8 ways in which NPS can add value to your business
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The document outlines eight key ways that Net Promoter Score (NPS) can enhance business value, including improving account management, prioritizing customer issues, and aligning organizational silos. It highlights successful case studies from various companies that have effectively utilized NPS to drive revenue growth and enhance customer satisfaction. NPS not only aids in customer feedback analysis and competitive positioning but also fosters employee engagement through better customer interactions.
8 ways in which NPS can add value to your business
- 1. 8 WAYS IN WHICH NPS® CAN ADD VALUE TO YOUR BUSINESS FUTURELAB Net Promoter Score, Net Promoter and NPS are registered trademarks of Bain & Company, Satmetrix Systems and Fred Reichheld FEATURING 10 CASES FROM EUROPEAN INDUSTRY LEADERS
- 2. 14/09/18 2 How Orange Business Services became the most favored telecom service provider What Philips did differently to dramatically increase closing rates? 1IMPROVE ACCOUNT MANAGEMENT & SALES EFFECTIVENESS FEATURED CASES
- 3. USE NPS TO UNDERSTAND ACCOUNT STAKEHOLDERS AND TAILOR YOUR APPROACH • Understand whether individual stakeholders are promoters, passives or detractors. • Understand the drivers of their position • Develop tailored account plans which “look beyond” the usual client contact (purchasing?) • Develop customer partnerships for key accounts which pro-actively highlight these topics • Compare findings across account to identify structural issues. • Integrate NPS into CRM or ERP systems 8 Ways in which NPS can add value to your business © FUTURELAB USE NPS TO UNDERSTAND ACCOUNT STAKEHOLDERS AND TAILOR YOUR APPROACH
- 4. Orange Business Services systematically approaches its key accounts with a proposal to survey all stakeholders, report back on the findings + jointly implement an action plan. This has allowed the company to become the most favoured telecom services provider at many of their accounts. For “key” stakeholders (radiologists, cardiologists, …) a US healthcare company tracks individual NPS data and pro-actively adapts account plans if these individuals change employer. With NPS we can approach our clients with a “way of working” focused on the value we create rather than remain stuck in endless bickering about price and conditions. CEO B2B Markets National telecom operator 8 Ways in which NPS can add value to your business © FUTURELAB HOW ORANGE BUSINESS SERVICES BECAME MOST FAVOURED TELECOM SERVICE PROVIDER
- 5. Video is the 2nd most influential type of reference collateral for B2B buyers (behind live references) Likelihood to close deals increases by 3-5%, merely by listing promoter accounts in tenders Dramatically increase closing rates when promoters speak on Philips’ behalf 8 Ways in which NPS can add value to your business © FUTURELAB WHAT PHILIPS DID DIFFERENTLY TO DRAMATICALLY INCREASE CLOSING RATES?
- 6. 14/09/18 6 Global B2B Prototyping Company uses NPS to set strategic priorities on areas with most impact on their customers 2PRIORITIZE CUSTOMER ISSUES FEATURED CASE
- 7. Fix Maintain Re-enforce Identify degree in which customers mention attention areas Assess importance of factor to NPS score 74% of NPS score is explained by performance at 2 touchpoints: 8 Ways in which NPS can add value to your business © FUTURELAB GLOBAL B2B PROTOTYPING COMPANY SUCCESSFULY IDENTIFIED CUSTOMER ISSUES GLOBAL B2B PROTOTYPING COMPANY USES NPS TO SET STRATEGIC PRIORITIES ON AREAS WITH MOST IMPACT ON THEIR CUSTOMERS
- 8. 14/09/18 8 Medical equipment company and Industrial fiber company leverage NPS to identify repurchase opportunities 3IMPROVE CUSTOMER PORTFOLIO MANAGEMENT FEATURED CASES
- 9. • Implement a differentiated strategy per account type (cluster) or even individual account. • Streamline financial forecasts to reflect “future” (vs. past) customer behaviour NPS RepurchaseHorizon 1 month 3 years Cross-sell leverage for PR Operational improvement Crisis intervention Too late, abandon Structural intervention Confirm in views, pre-sell 8 Ways in which NPS can add value to your business © FUTURELAB LEVERAGING NPS TO IDENTIFY REPURCHASE OPPORTUNITIES
- 10. 14/09/18 10 European automotive brand used NPS accross dealerships to maintain sales during recession 4IMPROVE DISTRIBUTION / REATIL EXPERIENCE FEATURED CASE
