The Journey to The Journey to Customer LoyaltyCustomer Loyalty
NPSNPS
LeanLean
Vivian Hairston Blade
Master Black Belt - Marketing
GE Consumer & IndustrialNet Promoter® is a registered trademark of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.
1GE – VHB 2008 Net Promoter Conf
Jan 2008
•NPS … A growth enabler
Learning Objectives
•Mobilizing sustainable growth … Culture
•Growth … Measuring success
•NPS … A simple framework
•Improve using Lean Six Sigma
Net Promoter® is a registered trademark of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.
3GE – VHB 2008 Net Promoter Conf
Jan 2008
Our leadership believes…..
Jeff ImmeltCEO, GE
“We are using a simple metric called
Net Promoter Score (NPS) to measure how
customers view GE. The absolute score is
less important than the trend. We learn
from both promoters and detractors.
Most importantly, we have been able to
associate NPS improvement with growth.
NPS is simple and we can use it across
the Company.
4GE – VHB 2008 Net Promoter Conf
Jan 2008
GE: Model for organic growth
Getting results: sustainable ….. visible ….. valuable
Organic growth (V%)
4%
2-3X
GDP
Historical 2007
Execute forgrowth
Technology/services
Customers
Globalization
Innovation
Growth leaders
Commercial excellence
Growth as a process
5GE – VHB 2008 Net Promoter Conf
Jan 2008
NPS @ GE Practical business applications
Product
&Process
B2C
&
B2B
7GE – VHB 2008 Net Promoter Conf
Jan 2008
NPS: The GoalThe goal must be to go beyondmere satisfaction to increase Promoters and reduce Detractors.
….NPS IS about how we improvecustomers’ experiences!
NPS is NOT about managing the score…….
Listen Act Grow
8GE – VHB 2008 Net Promoter Conf
Jan 2008
Toolkit to drive growth
Growth
Act
Diagnose& Fix
Communicate
Listen
Measure
Validate
Customer Metrics Lean
NPS
AnalyzeSegment Survey
�Traditional
�Non-Traditional
�Include lost & new customers
�Align with business strategy
�Ensure objectivity
�Audio record
�Follow up to find root causes
�Immediately feed results with audio into the organization
�Find patterns
�Use customer experience councils
�Resource with cross-functional teams
Implementing “Listen”
Survey questions: Score & Why
1. On a scale of 0 to 10, how likely is it that you would recommend to a friend or colleague?
2a. Promoters: What factors most influenced your rating?
2b. Detractors / Passives: What would we have to improve or do differently for you to be extremely likely to recommend?
11GE – VHB 2008 Net Promoter Conf
Jan 2008
Listen …experience vs. expectations
Important Consumer Cues / Attributes
Delivery & Installation
Expectations
/ Needs /
WantsShort-term Quality
Long termPerformance
Service Experience & Problem Resolution
Long-term Quality
Call-Center Interaction
Brand Experience / Perception
Experience Cues +
Food Preservation
Capacity / Dimension
Quiet Operation
Economical Operation
Cleanability
Appearance
Product Cues
Expectations
/ Needs /
Wants
Flexibility and Convenience
Features
12GE – VHB 2008 Net Promoter Conf
Jan 2008
Listen …experience vs. expectations
Nail the basics:
“Eliminating defects”
Product meets
customer needs
Product works as expected
Problems are
resolved as expected
Passively Satisfied
Ordinary products/ services delivered
exceptionally
Exceptional products / services
delivered well
Loyal Promoters
Differentiators:
“Creating the wow-factor”To Grow….
…must deliver on key cues Exceptionally well
Source: Fred Reichheld, Bain & Company, Inc.
Implementing “Act”
Strategic
�Create action plan by customer & track progress
�Do 3-6 month follow-up
�Identify systemic fixes
�Prioritize & resource strategic opportunities
�Use Lean to improve customer facing processes
�Hold leaders accountable
Tactical
15GE – VHB 2008 Net Promoter Conf
Jan 2008
Lean Six Sigma and Growth
Creates capacity to fund growth
…by freeing people from non-
value added work
Stimulates increased revenues
…by improving cycle times,
being faster to the market with
less defects
16GE – VHB 2008 Net Promoter Conf
Jan 2008
Manufacturing … Defect Reduction, Cycle-time Improvements
Lean Six Sigma and Growth
If there is an output, there is a process.Lean Six Sigma will work!
