How a business that already had customer-focused product development embedded in its DNA used Net Promoter Score® to enhance its service, improve customer happiness, and increase revenue.
W. & L. Jordan GmbH is a German third generation family-owned flooring and home textile wholesaler that sells to small-medium sized businesses. Its consistent focus on the customer has seen it expand to more than 50 stores across Germany, Austria, and France.
Prior to 2011, the business ran occasional 10-20 question customer satisfaction surveys, which helped it to keep a finger on the pulse of customer needs. But in 2011, the business implemented the first of its now-annual Net Promoter surveys, in collaboration with CustomerGauge partner j/s/w Consulting and using the CustomerGauge platform.
The Net Promoter surveys returned 35-40% response rates (significantly higher than its previous surveys), and revealed to the business new information on how it can improve its customer satisfaction.
With the CustomerGauge system’s comprehensive suite of automatic reporting tools, the organisation has implemented a series of steps that have created a self-propelling cycle of customer service improvement. Store managers are given the information to strengthen individual customer relationships and its Net Promoter team is able to track how overall, regional, and store-level customer service is evolving.
Said Head of Marketing Norman Virks: “For us, a real benefit of using Net Promoter is how it has armed our store managers with the knowledge to find out whether a customer’s issue is a regular occurrence or an isolated incident.”
Its Net Promoter Score has improved from +29 to +38, with a corresponding improvement in business performance.
The organisation is now running its third survey flight, and eagerly looking forward to see how its results compare to previous years and uncover the information that will drive its customer experience to a new level.
Net Promoter News: Hubspot’s interview with Net Promoter’s creator, A Twitter NPS survey, Amex swipes employee churn
Hubspot interviews Fred Reichheld, Hubspot employee runs NPS survey on Twitter handle
This week, marketing software biz Hubspot’s CMO Mike Volpe interviewed Fred Reichheld, the creator of Net Promoter, on his thoughts on the system’s relevance for B2B v B2c, and whether it should be a metric that marketing cares about. His answer was unequivocal:
“Most marketers recognize how relevant NPS can make their function. It links their world to the world of the CFO and finance — because it is possible to calculate the economic value of a promoter, passive, or detractor in each customer segment,” he said.
In related news, Hubspot says it is a “big follower” of Net Promoter – and the organisation is not kidding. Recently a Hubspot ecommerce expert, Sam Mallikarjunan, ran a DIY Net Promoter survey to find out how many of his 70,000+ Twitter followers would recommend following him.
Over Twitter he told CustomerGauge that his Twitter handle recorded an NPS of +18. It’s an entertaining handle to follow – Sam identifies himself as being here to “smoke cigars, drink scotch & kick ass” – and has a very engaged follower base, so the score is perhaps a little lower than one may expect. But according to survey feedback, people want to see more questions and answers (interaction) rather than links.
If you are interested in following a highly engaged expert on ecommerce, and inbound marketing, we have no problem “recommending” @Mallikarjunan as an account to follow.
And if you would like to learn more about how marketers can use Net Promoter, click here to read the full interview with Fred Reichheld.
Amex swipes employee churn with Net Promoter
Net Promoter buffs may know that American Express implemented a Net Promoter system way back in 2006, and real tragics may even be aware that the company sees a 10% to 15% increase in spending and four to five times increased retention from its Promoters.
But what is less well known is the positive benefits the organisation is seeing on employee retention and engagement. Notes Jim Bush, executive veep (world service), the organisation compensates according to two outcomes: Customer satisfaction, and operating margin. This approach has helped drive down employee turnover and helped the organisation contain costs associated with service operations.
