BOS Advocamp 1

ADVOCAMP KEYNOTE

POWERING ADVOCACY WITH NPS

FRED REICHHELDCreator | Net Promoter System

#ADVOCAMP

BOS Advocamp 2This 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

BOS Advocamp 3This 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

Loyalty Leaders: Grow 2.6X competitor avg.

BOS Advocamp 4This 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

Repurchase

Buy additional lines

Referrals

Feedback

1

2

3

4

Four Loyalty Behaviors Drive Growth

BOS Advocamp 5This 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

Tools for managingProfit

Tools for managingLoyalty

Who is to blame?

BOS Advocamp 6This 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

“The only way to grow a business is to get customers to come back for more and tell their friends.”

Andy Taylor, CEOEnterprise Rent-A-Car

“Hold on Fred—we like our survey…..”

BOS Advocamp 7This 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

Net profitNet grrrrowth

Balance of power

BOS Advocamp 8This 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

Supervisor Customer

Closing the Loop: by local supervisor

BOS Advocamp 9This 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

Weekly Team Huddle

BOS Advocamp 10This 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

The Elements of the System

• Reliable Metric (rank-ordering branches)• Closed Loop• Shrink Bad Profits• Know Economics (value of promoter)• Huddle (Voice/Vote)

BOS Advocamp 11This 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

How likely is it you would recommend us to a friend?

10 9 8 7 6 5 4 3 2 1 0

% % NPS=

Extremely likely

Not at all likely

Net Promoter

BOS Advocamp 12This 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

Why intent to recommend is such an important signal?

• Best features• Best service• Best price

Head

• They know me• They value me• They listen to me• They share my values

Heart

BOS Advocamp 13This 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

Now: Net Promoter® Adopted by Thousands

Then

BOS Advocamp 14This 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

100%

75

50

25

0

2004 2012 …20202006 2013

>50% Net Promoter Score Adoption

<5% Net Promoter System Adoption

Today

Net Promoter® Adoption

BOS Advocamp 15This 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

Transformed Net Promoter Score into Net Promoter System (a way of doing business)

BOS Advocamp 16This 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

“This is the best

customer relationship metric I’ve

seen”January, 2004

Jeff Immelt: CEO General Electric; Chairperson of President’s Council on Jobs and Competitiveness

BOS Advocamp 17This 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

Brad Smith: CEO Intuit

“Thank goodness for Net Promoter. It provided a framework for thinking about—and managing in this social media world…

our teams call it the love

Metric.”Brad Smith, CEO

Intuit

BOS Advocamp 18This 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

Tony Hsieh: CEO Zappos

“We use NPS every day to make sure we are wowing customers and employees.”

BOS Advocamp 19This 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

Apple Retail Mission: Enrich the Lives of Customers and Employees (create promoters)

BOS Advocamp 20This 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

Closing the Loop: Echoing Enterprise

Supervisor Customer

BOS Advocamp 21This 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

ZipCar: Creating More Promoters with Frugal WOW

BOS Advocamp 22This 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

Is it the cows?

BOS Advocamp 23This 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

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

BOS Advocamp 24This 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

AirBNB

BOS Advocamp 25This 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

Tuft & Needle

BOS Advocamp 26This 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

How Tuft & Needle gathers NPS feedback:

BOS Advocamp 27This 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

Bonobos-Pants that Fit

BOS Advocamp 28This 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

BOS Advocamp 29This 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

Graham Weston: Chairman & Founder

Why is this so

hard?

BOS Advocamp 30This 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

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

BOS Advocamp 31This 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

How Reliable Is Your Score?

BOS Advocamp 32This 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

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

BOS Advocamp 33This 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

Kmart – Sign in Window about NPS

BOS Advocamp 34This 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

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

BOS Advocamp 35This 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

Converting a passive to a promoter increases customer value 3.4x (Retail Banking)

BOS Advocamp 36This 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

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

BOS Advocamp 37This 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

Employees who deal directly with the customer are among the least engaged

BOS Advocamp 38This 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

Really?

Employee NPS 0 Customer NPS 75

BOS Advocamp 39This 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

Team matters

Employee

Customer

TeamSupport

BOS Advocamp 40This 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

The rhythm of progress

BOS Advocamp 41This 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

The rhythm of progress

BOS Advocamp 42This 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

HuddleUp can sparq* the right conversations

*(Short Poll Asking the Right Questions)

BOS Advocamp 43This 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

“Whole New Way of Thinking About Your Business”

BOS Advocamp 44This 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

Life’s Balance Sheet

NPS 0 NPS 75

BOS Advocamp 45This 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

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BOS Advocamp 46

ADVOCAMP KEYNOTE

POWERING ADVOCACY WITH NPS

FRED REICHHELDCreator | Net Promoter System

#ADVOCAMP