
BOS Advocamp 30This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
The most common pitfalls
• Focus on the SCORE
• Unreliable score
• Linking incentives to customer feedback prematurely
• Waiting too long to establish the financial linkage
• Failing to build timely closed-loop feedback, learning and action process
• Failure to integrate NPS into the existing decision-making process/rhythms
• Fix detractors, but ignore innovations to delight promoters
• No system developed for ENPS
BOS Advocamp 31This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
How Reliable Is Your Score?
BOS Advocamp 32This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
The most common pitfalls
• Focus on the SCORE
• Unreliable score
• Linking incentives to customer feedback prematurely
• Waiting too long to establish the financial linkage
• Failing to build timely closed-loop feedback, learning and action process
• Failure to integrate NPS into the existing decision-making process/rhythms
• Fix detractors, but ignore innovations to delight promoters
• No system developed for ENPS
BOS Advocamp 33This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
Kmart – Sign in Window about NPS
BOS Advocamp 34This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
The most common pitfalls
• Focus on the SCORE
• Unreliable score
• Linking incentives to customer feedback prematurely
• Waiting too long to establish the financial linkage
• Failing to build timely closed-loop feedback, learning and action process
• Failure to integrate NPS into the existing decision-making process/rhythms
• Fix detractors, but ignore innovations to delight promoters
• No system developed for ENPS
BOS Advocamp 35This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
Converting a passive to a promoter increases customer value 3.4x (Retail Banking)
BOS Advocamp 36This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
The most common pitfalls
• Focus on the SCORE
• Unreliable score
• Linking incentives to customer feedback prematurely
• Waiting too long to establish the financial linkage
• Failing to build timely closed-loop feedback, learning and action process
• Failure to integrate NPS into the existing decision-making process/rhythms
• Fix detractors, but ignore innovations to delight promoters
• No system developed for ENPS
BOS Advocamp 37This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
Employees who deal directly with the customer are among the least engaged
BOS Advocamp 38This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
Really?
Employee NPS 0 Customer NPS 75
BOS Advocamp 39This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
Team matters
Employee
Customer
TeamSupport
BOS Advocamp 40This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
The rhythm of progress
BOS Advocamp 41This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
The rhythm of progress
BOS Advocamp 42This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
HuddleUp can sparq* the right conversations
*(Short Poll Asking the Right Questions)
BOS Advocamp 43This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
“Whole New Way of Thinking About Your Business”
BOS Advocamp 44This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
Life’s Balance Sheet
NPS 0 NPS 75
BOS Advocamp 45This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
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BOS Advocamp 46
ADVOCAMP KEYNOTE
POWERING ADVOCACY WITH NPS
FRED REICHHELDCreator | Net Promoter System
#ADVOCAMP