MIRACLE-EAR CUSTOMER EXPERIENCE SURVEY PROGRAM

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1 MIRACLE-EAR CUSTOMER EXPERIENCE SURVEY PROGRAM 2014 Miracle-Ear, Inc MANL/F

2 Table of Contents Miracle- Ear Customer Experience Survey Program... 3 Customer Experience Management... 3 Net Promoter Score (NPS)... 4 Promoter, Passive, and Detractor... 5 Miracle- Ear Customer Surveys... 6 Personal Invitation via e- mail... 6 Miracle- Ear Survey Samples... 7 Annual Survey... 7 Touch Point Survey: Purchase... 8 Touch Point Survey: TLNS... 9 Customer Experience Management: Closing the Loop with Customers The Value of Closing the Loop with Your Customers Leveraging Your Promoters The Power of Service Recovery Satmetrix Alerts & Dashboard Tracking Detractor Alerts Click- through Access to Satmetrix Dashboard My Actions Tab Take Action, Take Ownership Miracle- Ear, Inc. 2 Customer Experience Program 2015

3 Miracle- Ear Customer Experience Survey Program Customer Experience Management Creating and maintaining customer loyalty is a key driver of the financial success of any business. Asking for customer feedback to understand customers experiences, from their perspective, helps to develop business practices that will create and sustain loyalty of your customer base. In this growing age of social media, a unique and positive customer experience delivered consistently is a driving force for a profitable business. Ideas & Notes: 2015 Miracle- Ear, Inc. 3 Customer Experience Program 2015

4 Net Promoter Score (NPS) The Net Promoter Score (NPS) is a business metric that was developed through over 30 years of research and study by the Bain Group, a consulting firm out of Boston, MA. Fred Reichheld, the lead researcher and author of many books on the subject of NPS, continues to be an expert and active researcher in this field. NPS is calculated from customers responses to a single question regarding their Likelihood To Recommend (LTR) others to the business. Each segment of customers, Detractor, Passive, and Promoter, has a unique effect on business results financially and operationally. In general, Promoters are more profitable customers for any business. Ideas & Notes: 2015 Miracle- Ear, Inc. 4 Customer Experience Program 2015

5 Promoter, Passive, and Detractor Understanding the effect each type of customer has on the business is important. Developing behaviors and practices that increase the potential of Promoters, decrease the likelihood of Detractors.Moving Passives into the Promoter category is the goal of your team. Ideas & Notes: 2015 Miracle- Ear, Inc. 5 Customer Experience Program 2015

6 Miracle- Ear Customer Surveys The current Miracle- Ear Customer Experience Survey Program includes three customer surveys targeting different points of experience throughout the customer s journey with Miracle- Ear. They are: Annual Survey (RelaQonship) Current Customers Purchased greater than 6 months; up to 5years. Sent Monthly Open for 30 days NPS Metric is calculated from these responses Purchase Survey (Touchpoint) Current Customer New Purchase 9 Weeks aeer delivery appt Sent Weekly Open for 14 days TLNS (Test, Loss, No Sale) Survey (Touchpoint) TLNS Outcome Tested, Fifable Loss, no sale No appt next 28 days Sent daily Open for 7 days As described above, the Annual Survey asked the LTR question and the NPS is calculated from these responses. Though different, but just as important, our current touchpoint surveys request overall satisfaction of our customers based on a specific event or appointment. Monitoring these metrics can help a business understand both positive and negative trends with the customer experience being delivered and make appropriate adjustments in a timely manner. Personal Invitation via e- mail Each customer sampled for a particular survey receives an e- mail invitation to provide feedback. A sample of the message is shown here. Once the customer clicks into the survey link, he or she will be asked to complete a short series of questions and offer open comments regarding his or her experience with Miracle- Ear Miracle- Ear, Inc. 6 Customer Experience Program 2015

7 Miracle- Ear Survey Samples As mentioned previously, Miracle- Ear has implemented three different customer surveys. 1. Annual Survey As described earlier, customers that receive the Annual Survey are asked the Likely to Recommend (LTR) question that is used solely in calculating the Net Promoter Score (NPS) Metric. The questions below are only shown to the customer if the answer to the hearing aid question is in a detractor range (0-6) Miracle- Ear, Inc. 7 Customer Experience Program 2015