Finance … Billing Timeliness /Accuracy, Risk Analysis
Engineering … Design For Reliability, Drawing Accuracy
Services … Accurate appointment times, Repair Turnaround
Info. Technology … Application Development, System Efficiency
Distribution … On-time transportation, Inventory control
Sales …Face time, Accurate Orders, Timely Quotations
Lean Attacks Waste by
reducing cycle timeProcess
Non Value Add Time
Value Add Time
Lead Time/Cycle Time
Six Sigma Attacks defect
reduction & variation
Focus on continuous improvement
Three type of activities
Not necessary and does not add value
Necessary but does not add
value
Value add
Non Value Add
Most value
streams’ “value
add” activity is
2-5% of total
cycle time –
95% - 98% of a
process is
waste!
Lean Six Sigma and Growth
18GE – VHB 2008 Net Promoter Conf
Jan 2008
Excess Processing
• Rework
• Entering same data
multiple times
• Learning Curve
Overproduction
•Making or processing
more than needed
Unrealized Creativity
• Failure to use good
ideas from anywhere
Waiting
• On decisions
• On Systems
• On Equipment
Transportation
• Conveyance of material
• Delivering Hard Copies
Unnecessary Motion
•Navigating multiple
screens to input data
• Surgeon – Nurse
Defects
• Broken Light bulbs
• Scratched appliances
• Can’t Access the Home
Page
Excess Inventory
•Multiple applications
awaiting approval
• Product in Warehouses
•Unnecessary document/
data storage
Lean Principles & Enablers: Waste
19GE – VHB 2008 Net Promoter Conf
Jan 2008
Lean Principles & Enablers
Moonshine
1 Piece Flow
Heijunka
AWO
7 Ways
SMED
Standard Work
Poke Yoke
Takt Time
Value Stream Map
House of Toyota Spaghetti M
ap3P
Kanban
Pugh Matrix
Pull
JIT
Observation Sheets
Visual Management
21GE – VHB 2008 Net Promoter Conf
Jan 2008
Measuring “Growth”
Referral Sales
Market Share
Quote Conversion Rates
Measure results against key customer & business metrics
Accessibility
NPS
Cycle-Times
Transaction Quality
Responsiveness
Pre/Post-Sales Support
Repurchase Rates
Profitability
Cost-to-Serve
22GE – VHB 2008 Net Promoter Conf
Jan 2008
Builders…key investments for growth….
Improve the customer sales, construction & move-in experience
Enhance ownership experience & customer service after closing
Sales / Construction Move-in Ownership / Live-in
Purchase / Ownership Cycle
Exceed Expectations
Satisfaction
LoyaltyRepeat Visits
ReferralSales
RepurchaseCost-to-Serve
23GE – VHB 2008 Net Promoter Conf
Jan 2008
Improve customer service after the sale
Shopping In-Store Purchase Post-Sales / Service
Purchase Cycle
Repeat Visits
ReferralSales
Repurchase
Exceed Expectations
Satisfaction
LoyaltyRepeat Visits
Retailers…key investments for growth…
Improve the customer shopping & buying experience
25GE – VHB 2008 Net Promoter Conf
Jan 2008
New Technical Thinking
Change Culture
Dollars
Mobilizing Sustainable Growth
Growth requires “Retooling” the way we Think & Operate
NPS / LEAN
26GE – VHB 2008 Net Promoter Conf
Jan 2008
• Stimulate Growth through Passionate Customer Advocates
Mobilizing Sustainable GrowthBuilding a loyalty focused culture to realize
growth
Listen Act Grow
• Measure NPS for strategic customer segments
• Clearly Define Customer Expectations
• Resource strategic Priorities
• Use LEAN to deliver Exceptional Value Propositions
• Build a Culture of Accountability for Customer loyalty
“Culture”
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