CUSTOMER LOYALTY USING NET PROMOTER SCORE

Gary FoxDirector, Dell Customer Experience

November 2009

CUSTOMERLOYALTYUSING NET PROMOTER SCORE

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OUR MISSION:

POWERINGBUSINESS IDEAS THAT

CHANGETHE WORLD

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GREATPRODUCTS & SERVICES

• Best products & services that enable our Small

and Medium Business customers

• Our Enterprise, Client, Printer, S&P and Services

offerings will continue to evolve to address

customers’ needs

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BECOME THE

BRANDOF CHOICE

• Take Your Own Path (TYOP) is putting the customer first

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UNPARALLELEDCUSTOMER

EXPERIENCE• Drive customer loyalty by building and owning customer relationships

• Committed to deliver amazing Account Management

• Focus on Operational Excellence as a key enabler

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Relationship System Transactional System

Action taken to improve experience Support Sales &

account management Product Billing, etc.

Loyalty MetricNet Promoter Score

Industry and competitive benchmark

Drivers of LoyaltyWhat touch points most

impact loyalty?Where should I focus?

Feedback triggered by a specific event InquiryPayment processing

Support call, etc.

Loyalty

Overall Customer Experience

Satisfaction with Touch Point

BusinessProcess

• Top-down systematic approach• Identify critical loyalty drivers

• Develop Touch Point research that addresses top drivers

• Drive Business Process Improvement

• Decision Makers• Relationship

FY10

Focus

• End Users• Event

Legacy Focus

LOYALTY STRATEGY

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MEASUREMENT• Net Promoter Score® (NPS) is a loyalty metric used by leading

companies worldwide

• Developed by Satmetrix, Bain & Company, and Fred Reichheld

• It has gained popularity due to its simplicity

and its linkage to profitable growth

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HOW likely are YOU to

Rate Dell 9 or 10 are loyal enthusiasts who will keep buying and refer others, fueling growth

Rate Dell 7 or 8 are unenthusiastic customers who are vulnerable to competitive offerings

Rate Dell 6 or lower are unhappy customers who impede growth through negative word-of-mouth

RECOMMEND DELL?

PROMOTERSDETRACTORS PASSIVES

0 1 2 3 4 5 6 7 8 9 10

_PROMOTERS50%

DETRACTORS20%

NPS30%=

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WHYIS IT

IMPORTANT?• Lead to profitable growth as we adhere to a

discipline to drive improvements

• Achieve great financial results by adopting

the right business processes and behaviors

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AMER SMB CE COUNCIL

Executive Sponsor

Tech Supp DFSSalesCare

Biz OpsSales

Biz OpsMarketing Finance

OBJECTIVE:

• Use the VOC feedback to identify critical actions required by the business

• Link survey results to improvement programs that enhance customer loyalty

• Review improvement plans and measure progress

• Enhance cross functional co-operation and awareness

GOVERANACE STRUCTURE

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Customer issues

Single Point of Entry

Cancellations Rebook Team

IMPROVEMENT PROGRAMSCUSTOMER FEEDBACK PROGRAMS

Lead times Fast Track

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CLOSED LOOP CORRECTIVE ACTIONS• Detractor email notification is sent to ISMs within 24 hrs of survey completion

• SFDC Tasks created to capture issue resolution and create visibility to actions taken

Customer Responds to NPS survey (0-6)

Email notification to Sales Manager in 24 hrs

Sales Manager contacts customer

Capture resolution in SFDC

SFDC tasks for each Detractor

Email to Sales Manager within 24 hrs

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CUSTOMER CENTRIC CULTURE

SMB ENGAGEMENT TEAMActively voicing your issues and focusing on key areas to make AMER SMB a better place to work:

• Representation from all functions

• Core teams formed at all sites

• Cross-functional collaboration

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IS NOT A METRIC,IT IS A

LOYALTY

PERMANENT WAY OF LIFE

USE THE 3D APPROCH TO IMPROVE CUSTOMER LOYALTY

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Dell has held the leadership position in servers for two straight quarters, notebooks for four quarters  and in desktops for eighth consecutive quarter ranking number 1 in customer satisfaction

European Call Center Awards acknowledge Dell’s commitment to consistently delivering value and service to our customers (Oct 2009)

Dell remains the notebook PC owned by the largest percentage of SMBs and of those who plan to buy additional notebooks in the next year, 40 percent of small and 60 percent of medium companies plan to purchase DELL

AWARDS

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