Net Promoter Score

Net Promoter Score – What is it and Why Does it Matter For My Business?

A Net Promoter Score (NPS) is a metric used to gauge customer loyalty. It is calculated by subtracting the percentage of detractors from the percentage of promoters of your business. It’s that simple. But what does it mean? This one figure can hold a lot of meaning for your business.  Read below for advice on interpreting your NPS as well as how to interpret other key CX metrics.

Real-World Stories of Creating the Metrics that Matter

Heart of the Customer's Customer Experience ModelThis week we continue to analyze the Temkin Group’s finalists for their 2012 Customer Experience Excellence Award to learn how they build Customer Intelligence.

Whereas last week I outlined how the companies bring their customers to life for their employees. This week I delve into determining the Metrics that Matter – the second component of Customer Intelligence.

I wrote before about how The Perfect Customer Experience Score is not universal – it varies for each company. Great organizations do not just plug in the Net Promoter Score or satisfaction because they heard they’re great measurements – they take the time to discover whether the scores actually predict important outcomes such as client loyalty. NPS may or may not be the right score. Superior companies test to see if improving NPS improves their customers’ loyalty. If not, then NPS is not a Metric that Matters for your company. Read more

Drivers: The Secret to Customer Experience Success

iStock_000025403053XXLargeI was meeting with a global restaurant company’s COO, Chief People Officer, and key franchisees. I knew I was losing in the first 10 minutes.

We met to discuss ways to improve sales.  I brought a driver analysis on what drove repeat business with his restaurants, and the leading driver was “The Warmth of the Greeting.”  But as a stereotypical COO, he obsessed with repeatable processes – cleanliness, speed of service, etc.  He was unwilling to consider that perhaps something as fuzzy as a greeting was responsible for repeat business.  This led to a very long meeting.

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Three Steps to Start Your Customer Experience Program

Thumbs UpI’ve worked with a number of companies with great customer experiences, including several I have featured in this blog, ranging from retailers to healthcare companies to manufacturers. During this time I have noticed themes about how companies effectively use their brand values, strategies and missions to create a great customer experience.

Their structures vary and their approaches differ.  But successful customer experience capabilities follow three steps to success. They excel at Customer Intelligence, use this to inform their Customer-Based Capabilities, and sustain all this through a Customer-Focused Culture. Read more

The Perfect Customer Experience Score!

IMG_3315I was meeting with the Executive VP of Sales for a national retailer, who asked me “Is there a holy grail of customer experience measurement?  We use satisfaction, and I’ve heard about this Net Promoter Score.  Is there one score that’s the best?”

This is an important question, and one I’m frequently asked. Opinions differ, with some companies advocating their favorite metric with the zeal of the converted.  NPS is the only question you need.  Satisfaction is absolutely not predictive.  Or it’s just as predictive as NPS.  Or more predictive.  The Customer Effort Score is far more predictive than either one.

With all these contentions, why do I keep reading case studies that contradict each other?  Why do some companies find NPS is more predictive of financial results than satisfaction, where others find just the opposite?

Could it be that there’s not one perfect score for everybody? Read more

Create an Engaging Customer Experience Workshop

iStock_000019575299LargeAre you looking to improve your customer experience?  I will be hosting a full-day course on Creating an Engaging Customer Experience in partnership with the Performance Excellence Network.  You can learn more at http://performanceexcellencenetwork.org/events/minnesota-innovation-spark-2013/.

Creating an Engaging Customer Experience

October 2, 2013 | 8:30 am – 4:30 pm

A great customer experience begins with a solid understanding of your customers.  But it also requires that your employees use those insights to build programs that your competitors cannot duplicate.

The Performance Excellence Network (formerly the Minnesota Council for Quality) is pleased to welcome Jim Tincher, Senior Business Advisor with Satisfaction Management Systems, to a special full-day workshop September 10: “Creating a Great Customer-Inspired Experience.”

Jim will build off of the PEN breakfast earlier this summer, sharing the three keys to build a great customer-inspired experience for your business, and you will pick up actionable steps you can implement literally tomorrow!

Learning objectives for the workshop include: Read more

Four Trends Changing the Customer Experience Movement

Our Customer Experience capability is growing!  In the last two months the Customer Experience Professionals Association (CXPA) has added about 300 members, with four new sites hosting local events.  Here in Minneapolis we hosted a great session to discuss Forrester’s Customer Experience Maturity Model, and how members are helping their companies move up the model.