Not coincidentally, according to the Financial Times, “As of May 2013, the consensus forecast among 26 polled investment analysts covering American Express Company advises that the company will continue to outperform the market. This has been the consensus forecast since 2009.” Business Standard
- According to a review of the latest Nokia Lumia, “owners who had opted for the previous striking red and yellow models rated the device more highly [with Net Promoter] than those who had chosen plainer colours.” The Register
- Financial tech biz Direct Capital has announced that its NPS has reached +65, versus “a financial industry average of +23.” The announcement is interesting because the high NPS correlates with a 2012, and is in the top five independent vendor finance company in overall organic growth, according to Monitor. Press release
- IT Services biz OneNeck® has announced its Application Management Division has recorded an NPS of 79, based on a recent DIY Net Promoter survey. Press release
Webinar: A Good Day to Act Hard: Take Action on Customer Feedback in 3 Simple Steps (Friday, May 17)
Make sure that your business acts on every piece of customer feedback, and start today. And look like an Action Hero.
Our May 17 Webinar: Take Action on Customer Feedback in 3 Simple Steps, will outline the key ways organisations should use feedback as a source of actionable insights to close the loop with customers and make the business more customer-centric.
Click here for details, or below to register immediately.
Recently, we introduced the CustomerGauge Digital Signage, a tool that narrowcasts customer feedback within the organisation, and which has become a focal point for staff collaboration.
This has proven to be a real driver of internal excitement for businesses as the voice of the customer finds a permanent place inside the organisation. But at a time when up to 80 percent of potential buyers agree with the idea that online reviews influence their purchase decisions, if you want to share positive feedback with people outside the organisation, you don’t need an intranet notice, or an internal memo.
You need a megaphone.
The CustomerGauge Testimonial Sharer is a tool that enables you to publish selected customer testimonials on your website, in-store or elsewhere, with just one line of code. Unlike the Digital Signage, the Testimonial Sharer does not narrowcast, but can be used to broadcast testimonials to potentially hundreds, thousands, or even millions of leads.
How to use it
Because it is customisable, there is a wide range of possible uses for the Testimonial Sharer. It can potentially be used to share:
- Select positive customer feedback on a public website or in a public physical location such as a shop floor.
- Unfiltered or partially filtered comments with registered users.
- Full comments and details on an intranet.
- Can be shared via URL or by adding an iframe to your site HTML.
- Can be customised to fit in with the look and feel of your website, including font, colour, border, and other style options.
- Looks equally attractive on desktop, mobile, and across operating systems, which is increasingly important as more and more shoppers start their purchase journey on their mobile device.
- Can create multiple versions, which means different testimonials can be displayed on different product pages or brand websites.
- Comments can be approved individually, filtered by score so that only Promoter feedback is shown, or filtered by location, store, or language to make sure people see only relevant recommendations..
- Scores can be displayed by number, with a star rating, or hidden altogether.
- Dates and other segmentation data can be displayed or hidden as required.
Do you have customer feedback that you’re proud of? If you are already a CustomerGauge user, speak to your client operations professional about introducing the Testimonial Sharer to your marketing arsenal. If you are new to CustomerGauge, please contact firstname.lastname@example.org.
Note: This case study for Dörken MKS Systems is the second in a series of German-language cases. For the English version, click here: Dörken MKS Systems: How a technically focused business started a systematic approach to Net Promoter with CustomerGauge
Dies ist die zweite, in einer Serie von deutschsprachigen CustomerGauge Fallstudien.
Klicken Sie hier um die erste Fallstudie zu lesen:
Melitta: Kaffee und Kundenservice – eine erstklassige Mischung?
Dörken MKS Systeme produziert und konfiguriert unter dem Markennamen DELTA-MKS® Korrosionsschutzsysteme für die Automobil-, Windkraft-, Bau- und Schifffahrtsindustrie. Das Net Promoter® Projekt wurde in 2011 in Kooperation mit CustomerGauge gestartet.
Das in Herdecke ansässige und Niederlassungen in den USA, Südamerika, China, Korea und Japan unterhaltende Unternehmen machte sich neben seinen Korrosionsschutzprodukten zudem einen Namen mit einem hochwertigen technischen Service und bietet darüber hinaus Produkte an, die komplexen Normen und Spezifikationen gerecht werden.