- 11. A “closed loop” follow up system for customer feedback Weekly dealer staff meetings with conversation guides for dealer manager Monthy regional reviews with conversation guides for network manager + AUDIO FILES Individual Customer Reports with audio files containing actual “voice” of the customer • What did we do right? • What did we do wrong? • How can we make this customer an advocate? • How will we repeat this in the future? • Opportunities for the week? • NPS by dealer • Key reasons • Planned actions • Follow-through (done?) • Network opportunity for the week. 8 Ways in which NPS can add value to your business © FUTURELAB EUROPEAN AUTOMOTIVE BRAND USED NPS ACCROSS DEALERSHIPS TO MAINTAIN SALES DURING RECESSION
- 12. 14/09/18 12 Philips International built their global alignment programme around NPS to grow revenue and drive action 5ALIGN ORGANISATIONAL SILOES AROUND THE CUSTOMER FEATURED CASE
- 13. “We liked NPS because it represented a single standard on which all the businesses could agree. Every sector had developed its own unique approach to customer satisfaction metrics and they all wanted to continue with their existing system, but few of them were getting results, and none of the existing systems linked to financial performance. That’s why we had to look outside for the right solution. That’s one of the biggest advantages of NPS – it ties directly to revenue growth, and it drives action.” Geert Van Kuyck Former CMO, now EVP at Philips 8 Ways in which NPS can add value to your business © FUTURELAB PHILIPS INTERNATIONAL BUILT GLOBAL ALIGNMENT PROGRAME AROUND NPS
- 14. 14/09/18 14 Philips uses NPS to drive revenue growth 6MAKE “CUSTOMER HAPPINES” A HARD METRIC FEATURED CASE
- 15. Customer Values 8 Ways in which NPS can add value to your business © FUTURELAB PHILIPS USES NPS TO DRIVE REVENUE GROWTH
- 16. 14/09/18 16 Dental hygiene company gains competitive advantage via highly tailored competitive strategies 7IMPROVE YOUR COMPETITIVE POSITION FEATURED CASE
- 17. What are drivers of promotion/detraction compared to competition? Decision maker Influencer/Recommender When comparing your NPS data to that of your competitors, you can identify the strenghts and weaknesses of your own products as well as those of the competition. Segmenting these views by customer audience, allows you to develop highly tailored competitive strategies. 8 Ways in which NPS can add value to your business © FUTURELAB DENTAL HYGIENE COMPANY GAINS COMPETITIVE ADVANTAGE VIA HIGHLY TAILORED COMPETITIVE STRATEGIES
- 18. 18 Futurelab/BrandExpress/EurodataResearch,2009 Looking at your competitive NPS data from a regional perspective, can introduce a geographic dimension into your competitive strategy. This allows you to prioritise resources in those geographic areas where you are weak, while at the same time bolstering your position where you are strong. 8 Ways in which NPS can add value to your business © FUTURELAB COMPETITIVE NPS DATA FROM A REGIONAL PERSPECTIVE CAN INTRODUCE A NEW DIMENSION IN YOUR COMPETITIVE STRATEGY
- 19. 14/09/18 19 How Holcim, Commerzbank and a Direct Sales Company created brand ambassadors 8MEASURABLY CONNECT AND DRIVE PEOPLE ENGAGEMENT FEATURED CASE
- 20. Creating promoters for your business will cause employees to be “touched” by a higher proportion of happy customers. This in turn will boost employee morale and subsequently the desire to provide ever better service. This does however also require employees to be promoters of the company and its products. Image attribution: Rob Markey, Bain & Company Customer/Employee engagement is contagious 8 Ways in which NPS can add value to your business © FUTURELAB Warning: this works 2 ways Case: Holcim (cement) In countries where employees are 10% more likely to promote Holcim, NPS is on average 18 points higher Case: Commerzbank Would you recommend the bank to friends or family: • 32% no • 28% conditionally Case: Direct Sales Company (Baltics) • Recommend as employer: + 48% • Recommend products: - 7 % CREATE BRAND AMBASSADORS FROM THE MOST ENGAGED CUSTOMERS AND EMPLOYEES
- 21. 14/09/18 21 IDENTIFY ACTIONS THAT WILL MAKE THE BIGGEST IMPACT ON YOUR BUSINESS NPS can create real value across your business. But when you are “in the trenches”, it’s not always easy to see the forest from the trees. That’s why we’re offering free, no-strings-attached consultations to people responsible for NPS programme in their organization. During the consultation we can confidentially discuss your specific goals and challenges and identify the strategic next steps (as well as quick-win actions) to help you take your NPS programme to the next level and create more value for your organization. Feel free to reach to us at info@futurelab.net with any question you might have about getting the most out of your NPS programme. FUTURELAB