8 2. Touch Point Survey: Purchase 2015 Miracle- Ear, Inc. 8 Customer Experience Program 2015

9 3. Touch Point Survey: TLNS The same questions in the Purchase Survey are asked (see above) with the exception of the added question below. Ideas & Notes: 2015 Miracle- Ear, Inc. 9 Customer Experience Program 2015

10 Customer Experience Management: Closing the Loop with Customers As was stated previously, asking for customer feedback to understand the customer s experience, from his or her perspective, helps to develop business practices that will create and sustain the loyalty of your customer base; however, it is only the first step. The action taken by the business in response to customer feedback is a critical component of building a positive relationship with a customer, whether the initial feedback is positive or negative. This is referred to as, Closing the Loop. The Value of Closing the Loop with Your Customers Taking timely and appropriate action based on customer responses is often a missed opportunity in many business environments yet, it is most likely one of the most important. NPS is a metric used to monitor the behaviors and discipline that create the best customer experiences. If, however, no action is taken to engage customers in all three segments related to their responses, the action of requesting customer feedback is wasted. The ultimate goal of the business is to improve business outcomes. In the following sections, our focus will be on the first three steps of closing the Operational Loop. At present, the Miracle- Ear focus is on specifically closing the loop with Promoter and Detractor customers; however, same best practices discussed here can be implemented with Passive customers as well Miracle- Ear, Inc. 10 Customer Experience Program 2015

11 Leveraging Your Promoters Promoter Notifications Each franchise business owner or key manager will receive an e- mail notification when a customer responds in the promoter range (9 or 10) in answer to the Likely to Recommend (LTR) on the Annual Survey or the Overall Satisfaction question on the Purchase or TLNS surveys. These notifications are sent in real time; approximately 4 hours after the customer has submitted the response. Upon receiving the Promoter Notifications, it is recommended that the customer be contacted to thank them for taking the time to provide feedback. This may also be an opportunity to ask for referrals or a testimonial. This personal gesture from the owner or key manager acts to further strengthen the loyalty and satisfaction of this customer. Promoter customers have a postive effect on a business profitablility. Promoters consistently: Drive down customer acquisitions costs Are usually less price sensitive 2015 Miracle- Ear, Inc. 11 Customer Experience Program 2015

12 These Promoter Notifications can also represent an opportunity for the franchise business owner or key manager to: Thank the staff that created the Promoter Customer Experience Encourage similar behaviors again and at other locations Improve morale by communicating these positive experiences within the business with immediacy Ideas & Notes: 2015 Miracle- Ear, Inc. 12 Customer Experience Program 2015

13 Promoter Mobilization on Facebook When customers respond to the LTR or Overall Satisfaction question in the Promoter range (9-10), they will be invited to share their comments on their personal Facebook page. Approximately 20% of all of our Promoters have been sharing their positive comments on social media through Facebook. Ideas & Notes: 2015 Miracle- Ear, Inc. 13 Customer Experience Program 2015

14 The Power of Service Recovery 23% of memorable satisfactory encounters had an initial failure. Key Reasons Service Recovery is Important* Complaining customers that take the time still have some confidence in the organization. Complaining customers are allowing us to hear what their concerns/problems are, which gives us the opportunity to resolve them, with the hope they will come back in the future to use our services again. Bad news travels faster than good news. Information received from customer complaints is impossible to get from any other source. *Resource: A Complaint is a Gift by Janelle Barlow & Claus Moller 2015 Miracle- Ear, Inc. 14 Customer Experience Program 2015