Das NPS Projekt wurde eingeführt um einen neutralen Einblick in das Kundensentiment zu erhalten. Die Ergebnisse haben diese Erwartungen übertroffen, da viel nützliches Feedback gewonnen und ausgezeichnete Ergebnisse erzielt wurden. Dörken MKS, das innerhalb seiner Branche ohnehin bereits als führend im Bereich Kundenservice gilt wurde Ende 2011 als Best Professional Supplier in der Kategorie „Roh- und Halbfertigprodukte“ ausgezeichnet.
Die Dörken Projektleiterin kommentiert: „Das Echo innerhalb des Unternehmens war großartig und die Leute waren sehr neugierig darauf zu erfahren, was ihre Kunden zu sagen haben.“
Es freut uns ein technikfokussiert Unternehmen wie Dörken MKS mit hervorragendem Kundenservice zu unseren Kunden zählen zu dürfen.
Net Promoter News: Vistaprint’s repeat purchase fine print, Telstra’s cash splash for service, Volume turns up VoC in agency land
Reading the fine print in Vistaprint’s repeat purchase slowdown
According to at least one analyst, photoprinter Vistaprint is exhibiting concerning signs for the investor. Our Seeking Alpha pundit notes that the business has:
- Acknowledged its 2016 revenue and earnings targets will be difficult to reach.
- Displayed a lack of clarity regarding its short term prospects.
- Decided it will no longer give quarterly guidance.
- Grown very large in an industry with low barriers to entry and therefore at risk from nimble competition.
Furthermore, according to the business’s statements at its earnings call, its year-on-year repeat order growth has slowed sequentially – a red flag for customer service pundits that is often a sign of decreasing customer loyalty. Oh dear.
But according to boss Robert Keane, there is a good reason for the slowdown in repeat orders. Previously, the business has aggressively advertised and discounted its products. This was an effective tactic to drive near term repeat purchases. However, it was much less effective at nurturing truly loyal customers – which is one of the most effective ways to grown revenue.
With this in mind, the business has improved its pricing transparency, reduced the level of discounting, and brought overall prices down in an effort to nurture more sustainable and valuable repeat purchases. One sign that this strategy is paying off is that while volume of repeat orders is down, average order value from repeat purchases are growing. Furthermore, the business has once again reiterated its “strong” Net Promoter results (without giving too much away, it must be noted).
Nimble new competitors may materialise, and no doubt there are other challenges ahead. But after reading the fine print of its earnings call, the business appears to be making an effort to nurture customer loyalty. Seeking Alpha
Telstra offers cash splash for customer service
Aussie telco Telstra has enthusiastically embraced Net Promoter, and in another move to put a renewed focus on the overall customer experience, the organisation also announced that it is offering cash bonuses to more than 2,000 resellers and 350 Telstra-branded shops to improve customer service.
While rewarding superior customer service is good in theory, in practice it depends on how feedback is collected. As noted by our Australian partner Genroe:
“While incentivizing franchisees to improve customer service can be a good idea, the program will need to be carefully constructed to prevent gaming of the system. Where payments are linked to customer feedback scores there is a risk that front line staff (and their managers at the resellers) can actively try to alter the scores that customers receive.” Genroe Sydney Morning Herald
Volume turns up Voice of Customer in agency land
CustomerGauge client Volume – a full service B2B digital and innovation agency – is one of the few agencies worldwide that uses Net Promoter to bring the voice of its customers into the organisation. Read about how the business is using the metric in a non-traditional industry at the press release or our blog post: CustomerGauge client Volume dials up Voice of Customer in agency land
- Enterprise cloud security specialists MailGuard have published a graph that compares its Net Promoter performance against recognised global names. It’s a pretty graph, but we’d gently suggest it could be more interesting if the business benchmarked itself against direct competitors in the same market. Mailguard
- Trader Joe’s ranked highest among supermarkets in the 2013 Net Promoter Industry Benchmarks. Supermarket News
Net Promoter Vacancy: CustomerGauge is hiring! Sales Manager, North America for European SaaS Vendor
A fantastic opportunity to be US Employee #1 for a fast growing Amsterdam, NL based Software-as-a-Service company. The CustomerGauge cloud application already has many big-name international clients, including a half dozen US clients.
