BUILDING A CUSTOMER-CENTRIC CULTURE: … · This information is confidential and was prepared by...
Transcript of BUILDING A CUSTOMER-CENTRIC CULTURE: … · This information is confidential and was prepared by...
This 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 1
BUILDING A CUSTOMER-CENTRIC CULTURE: INSPIRING EMPLOYEES TO
DELIGHT CUSTOMERS
Bain & Company, Fred Reichheld
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Apple Retail Mission:Enrich the Lives of Customers and Employees (create promoters)
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Closing the Loop: Echoing Enterprise
Supervisor Customer
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A-B Testing
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6 6
NPS Drives Profitable Growth
0.0
0.5
1.0
1.5
2.0
$2.5M
-20 0 20 40 60
NPS score (2009)
Average sales per unit (U.S. 2009)
* *
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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
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LEGO
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American Express-Profitable WOW
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AirBNB
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Tuft & Needle
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How Tuft & Needle gathers NPS feedback:
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Graham Weston: Chairman & Founder
Why is this so
hard?
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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
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Johns Manville 3-12-07
“When we want your opinion, we’ll send you a survey!”
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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
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NPS ? (80% Ignore )
NPS -40%
Fixating on Unreliable Score?
NPS 50% (20% Respond)
True NPS -22% Ignores
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For B2B, it is crucial to consider WHO is providing feedback and focus on individuals
Influence
Decide
Use
Passive
Promoter
Detractor
NPS = 62%1
= 40%2
= -10% Decide & Influence 1 Response rate = 47%
2 Response rate = 55% ?
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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
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Kmart – Sign in Window about NPS
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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
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Converting a passive to a promoter increases customer value 3.4x (Retail Banking)
Source: Bain Financial Services NPS Survey 2008 (N=4,327)
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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
This 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 24
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
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Employees who deal directly with the customer are among the least engaged
Employee Net Promoter Score
Source: Netsurvey/Bain analysis, September 2012 (n=130,000+)
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Employee engagement drops with each organizational layer farther from the CEO
Organizational Layer
(0 = most senior executive team)
80%
60
40
20
0
-20
62
39 31
16 15
4
-2 -5
0 1 2 3 4 5 6 7
Employee Net Promoter Score
Notes: Calculated from Question “On a scale of 0 to 10, how likely are you to recommend your company as a place to work?” Source: Netsurvey/Bain analysis, September 2012 (n=130,000+)
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Really?
Employee NPS 0 Customer NPS 75
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How does it feel when you receive a “10” from a customer?
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Team matters
Employee
Customer
Team Support
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The rhythm of progress
Scores/Verbatim Closed-Loop
10-Wall/Recognition
Daily Shift Huddles Agile Scrums
Stack Ranking Supervisor Review Social Media Pulse
Stack Ranking Executive Review Evaluate Pilots
Recognition Awards Policy/Process Reviews
Follow-me-homes Investment Priorities
Top Down Research Engagement Survey
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The rhythm of progress
Scores/Verbatim Closed-Loop
10-Wall/Recognition
Daily Shift Huddles Agile Scrums
Stack Ranking Supervisor Review Social Media Pulse
Stack Ranking Executive Review Evaluate Pilots
Recognition Awards Policy/Process Reviews
Follow-me-homes Investment Priorities
Top Down Research Engagement Survey
HuddleUP
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Bain: A Great Place to Work
Employees’ choice 5 YEARS IN A
ROW
#1 Culture
#1 Satisfaction
#1 Training
#1 Best Firm to Work For
2012 2012
2003 2004 2005 2006 2007
2008 2009
2010 2011
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Great leaders
Great leaders don’t give teams
the right answers...
they ensure teams ask the right questions
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HuddleUp can sparq* the right conversations *(Short Poll Asking the Right Questions)
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Right employees with the right support Safe environment, effective organization, right tools and training, valued fairly
Sustained leadership commitment Strategic priority; behaviors that inspire customer and employee advocacy
Net Promoter SYSTEM framework
Feedback, learning and improvement
Individual learning and connection with
customers, autonomy
Inner Loop Outer Loop Root cause analysis,
prioritization & implementation of
structural improvements
Huddle Team problem-solving, issue escalation, innovation
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Huddle Best Practices
• Focus on Customer • Prepare in advance (review previous huddle priorities/progress) • Everybody participates • Clear objectives/short • Rotate Huddle Captain • Team must solve most issues (not leader) • But, when exec assistance required, leader clears the path • Everyone leaves with clear priority action • Recognition for team contributions • Culture of Loving Feedback
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Johns Manville 3-12-07
Enterprise Discovers THE VOTE
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Multiple Use Cases
• Drive Customer-Centric Culture/Progress
• I am happy with our team’s progress at delighting customers (0-10)
• What are you hearing from customers that our execs need to know [employee voice replaces need for customer surveys]
• What change should our team make that would most accelerate progress? (text)
• What change outside team’s control would most help us delight customers?
• Leadership development/team health
• I would recommend my team leader as a person to work for (0-10)
• Most important change our leader could make to improve team results (text)
• Rate team leader progress (list of priority development goals)
• What is holding our team back from operating at our full potential?
• Change management
• I am happy with my team’s progress on XXX (0-10)
• XXX is a top priority for my team leader (0-10)
• What single change would most accelerate progress? (text)
• What individual action will you take this week to support XXX?
• Recognize the team member who most helped team progress on XXX (list
• Culture/Values
• Which value does our team do the best job living? (select from list)
• Recognize team member who best embodies that value with specific example (list)
• On which value does our team have most room for improvement? (list)
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“Whole New Way of Thinking About Your Business”
Golden Rule
1) Repeat 2) Buy More 3) Refer 4) Feedback 5) Cut Costs
0-6
7-8
9-10
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Personal Balance Sheet
NPS 0 NPS 75
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Personal Balance Sheet
NPS 0
Love you!
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Angels
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Personal Balance Sheet
NPS 0
Jerk!
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Aaron James: Harvard Phd; Professor of Philosophy University of California, Irvine
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NPS: Building Your Balance Sheet
Employee NPS 0 Customer NPS 75
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Creating a Better World with NPS
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Net Promoter: Greatness Positioning System
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“The first number we review at every board meeting is our customer scores.”
The Future of NPS
Andy Taylor, CEO Enterprise Rent-A-Car
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Rating the customer
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