An Introduction To Onva
- 1. An introduction to Onva How to gain a positive word-of-mouth advantage to drive sales and loyalty Delivering a word-of-mouth advantage © 2010 Onva Consulting
- 2. The business results Onva delivers Helped client outgrow market by 2.5 times Saved £7.25 million in customer acquisition costs by reducing each unit from over £75 per customer to under £3! 600% increase in revenue between adviser customers and normal customers Secured over 100,000 loyal customers New product launches most successful in client 50 year history Failing marketing initiatives identified and cancelled – saving significant sums Improved employee NPS by 35 points – more motivated, positive loyal and engaged © 2010 Onva Consulting
- 3. We live in the Recommendation Generation © 2010 Onva Consulting
- 4. The decline in traditional marketing 2% trust advertising 2% trust DM 15% trust customer opinions posted online 49% trust personal recommendations So 64% of people trust the opinions of others and not what you say © 2010 Onva Consulting
- 5. The Loyalty Factor • Creating secure revenueRepurchase • Presenting opportunities to cross-sell and up-sell and produce significant extra revenueBuy additional products • Driving new customers at less cost who then become PromotersRefer/ Recommend • De-risking decision making and creating effective marketing/sales collateralFeedback Research has shown that loyal customers/clients behave in four different ways. They... © 2010 Onva Consulting
- 6. Who knows best? You or those that invest in you? © 2010 Onva Consulting
- 7. The Onva Listen Methodology 1. Listen – Identify customers and employees that ‘love’ and ‘hate’ you – and the reasons why - by using Net Promoter 2. Involve – Drive Word-of-Mouth recommendations (on and offline) by creating a volunteer sales force 3. Sell – Improve Sales Effectiveness through customer input © 2010 Onva Consulting
- 8. How do you listen to your customers? © 2010 Onva Consulting
- 9. Net Promoter – The Ultimate Question © 2010 Onva Consulting
- 10. A globally trusted business metric © 2010 Onva Consulting
- 11. The brands that listen and drive customer loyalty © 2010 Onva Consulting
- 12. The Psychology of Recommendations Does your business miss, meet or exceed expectations on the promise that you communicate? Promoters Business is exceeding customer expectations and they actively recommend Passives Business is meeting customer expectations but they are word-of-mouth mutes and may defect Detractors Business is missing customer expectations and they actively bad mouth the product/service © 2010 Onva Consulting
- 13. Missing expectations The danger of not identifying and addressing the reasons for detraction Delivering a word-of-mouth advantage © 2010 Onva Consulting
- 14. We also live in the switching generation © 2010 Onva Consulting
- 15. The ultimate six pointer in business How long does it take you to win a new customer? How long does it take them to leave? How much time and money do you invest in acquisition? When you have won them, do you focus on them? Or just look for the next new customer? Wouldn’t it be great not having to replace churning customers with new ones? © 2010 Onva Consulting
- 16. Why do your customers leave? Percentage Reason 23% Unfair fees or charges 22% Poor product or service quality 19% Rude or disinterested employees 12% Couldn't get hold of anyone to deal with my problem 7% Discounts for new customers but not for existing customers 5% Out of territory call centres 4% Inadequate return or refund policy 1% Inadequate environmental policy © 2010 Onva Consulting
- 17. Missing expectation leads to... Creating more Detractors Draining budget They use costly resources while their issues are being addressed Churning They will ultimately defect to a rival Generating negative WOM Negative recommendations make it harder for a brand to attract new customers – thus substantially increasing the cost of operations/cost of customer acquisition. It is also three times more powerful than positive WOM. Therefore one potential customer upon hearing a bad experience will need four positive recommendations to change their impression/mind © 2010 Onva Consulting
- 18. And one bad experience …… © 2010 Onva Consulting
- 19. Reducing Detractors while growing Promoters pays off Increasing your Net Promoter score by 12% will deliver your business double the sector growth average Increasing your share of Promoters by 7% will deliver your business 1% growth Reducing your share of detractors by 2% will deliver your business 1% growth If your business has an above average NPS profile in its sector you could see 4x the growth rate * As discovered by the London School of Economics © 2010 Onva Consulting
- 20. What can you do to cut churn? Ask your customers Use the Net Promoter question to identify the main reasons people may want to leave Tell them what they told you and what you plan to do about it Identify the reasons you can deal with profitably Perhaps stop services that you can’t improve profitably © 2010 Onva Consulting
- 21. Your employee recommendability impacts the business If employees are detractors of the customer experience/service that they deliver it is highly likely to create detractors amongst your customers as well. Employee NPS Customer NPS © 2010 Onva Consulting
- 22. Exceeding Expectations An opportunity to drive sales and loyalty with your own volunteer salesforce Delivering a word-of-mouth advantage © 2010 Onva Consulting
- 23. How do you win new business? Do you know who will buy again? Do you know who will buy new products and services? Do you know who will recommend you? Do you know who will bad mouth you? Do you know which marketing/sales activities bring the best customers? Do you have a strategy for increasing your share of wallet? Are you stimulating conversations online and offline? Can you do this with total certainty? © 2010 Onva Consulting
- 24. What can you do to sell smarter? Segment your customers by Promoter, Passive and Detractor Develop different approaches for each Identify the NPS for each product/service, salesman and marketing activity – improve accordingly Activate Promoters – give them reasons and the platform to recommend Publish and share customer reviews © 2010 Onva Consulting
- 25. How strong is your WOM Balance Sheet? Word-of-Mouth (WOM) is synonymous with recommendations Businesses have a WOM Balance Sheet and the strength of this balance – your recommendability – is the key to your success © 2010 Onva Consulting
- 26. Exceeding expectations leads to... Generating more Promoters Greater customer advocates Repurchasing Creating secure revenue Buying additional products Presenting opportunities to cross-sell and up-sell and thus grow revenues Referring/Recommending Driving new customers at lower cost who become Promoters Providing Feedback De-risking decision making and creating unique marketing collateral © 2010 Onva Consulting