Imagine if you had a tool that was a driver of creating a customer-focused workplace culture, that helped staff quickly identify what needed to change, and which did so with neutral, authentic voice – the voice of the customer.
CustomerGauge’s Digital Signage is designed to meet these goals, by “narrowcasting” customer feedback and other selected information across any screen in the organisation simply by sharing a URL.
Where once impromptu conversations may have taken place around the watercooler, they can now be inspired by listening to the “Ultimate CEO” of the company – its customers.
Digital Signage Benefits
Having the Voice of the Customer permanently visible in the organisation means:
- A new focal point for staff collaboration.
- No need to guess what customers are thinking – it’s clearly spelled out where everyone can see.
- Staff have access to the intelligence they need to make incremental, bottom up change based on a neutral, outside voice.
- There is automatic recognition for work well done and automatic notice when there is an issue.
- There is a new level of transparency for the organisation as staff from the top down have access to the voice of its customers.
- Flexible configuration means you can show (or not) Net Promoter Scores and score trends, scores by country, comment carousel, firefighting, word clouds, static images, and much more.
- You can create and edit as many versions of the Digital Signage as you like (one for each office if you wish)
- If security is required, an IP white list can be set.
If you are CustomerGauge user interested in finding out more about the tool, please contact your client operations professional. If you do not yet use CustomerGauge, please get in touch with us at email@example.com
“I don’t know if anybody’s ever told you that half the time, this business comes down to ‘I don’t like that guy.’” Roger Sterling, Mad Men.
As any fan of Mad Men will know, in the agency world client-agency relationships can be unpredictable.
So one might imagine that Net Promoter® would be a popular industry metric to benchmark performance, increase retention and drive word-of-mouth buzz. After all, these are things it is being used for in a number of other industries globally.
Yet despite this potential very few agencies are using Net Promoter. And even less are doing so publicly.
But one CustomerGauge client – a digital and innovation agency headquartered in the UK called Volume – is pioneering use of the metric in an agency setting to gather feedback from its relatively small number of B2B clients, and seeing a number of benefits as a result.
An agency that aims to be world class in everything it does, Volume maintained relatively long-lasting client relationships even prior to implementing its Net Promoter program. Due to this, the agency knew it was doing a lot of the right things.
But the agency lacked an objective way to measure the strength of these relationships, and independent evidence of what it was doing right and what it could improve on.
Surveying with CustomerGauge
Using CustomerGauge to survey customers has a number of advantages for Volume that a DIY survey lacks.
The CustomerGauge dashboard delivers real-time feedback direct to the fingertips of key decision-makers in the organisation via a Twitter-like feed, which means that the organisation is being drip-fed the information it needs to know about what it is doing right and what it can improve on.
Perhaps because of the strength of its relationships, the quality of feedback and level of engagement given by Volume’s clients is among the highest we’ve seen in terms of specific information and actionable insights. Some of Volume‘s Net Promoter survey responses are so detailed they even commend individual staff members by name for a particularly outstanding effort.
Finally, as a third party independent platform, using CustomerGauge to gather feedback ensures that the responses are collected consistently and feedback and scores measured neutrally.
Benefits of Net Promoter
The agency is seeing a number of benefits from its Net Promoter program, including:
- Authoritative, transparent, and objective feedback it can take into client reviews.
- The ability to measure the performance of all departments in the business, as opposed to client-facing roles that are more often the focus of internal surveys.
- A recognised marketing tool that the agency can take into pitches, and external evidence to support agency awards entries.
- The ability to independently verify which people to put on which accounts, and a voice in the agency’s internal recognition program, which helps to enhance people’s careers based on outside, unbiased evidence.
The agency is seeing a number of benefits from Net Promoter, but of course embedding a Net Promoter program within the organisation does not come without challenges.
Net Promoter enthusiasts will know that once an organisation embraces the Net Promoter philosophy and makes it a part of the culture, there is little place to hide.
Now that the organisation has made Net Promoter a metric to measure its client loyalty, the organisation must continue to deliver the world-class work it is creating at the moment just to maintain its score – and improve to get a higher score. This is a challenge, but as Volume Chief Executive Chris Sykes notes, is “something our clients will no doubt be happy to hear.”
