Building a Loyalty! Robot

Transcription

1 Building a Loyalty! Robot Adam Dorrell CEO CustomerGauge 6 Nov 2013 Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.

2 CustomerGauge: Who We Work With Partial Client List

3 CustomerGauge

4 Net Promoter System! Standardized methodology for customer loyality measurement. Jak pravděpodobné je že nás na základě Vaší poslední zkušenosti doporučíte Vašim kolegům a známým? Výpočet skóre Kritici Pasivní Propagátoři NPS % propagátorů = (9 a 10) - % kritiků (0 až 6) Určitě ne Určitě ano SCORE + COMMENT Key advantages of NPS: Single value representing customer loyalty. Easy to compare in regional and industry context. Becoming standard indicator for Fortune 1000 companies Best companies / services: NPS > 75 (ie.apple, Amazon) Well run companies / services: NPS > 40 (ie. Sony, ING) NPS < 40 = low loyalty threatening growth without significant investments. Net Promoter, NPS and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld

5 The Net Promoter Score (NPS) Just one number Measure every transaction: Would you recommend us? Real time results Act on customer comments Change can happen monthly Download from:

6 Factors Net Promoter adoption Fear Factor SolutionS How to do it? Many web resources, books courses NPS is open source Lack of tools or resource Start small MailChimp + SurveyMonkey + Excel, plus some work Budget from EUR 50 Looks like hard work ($cost) for customer service Spread the load, make it daily routine. Rescuing customers = profit NOT cost No CRM data Start now! Use %Engagement as a metric AUTOMATE ON TRANSACTIONS Culture Change for company Communicate from top of company. Spread good news

7 Just One Question: How it looks Example on smart phone (50% responses) Invitation Survey Page 1 (NPS) Survey Page 2 (Comment and action)

8 Results

9 Comments

10 Lesson in Inequalities 95% of Guinness consumed by 5% of customers 5% OF GUINNESS DRINKERS Pareto Principle (80-20 Rule) 80% of revenue from 20% of customers 95% GUINNESS volume Source: Malcolm McDonald, CIM

11 Segment by value Customer Segmentation Value (spend, profit) $$$ 50% revenue $ 50% revenue Hi-spending customers LO-spending customers

12 Tool with real customer numbers 8% Customers 42% Sales Average Value % Customers 58% Sales Average Value 199

13 Segment by Loyalty Customer Segmentation DETRACTORS 0 6 Promoters 9-10 Also PASSIVE 7-8 Detractors Promoters LOYALTY (Net promoter score)

14 Tool Promoters +60% over average sale value 14% Sales Average Value % Sales Average Value % 64% Sales Average Value 274

15 Value & Loyalty Matrix Customer Segmentation Value (spend, profit) RESCUE REWARD LOWER PRIORITY Detractors Promoters Take actions to Rescue Key customers IN DANGER OF defecting & Reward Key customers who can help grow sale LOYALTY (Net promoter score)

16 Tool 7% Sales 1% customers % Sales 2% customers % Sales 5% customers 1500

17 Rescue How long to get back to a customer? You need a process Measure it Best clients <48hours Now is when customers want it A rescued customer is more loyal! Prioritise to top customers RESCUE

18 Survey Follow Up With Follow up Not followed up NPS NPS Workflow Response Time (hours) (9 days) 506 (21 days) How to boost your NPS: Follow up open cases! 11 points difference!

19 Engage Reach out to customers who are not responding You should be at 25%+ response rate Best clients at 50%+ Engaged customers: 2x value of non-responses Tell them what you are doing with feedback Prioritise to top customers ENGAGE

20 Revenue Accelerator: Engine 8% customers Dear Customer, Thank you for saying you would be likely to recommend us. sent to top promoters 2.5% of customers = 10,000 s sent REWARD Here is a gift from us for you: Coupons sent by to approx 10,000 customers. Typical campaign, spring 2013 $25 XYZ And something for 2 friends so they can try us too. $25 XYZ $25 XYZ Existing customer (upsell) New Customers (referral)

21 Building the Robot Automate surveying Respond to detractors quickly Thank promoters Communicate to customers RESCUE REWARD ENGAGE Working In real-time! Send comments to the right people in business

22 What s it worth? Rule of Thumb: Moving detractors to promoters really has impact Each 1% increase in NPS = 1% increase in revenue Most clients can move 1% NPS a month CustomerGauge resource sheet: Impact of Improving Net Promoter Scores on Average Order Value and overall sales

23 Summary Identify your most valuable returning customers Continually ask for feedback using Net Promoter Score methodology Rescue & Reward the most important customers Automate the process wherever possible: build a Loyalty Robot Make it part of your company s DNA use the best tools out there! Thank you

24 THANK YOU Adam Dorrell