15 Satmetrix Alerts & Dashboard Tracking Your Satmetrix Dashboard provides you with details from detractor alerts in the My Action Tab and Detractor Alerts Tracking. Alerts are sent to either franchise business owners or key managers in real time (within 4 hours of customer submitting response). Detractor Alerts An alert, such as the example below, will be triggered for any Likely to Recommend or Overall Satisfaction response submitted by a customer that is in the detractor range (0-6). Instructional recommendations are included with each e- mail message, as seen below. It is critical that this initial contact and possible additional follow- up be made by someone other than the person or people who may have been the root or possible cause of the issue. The Detractor Alert deserves an escalated response from the business. This indicates to the customer that his or her feedback is important. Ideas & Notes: 2015 Miracle- Ear, Inc. 15 Customer Experience Program 2015

16 Click- through Access to Satmetrix Dashboard Basic details of the detractor response are included in the body of the e- mail. To review the full survey response, a link is provided in each e- mail to the Satmetrix Dashboard log in. Ideas & Notes: 2015 Miracle- Ear, Inc. 16 Customer Experience Program 2015

17 My Actions Tab Access to Detractor Alerts is also available to the assigned Action Owner through the My Actions tab on the Dashboard Miracle- Ear, Inc. 17 Customer Experience Program 2015

18 Take Action, Take Ownership It is the responsibility of the action owner, either the franchise owner or the key manager, to: Coordinate action Make initial contact the customer Document discussion & action plans Follow- up with customer to confirm resolution achieved Oversee a 2 week (maximum)turn- around response time, from the alert e- mail to implementation of a resolution with the customer. As has been discussed in previous sections, closing the loop with customers based on their feedback is an important piece of creating better business outcomes. By following the simple steps outlined in each alert e- mail, a line of communication will be opened with the customer that will prove invaluable. The Initial Call Here are some best practices to keep in mind when contacting a detractor. 1. Do NOT use internal language such as detractor, NPS, etc. 2. Phone first and leave voic and follow- up if no answer 3. A second attempt after 5 days should be made to reach the customer 4. Initial contact is to acknowledge feedback, thank, understand the situation, LISTEN, and set up next steps FIRST CALL OBJECTIVES: You are NOT expected to resolve the issues. You are trying to get to the root cause of the customer s pain. Just listen. The customer needs to feel heard. If you CAN resolve the issue or concern immediately, DO SO If not, reassure the customer you will discuss it with your colleagues and come back to them within the next week or appropriate timeframe. Sample Statements Below are some sample phrases and statements that may be helpful in making some of the initial calls. It is important that the follow- up is sincere and in the spirit of listening to their issue and finding a solution. Thank you for taking the time to give us feedback. This is very helpful for our team to learn about issues to ensure you are getting the most value from us You mentioned Customer Service and poor products as areas where we missed expectations. Can you share more about what s been happening so I can help? Hi Simon, I m calling to follow up on the feedback you gave us on our Customer Experience survey conducted in January I know you have mentioned specific problems (xxx), I just wanted to say thank you for being so open and honest with your feedback. We are eager to do as much as we can to resolve this issue. Please help me understand more about your situation. Do you have a few minutes to talk with me? 2015 Miracle- Ear, Inc. 18 Customer Experience Program 2015

19 Tracking Detractor Follow- up While use of this action tracking tool on the Satmetrix Dashboard is not required at this time, we are recommending its use so that you can benefit from the value of tracking service recovery, continued engagement with our customers, and ultimately increasing loyalty and likeliness to recommend (LTR) among our Miracle- Ear customers. In the Current Follow- up tab of the customer response, the available actions are: 1. Re- assign the follow- up ONLY to another Satmetrix user 2. Change the status from Open, In Progress, or Closed. Once closed, the issue will no longer be visible on the Action Tab. 3. Change the Date of action, if needed, as the date defaults to current date Use the comment section to describe the action plan to provide a solution to the customers concerns Miracle- Ear, Inc. 19 Customer Experience Program 2015

20 5. All previously documented comments can be reviewed on the Follow- Up history tab. 5 The Importance of Closing the Loop Leveraging all feedback that is received from Miracle- Ear customers is critical to having a competitive edge in the market place. A consistent follow- up protocol can ensure issues are recognized, addressed, and resolved. Customers gain additional respect and confidence in the local business and brand when they are heard Miracle- Ear, Inc. 20 Customer Experience Program 2015