Volume’s current NPS stands at about +60 – a high score for any sector but particularly impressive in the competitive creative industry.
But more important than the score, Volume’s experience shows that despite a reluctance (or lack of awareness) on the part of most industry players, agency relationships don’t need to live and die according to Roger Sterling’s cynical view.
With the right software tools and willingness to embrace the philosophy from the top of the organisation down, Net Promoter can deliver actionable feedback into the agency organisation, provide supporting information for pitches and awards entries, and give the agency an added marketing tool that is widely recognised (and used!) by client-side businesses globally.
Read the full press release: Volume turns up Voice of Customer in agency land
Update May 1: Registrations are now closed.
Update April 29: Registration for the Denmark Net Promoter Round Table closes at 17:00 CEST on Wednesday, May 1.
Opmærksomhed til Danske virksomheder!
If you can read the above sentence, you will be interested in this announcement: SimCorp – a CustomerGauge user in Denmark – will be hosting a Denmark Net Promoter® Round Table on Friday May 3!
The Round Table will be sponsored by CustomerGauge, and attended by leading Danish and international businesses including Nilfisk, YouSee, and Softcom. Discussion will be open format, with attendees invited to share their Net Promoter insights and experiences.
If your business is running a Net Promoter program in Denmark, this is a great opportunity to network with customer experience professionals and exchange Net Promoter best practices.
What you can expect
- Discussion on Net Promoter best practices
- Net Promoter in the Danish market
- The latest CustomerGauge features
- The opportunity to network with customer experience professionals from leading companies in the market.
Friday, May 3, 10:00-13:00
The event is FREE.
Net Promoter News: Smaller retailers mobilise CX, Gamification: Coming to a contact centre near you, Sprint links higher NPS with lower churn
Fashion brands have a degree of mobile sass, says UserZoom
UX specialists at UserZoom have released research into the mobile website experience of four leading fashion retail brands – Kenneth Cole, Guess, Bebe, and the moonshine-sounding White House Black Market.
The results showed that each site has “room for improvement” in terms of the search experience. Overall White House Black Market recorded the highest Net Promoter Score, of +26.
A quick scan of the interwebz shows that White House Black Market is indeed something of an innovator in the mobile space, introducing such things as mobile fashion alerts, where “shoppers receive text messages when they pass through specific geo-fenced areas.”
Notwithstanding the fact improvements can be made, the findings also seem to correlate with a recent Wired article which suggests that smaller retailers are delivering a better customer experience than their larger counterparts, by integrating mobile to create a seamless experience across in-store and online.
Of course, we need to be careful before comparing the shopper experience of retail giants to relatively small fashion brands. For one, a Best Buy shopper looking for an iPhone will have the possibility of buying the same product from numerous online or physical store locations, whereas a shopper wanting to purchase their favourite niche clothing brand may have far less choice in terms of where they make the purchase.
Nonetheless, as retail giants such as Best Buy, Target, and Walmart have recently been reported to deliver good mobile experiences for their customers, yet continue to suffer the ill-effects of showrooming, it may be an opportunity to look to smaller rivals for inspiration on how to deliver that elusive seamless experience that will transform showroomers into shoppers and drive up customer loyalty. Digital Journal
Gamification: Coming to a contact centre near you?
Incentives and rewards change behaviour and improve effectiveness. But according to a post by Ben Werner of Microsoft Dynamics CRM, in the contact centre setting, traditional rewards and incentives do little to create an enjoyable workplace experience.
In order to drive up customer satisfaction and Net Promoter Scores, Werner instead suggests that contact centres should add elements of gamification to their workplace experience, such as ‘leader dashboards’ showing how many points, badges or other goals agents have reached and comparing it against their neighbours in real-time.
