Creating Promoters and Keeping them!

Why is it getting harder to keep customers satisfied and loyal?

Greater competition for peoples time and their leisure pound

Higher expectations generally in terms of service – driven up by great service driven companies

More savvy/experienced customers

More comparison/sharing reviews – online

Knowledge of what they need to do

Around a quarter of adults know they should be doing 5 times 30 mins

Compared to 3/4s who know the 5 a day message

28% of the population hit the target for fruit and veg

BHF Figures 2012

39% of men and 29% of women in England reported meeting the recommendations,

however, when measured using an accelerometer it was found that only 6% of men and 4% of women met these

What would encourage?

Time/facilities at place of work 23%

Free/reduced charges at centres 19%

Advice (GP, PT etc) 4%

Potential market

Around 8% of the adult population have been members/users but would never come again

only 16% of the population are potential “virgin first timers”; we have to work increasingly with “recycled members/users”

Facility Perception

    Three quarters of people think that gyms/centres can cater for them*… public sector facilities are more

…but only a third think that they would provide value for money

Most people seem to feel they could “fit in - in the gym”…

…. but they either do not understand the offering…

…..or they have experienced it, do understand it, and still aren’t convinced that we are providing value for money!

Factors – joining and using

Its all about location, convenience, facilities and VFM when people join……

But service and people are vital to encourage them to stay…

Why join a particular centre? Location = 40%

Value for money of membership = 20%

Range of facilities = 14%

What keeps them coming?

Importance of factors in keeping motivated (% stating quite or very impt)

0 10 20 30 40 50 60 70 80

Social activities for members

Competitions and challenges in the pool

Personal training

Feeling like a value member

Friendly staff

Knowledgeable and supportive staff

Seeing visable results

Importance v Delivery and Gaps

14

15

30

52

52

67

73

15

15

40

32

54

52

43

1

0

10

-20

2

-15

-30

-40 -20 0 20 40 60 80

Social activities formembers

Competitions andchallenges in the pool

Personal training

Feeling like a valuemember

Friendly staff

Knowledgeable andsupportive staff

Seeing visable results

Importance v Deliv Gap

Delivery

Importance

The KANO Model

A way of better understanding the customer experience is the KANO model.

What is it?

A simple yet powerful framework for thinking about how a service can either delight or disappoint a customer.

A great tool for getting staff thinking about the customer experience

A tool to help develop approaches for improving customer satisfaction over time.

The KANO Model

Not all features of a service are equally important for delivering either disappointment or delight

Basics

““basic”basic”

dissatisfied

satisfied

• ExpectedExpected• Does not “satisfy” when presentDoes not “satisfy” when present• Causes dissatisfaction when absentCauses dissatisfaction when absent

•4 wheels on a car4 wheels on a car•Hotel door which closesHotel door which closes

amount

Basics

““basic”basic”

dissatisfied

satisfied

• ExpectedExpected• Does not “satisfy” when presentDoes not “satisfy” when present• Causes dissatisfaction when absentCauses dissatisfaction when absent

•4 wheels on a car4 wheels on a car•Hotel door which closesHotel door which closes

amount

Never fail to deliver your Basics

Performance

““basic”basic”

dissatisfied

satisfied

• ExpectedExpected• Does not “satisfy” when presentDoes not “satisfy” when present• Causes dissatisfaction when absentCauses dissatisfaction when absent

•4 wheels on a car4 wheels on a car•Hotel door which closesHotel door which closes

amount

““performance”performance”• Can cause satisfaction or Can cause satisfaction or

dissatisfactiondissatisfaction• More (or less) is betterMore (or less) is better

•Waiting time, Politeness, Price Waiting time, Politeness, Price

Performance

““basic”basic”

dissatisfied

satisfied

• ExpectedExpected• Does not “satisfy” when presentDoes not “satisfy” when present• Causes dissatisfaction when absentCauses dissatisfaction when absent