- 27. It’s about getting your Promoters talking Conversations between people who trust each other about content that interests or inspires Conversations and content you can’t control But conversations you can influence with content you help to create And conversations you can stimulate with direct engagement © 2010 Onva Consulting
- 28. Bring your promoters on the inside Give them VIP status Give them a purpose Business improvement for their benefit Reward them VIP privileges, first looks Deeper involvement Make things really simple VIP votes Capture their content Close the loop Regular feedback, inside scoops Feed them stories to share to drive sales Benefit from their ideas, advice and tips To set you apart © 2010 Onva Consulting
- 29. Retailers in the U.S., the U.K. and Europe say the following happened after putting customer- created reviews on their websites: 77% reported site traffic increases 56% reported improved conversion rates (= rate of site visits to actual purchases) 42% reported higher average order values Share reviews to build trust © 2010 Onva Consulting
- 30. A Simple Case Study Multi-award winning platform created by the Onva team Simple VIP - the largest UK consumer engagement panel with over 100,000 brand advisers in a year from a standing start Significant reduction to customer acquisition costs – 2500% less than direct mail! or £7.25m + in savings Significant increase in product trial – 98% of advisers try an additional 1-2 products Products launched via the panel get best response in 50 year history Free research helps feed PR, marketing and sales machine Outperforms market growth by 2.5 times Leapfrogs global giant to #2 in market © 2010 Onva Consulting
- 31. Let your customers guide you Who better to advise you than the people that invest in you? Free research platform that creates economies of scale Genuine insight into their behaviour De-risks marketing campaigns Directs business on where it misses/exceeds expectation Generates deep and lasting customer loyalty © 2010 Onva Consulting
- 32. Involvement increases advocacy and loyalty Work with multiple clients has proven that if a customer/client is directly engaged by the business, the Net Promoter score/levels of advocacy increases dramatically It has also proven that customers that arrive through personal recommendations have their expectations set correctly and become recommenders themselves © 2010 Onva Consulting
- 33. Checklist for sustainable growth Listen to customers – ask the Net Promoter question Remove the reasons people want to leave Identify your Promoters – target them with special sales offering Activate Promoters to drive a systematic referral stream Identify the strengths of your business by examining reasons for promotion – accentuate these in sales activity Tap into customer creativity to develop new ideas and unique content that sets you apart © 2010 Onva Consulting
- 34. What we will deliver you Millions saved and earned through efficiencies, increased loyalty, cross-selling....the list goes on Delivering a word-of-mouth advantage © 2010 Onva Consulting
- 35. Improving sales effectiveness We identify and ‘activate’ customers who will positively recommend – to help you win new customers We identify where you can cross-sell and up-sell and help you do this in the most effective way We identify ways to exceed expectations profitably to create more loyal customers so your competitors can’t steal them We help you remove the reasons for detraction so you no longer have to battle against negative WOM © 2010 Onva Consulting
- 36. Improving sales effectiveness We create powerful marketing collateral with customers that gives you an edge in the market We create trusted reviews from customers that increases your status as a ‘safe buy’ and improves the conversion rate of new customers We identify which marketing you can eliminate and which to focus on to reduce the cost of sale We listen to customer feedback and then help you develop a more compelling product/brand proposition and sales messages © 2010 Onva Consulting
- 37. Onva turns customers and employees into drivers of growth Listen Full Net Promoter audit and analysis service – the insight you need to make vital decisions Identify which customers and clients love or hate you Targeted approach to address needs and improve performance Identify the strengths of your business by examining reasons for promotion Sales and marketing effectiveness consulting and programmes Identify the weaknesses of your business through reasons for detraction Business improvement consulting and programmes including involvement and innovation © 2010 Onva Consulting
- 38. Expertise Crispin Manners – CEO and Founding Fellow of PRCA Crispin Manners is a recognised authority in harnessing the power of Net Promoter and Word-of-Mouth as part of an integrated sales, marketing and loyalty strategy. Crispin has over 25 years experience in delivering integrated communications solutions for businesses and brands. Discovering Net Promoter® has allowed Crispin to systematise his approach and to use customer feedback to build more compelling propositions for clients and to develop award-winning engagement programmes that turn customers and employees into advocates. Throughout his career he has created business momentum for his clients and his own business. He led his earlier company (Kaizo) to be the fastest growing PR Company in the UK in 1991, the #2 performer over a decade in 1997, the #5 best PR firm to work for in the UK, the OFEX Company of the Year in 2001 and the CBI’s Innovative Company of the Year in 2003. He is a natural facilitator, a skilled mentor and valued for the strategic choices he uncovers for his clients. © 2010 Onva Consulting
- 39. Expertise Matt Manners – Director Matt Manners is an award-winning marketing and PR professional with over a decade’s experience. Over the past two years he has been focused on empowering businesses through Net Promoter®, to directly engage with customers, drive up levels of customer advocacy, sales and deliver a word-of-mouth advantage. Previously he worked as a PR professional in both London and Sydney for two of the world’s largest PR firms – Weber Shandwick and Burson-Marsteller. He has worked across brands such as PlayStation, Siemens, PalmOne, Simple, Unicef, Hewlett Packard, Castrol and the Football Federation Australia. His ability and experience allows him to ascertain the needs of a business rapidly and to implement a successful, customer loyalty and communications strategy that delivers targeted results. © 2010 Onva Consulting
- 40. Questions? Contact Crispin Manners +44 7774774272 Or Matt Manners +44 7799876473