As with any movement, this growth is leading to maturity and change.  Here are four trends I am seeing impact our practice today:

  • Customer Experience is moving beyond just NPS
  • Increasing recognition on the role of employee engagement
  • Customer Journey Mapping 2.0
  • Emerging Comprehension of Customers’ Non-Rational Thinking

Customer Measurement is Moving Beyond Just NPS

The Net Promoter Score (NPS) is still the cornerstone of many customer experience programs.  What is changing is that companies are moving beyond the notion of using just one number, surrounding it with other factors, including satisfaction (yes, it’s still popular for many), loyalty, and the Customer Effort Score.

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Create Change Through Customer Experience Heroes

What gets measured may get managed, but what gets celebrated gets repeated.

Improving your customer experience requires you to use every tool at your disposal.  Voice of the Customer research is obviously critical.  Understanding your existing Customer Satisfaction Survey or Net Promoter Scores is also important.  But while they monitor your status, these alone will not create change.  You need to find those bright spots in your organization where your customer is being well-served and promote them as much as possible.  You need to create customer experience heroes.

Customer Experience Hero

Heroes define a company, showing what is important.  When a company celebrates sales, they sell more – but perhaps at the expense of delivery issues.  When it celebrates product management, new products come out quickly – including those without customer demand.  But companies with great customer satisfaction use the Voice of the Customer data to understand their level of customer satisfaction, and then celebrates those who engage customers at a superior level. Read more

Tekserve: A Blueprint for a Great B2B Customer-Inspired Experience

“Our job is to make our customers look good to their bosses.” 

That’s the philosophy of Tekserve, an Apple retailer and IT services provider in New York City, as articulated by Director of Marketing Jazmin Hupp.

Imagine that you are a long-time Apple retailer and supplier, and then Apple builds their flagship store just two miles from you, then four more just as close. Some might find it time to close up shop. Instead, Tekserve used the challenge as an opportunity to refocus on their customers. Their reward? Consistent growth, being featured in the Crain’s New York Business Fast 50 and the Computer Reseller News’ 2012 Solution Provider 500 list, which ranks the top technology integrators in North America.

Tekserve doubled-down on the service surrounding Apple’s products, particularly for businesses.  Almost 2/3 of their revenue comes from B2B relationships, where they are far nimbler than Apple. Much of their work involves integrating Apple products into existing networks, including wholesale conversions from PCs to Macs.

Tekserve credits their growth to three main areas of focus: Read more

The First Key to Creating a Great Customer-Inspired Experience

A customer-inspired experience is critical to growth. According to a Temkin Group analysis, a great customer experience increases likelihood to recommend by 19.5% and likelihood to repurchase by 18.4%. And the best way to get that inspiration is through those who talk to customers every day – your front-line employees. In this piece you will receive the first key of creating a great customer-inspired experience. Keys two and three will follow soon!

The First Key to Creating a Customer-Inspired Experience: Identify What Really Matters

This seems like a no-brainer. Companies know what matters to their customers, right?

In fact, many have it wrong. Leaders get so focused on their tangible capabilities that they no longer see through their customers’ eyes, and use their over-informed perspective to prioritize efforts. As a good example, I worked with a global fast food company to determine the best way to increase growth. This company was laser-focused on R&D – inventing the newest menu item to drive that bump in sales. They applied a very rational lens to their customer experience – if we provide good food fast and keep coming up with new items, we’ll grow.

This approach is so alluring that it is no surprise they succumbed to it. And sure enough, the company was rewarded with a spike in sales every time they came out with a new food item. So, like most companies focusing on next quarter’s results, they kept feeding the R&D beast. But despite these sales spikes, their same-restaurant sales continued to drop each year.

We identified a segment of customers who visited their restaurants more than any other. But even within this segment, we found huge discrepancies on monthly spending based on emotional engagement. Read more

Dunn Bros Coffee – the Non-Chain Chain

“Coffee houses are about neigh­bor­hoods,” Dunn Bros Coffee co-CEO Chris Eilers tells me while we drink light roasts and blues music plays overhead.

Dunn Brothers is a popular Midwestern coffee chain with most of its locations in the Twin Cities. The company was started by Ed Dunn and now boasts 83 locations. Whereas Starbucks and Caribou (another Minnesota-grown coffee shop) have primarily corporate-owned locations, Dunn Bros focuses on attracting franchisees, who typically run and work at only one location.

This interview discusses the Dunn Bros Coffee history, how they use their franchisees to develop their unique customer experience, and how the company uses market research and social networking to learn more about their customers. It concludes with an analysis on how they do in creating a customer-inspired experience, as measured through the Heart of the Customer model.

Read the interview in Dunn_Bros-the_Non-Chain_Chain-White_Paper.