•4 wheels on a car4 wheels on a car•Hotel door which closesHotel door which closes

amount

““performance”performance”• Can cause satisfaction or Can cause satisfaction or

dissatisfactiondissatisfaction• More (or less) is betterMore (or less) is better

•Waiting time, Politeness, Price Waiting time, Politeness, Price

Find ways to deliver more of the more is better and less of the less is better

Delighters

““basic”basic”

dissatisfied

satisfied

• ExpectedExpected• Does not “satisfy” when presentDoes not “satisfy” when present• Causes dissatisfaction when absentCauses dissatisfaction when absent

•4 wheels on a car4 wheels on a car•Hotel door which closesHotel door which closes

amount

““performance”performance”• Can cause satisfaction or dissatisfactionCan cause satisfaction or dissatisfaction• More (or less) is betterMore (or less) is better

•Waiting time, Politeness, Price Waiting time, Politeness, Price

““delighters”delighters”• Not expectedNot expected• Pleasantly surprisedPleasantly surprised

•Free theatre ticketsFree theatre tickets•Extra memoryExtra memory

Delighters

““basic”basic”

dissatisfied

satisfied

• ExpectedExpected• Does not “satisfy” when presentDoes not “satisfy” when present• Causes dissatisfaction when absentCauses dissatisfaction when absent

•4 wheels on a car4 wheels on a car•Hotel door which closesHotel door which closes

amount

““performance”performance”• Can cause satisfaction or dissatisfactionCan cause satisfaction or dissatisfaction• More (or less) is betterMore (or less) is better

•Waiting time, Politeness, Price Waiting time, Politeness, Price

““delighters”delighters”• Not expectedNot expected• Pleasantly surprisedPleasantly surprised

•Free theatre ticketsFree theatre tickets•Extra memoryExtra memory

Find ways to surprise your customers with delighters which

don’t cost you much

Net Promoter Score

The Net Promoter Score is worked out by subtracting your % of Detractors from your % of Promoters.

The NPS question is “How likely is it that you would recommend this service to a friend or colleague? With 0 being not at all and 10 being extremely”

The NPS calculation

Promoters (score 9-10) are loyal enthusiasts who will stay longer, spend more and refer others, fuelling growth.

Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to leaving or competitive offerings.

Detractors (score 0-6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth.

Net Promoter Score

Detractors 20% Passive 40% Promoters 40%

NPS = 20

0 1 2 3 4 5 6 7 8 9 10

So, if in the example below you had 20% scoring between 0 and 6, 40% 7 and 8 and 40% scoring 9 and 10, then your NPS would be 20 ( ie 20-40%)

Satisfaction surveys can be misleading; most defectors ARE

“satisfied”

Is there a universal ultimate question?

“Would you recommend us to a friend?”

Probes both dimensions of loyalty….

* Best features * They know me

* Best service * They value me

* Best price * They listen to me

* They share my values

Head Heart

Tailoring the conversation based on NPS

Total customer Worth for Promoters and Detractors Based on Average Spending and Word-of-Mouth Behaviours

Referral and Recommendation

Used to be Bad Experience = 10 people, good experience = 3 – short time period

Impact of internet – grown these figures exponentially

1 negative = 5 positives Sports, leisure and H and F is R and R

sensitive because Community based

High service interaction industry

Using NPS – its not just a number

Increasing number of organisations are using NPS as a matrix

But measuring by itself is not enough

The score wont move unless you change things/take action

Strategic or tactical?

Strategic – identify the drivers of detraction and promotion

Tactical

Transactional or Relationship

Drivers of promotion

Tend to be “relationship related”

With staff, friends, colleagues or other members

We need to create the opportunity for these touch points and then facilitate a promoter experience

Top 5 Tips to remember when communicating with your customers and potential customers

1. Remember time is the number one perceived barrier to being more active

2. Weight loss/maintenance is the “hidden driver”

3. Create promoter experience opportunities by creating “touch points”

4. Keep delivery reality in line with marketing messages

5. Remember it’s a results driven business !

Thank You

contact Mike Hill on mikehill@leisure-net.org