It sounds fun, and executed well could be a good driver of workplace culture. However, in our opinion, nothing beats a robust eNPS (employee Net Promoter) feedback system to ensure that staff become empowered stakeholders motivated to deliver exceptional service, rather than the passive mechanical voice at the end of the line that is the stereotype of the call centre. Forbes
Assalaamu ‘aleykum: CustomerGauge client launches eNPS survey in Arabic
Speaking of eNPS surveys, CustomerGauge client the Mohammed Y. Naghi & Brothers Group has become the first CustomerGauge user to launch an eNPS survey in Arabic. The consumer goods to foodstuffs distribution business is rolling out its survey to more than 3,000 employees across the Middle East with the platform’s eNPS (employee Net Promoter) survey tool. For full details, please see our recent blog post or the full press release.
Sprint links higher NPS with lower churn
According to its latest earnings call, the Sprint brand of Sprint Nextel has shown sequential and year over year improvement in its NPS according to “an important third party brand study.” The company said this correlates with reduced churn rates and is a positive sign as it focuses on recapturing as many of the 1.3 million Nextel subscribers it knows will deactivate in the next quarter. Seeking Alpha
- The 2013 US Net Promoter® Benchmark Study has been released, covering Financial Services, Technology, Online Services, Telecom, Insurance, Travel and Hospitality, and Retail. USAA (+78), Apple, Netflix (+50), Amazon (+69), Kaiser (+35), and Southwest Airlines (+66) are among the businesses leading the way in their respective industries. Press release
- OneNeck® IT Services announces its Application Management Division has earned a Net Promoter Score of 79 based on a recent survey conducted internally. Press release
Note to our non German-speaking readers: This is a short announcement to let our German audience know that we have translated case studies available. Regular updates to continue soon!
CustomerGauge ist ein Kundenbefragungs-System, dass die Kundenloyalität misst. Es lässt sich einfach und problemlos implementieren und liefert wichtige Kunden Insights, die Ihrer Firma helfen, kundenorientierte Entscheidungen zu treffen. Wir helfen sowohl deutschen wie auch internationalen, marktführenden Unternehmen wie Philips, Dulux, Vodafone, Melitta, Dörken MKS Systems, und Bavaria Film um Kundenloyalität automatisiert zu messen und in Echtzeit im Web-Frontend bereit zu stellen. Damit ermöglichen wir Ihnen, Ihre Bemühungen zu priorisieren und Maßnahmen entsprechend einzuleiten.
CustomerGauge freut sich, die Veröffentlichung deutschsprachiger Fallstudien bekannt zu geben.
Unsere erste Fallstudie ist Melitta, ein Unternehmen aus Minden, das seit 100 Jahren Haushaltsmarkenprodukte produziert. Diese Fallstudie gibt eine detaillierte Beschreibung wie dieser Hersteller, zusammen mit CustomerGauge und deren Partner j/s/w Consulting, das Net Promoter Programm für den Kundenservice eingeführt hat. Das Hauptaugenmerk liegt auf der automatisierten API Verknüpfung mit dem telefonischen Kundendienst und dem CustomerGauge System. Durch die API Verknüpfung (CustomerGauge Application Programming Interface) werden die Daten unmittelbar nach dem Kundenkontakt an CustomerGauge übermittelt und von CustomerGauge sofort versendet, was in einer Response Rate von erstaunlichen 60% mündet.
Erstergebnisse haben mit einem 50+ NPS alle Erwartungen übertroffen.
Kundendienstkoordinator Christoph Sundermeier kommentiert: „Es ist relativ leicht, die Kundenpflege so weit voranzubringen, dass die Kunden mit dem gebotenen Service zufrieden sind. Ganz anders sieht es aber aus, wenn man ein Niveau erreicht, bei dem die Kunden zu aktiven Promotern werden. Gerade deshalb freuen wir uns ganz besonders über die ersten Ergebnisse.“
Als Kaffee-Liebhaber sind wir begeistert einen Kunden zu haben, der nicht nur ausgezeichneten Kundendienst, sondern auch hervorragende Kaffeevollautomaten anbietet. Nebenbei bemerkt ist unsere Client Operations Managerin eine wahre Kaffeekennerin und empfehlt die Melitta Kaffeevollautomaten wärmstens. Das ist Lob von höchster Stelle!