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Net Promoter News: KFC’s mobile asker not so Finger Lickin’ Good, Schwab’s rebound, NPS’s gift to Edible Blooms, Philly Insurance catches the cream


Commentary on Net Promoter often refers to the metric as a single question. But often overlooked is the fact that equally important to the question “Would you recommend this product or service to a friend or relative?” is a follow-up question, most simply framed as “Why?”

In this week’s News about Net Promoter, we take a look at one example of a global brand that has implemented a survey without asking the follow-up question, and another that did not just ask the question, but implemented an entire system around customer feedback with stunning results.

KFC’s mobile survey less than Finger Lickin’ Good

Following a purchase of some good old fashioned fried chicken, eagle-eyed blogger Pete Abilla has spotted KFC using a seven point transactional Net Promoter survey, where 1 was presented as “Very Unlikely” that the customer would recommend KFC to their friends and family, and 7 as “Very Likely.” He had the presence of mind to take a screen grab and also share a few observations on his blog.

KFC-mobile-survey1-200x300.png

What’s to like

The survey was sent to Pete’s iPhone as he was in the car, presumably leaving the KFC after purchase. The availability of the survey on a mobile device makes for easy accessibility for the customer, and with smartphone devices well on the way to ubiquity in most developed economies, mobile surveys make a lot of sense.

The survey is simply designed and asks only one question – the classic Net Promoter question of whether the customer would recommend the restaurant to family or friends. As Pete notes in his post, the response rate to this survey is likely quite high.

What’s not to like

Net Promoter is a simple metric, and a Net Promoter Score is useful as a benchmark against which to measure your own performance. However, knowing your NPS does not help you improve your customer service per se. It is equally important to ask the follow-up question – "why/why not"? This is where you will find the nuggets of information needed to improve your customers’ experience. Adam Ramshaw of Australian NPS shop Genroe (and CustomerGauge partner), says that “NPS without feedback is like seeing your car’s speedometer but not having access to the brakes or gas pedal. You know exactly how fast you are going but have no way to speed up.” Seeing a high NPS on its returned surveys may give KFC employees a short-lived feel-good talking point (if the score is indeed high), but beyond that it has almost no use.

Also, Pete notes that KFC placed a small space between “Unlikely” and “Likely,” which he suggests “may be to better discriminate between choice options.” However, after managing HTML coding on these NPS surveys for some years, we suspect that rather than a deliberate design this may be a sign of inexperience on the part of the coder. It appears that the extra space has been added due to the width of the word "Unlikely" in the table cell. [Editors Note: At CustomerGauge we make sure all the options are equally spaced, and the label is vertically centered above the radio button to ensure this does not occur on our surveys]

Finally, with some care and attention, it would also be possible to create a standard 0-10 scale, so we’re curious why KFC chose to use a seven-point scale.

Do you have any observations of your own on KFC’s survey? Do tell us below! Source: shmula

Charles Schwab’s Net Promoter rebound

charles-schwab.pngSpeaking of the need to accumulate insights as well as scores, Charles Schwab offers an interesting case study of a firm that successfully used Net Promoter to turn its business around.

In 2004, the financial services firm was struggling, and in an effort to arrest its slide, it implemented a Net Promoter system (not simply a survey) in order to identify its weaknesses and transform them into strengths.

Crucial to the success of implementing a Net Promoter system is asking not one, but two questions as outline above, with the second being “What is the primary reason for your score?” – the question that KFC appears not to have asked in the survey above.

Based on responses to these questions, Charles Schwab developed processes for short-cycle, closed-loop feedback, learning, recovery and action, and made it a top priority to earn the enthusiastic loyalty of customers and employees through all echelons of the organisation.

The implementation of this system paid significant dividends across Charles Schwab’s business from improved customer experience all the way to the bottom line. By 2008, its stock had tripled, and it had regained its industry-leading position. Earlier this year, it earned the highest score for investment firms in the 2012 Temkin Experience Ratings, which analyzes feedback from 10,000 U.S. consumers to rate 206 organizations across 18 industries. Forbes

Net Promoter’s “incredible” gift to Edible Blooms

edible-blooms.pngIn Australia, online gift store Edible Blooms has recently implemented Net Promoter surveys, and according to Marketing Director Alex Andre, “the value we are getting out of it is just incredible.”

Alex outlines eight tips that Edible Blooms has learned from its experience with Net Promoter, but in the interests of brevity, one that we found particularly interesting is that although Edible Blooms surveyed customers prior to Net Promoter, since launching Net Promoter the company’s feedback response has increased by more than 10 times.

Part of this is no doubt due to the simplicity and speed of the survey for customers to fill out, but Alex also notes that Edible Blooms used to survey customers “too early, before they could really assess how we went.”

This makes for an interesting contrast with KFC, for which a survey within a couple of hours seems to be quite appropriate. Have you experimented with the timing of your transactional surveys? Maybe this can hold the key to increasing your response rate that extra few percent! MarketingMag

Philadelphia Insurance catches the cream

Soon after joining Philadelphia Insurance Companies in 2009, VP of Ops Seth Hall noticed that despite a number of different metrics and methods used to capture customer feedback and measure satisfaction (one of which was Net Promoter), the data which was being collected was not being put to use in order to effectively identify areas of improvement.

In an effort to bring the voice of the customer back into the business in a structured, consistent, and actionable way, the company implemented a customer satisfaction program in 2010 (that also included Net Promoter surveys). Philadelphia Insurance Companies has seen its NPS scores increase from the mid to upper 40s before implementing the VOC program to 51 at the end of last year.

The lesson of this experience appears to be related to the observations made above about Charles Schwab – getting feedback is important, but embedding it on the organisation, assessing and acting on that feedback is the real key. 1to1media

In Brief

  • Fred Reichheld, the brains behind the Net Promoter, was the keynote speaker at the 2012 CARSTAR Industry Conference in Ottawa, with his speech drawing heavily on NPS, customer satisfaction and retention, and how loyalty is linked to revenue growth and profitability. Collision Repair Mag
  • BMO Retirement Services has claimed its NPS has trended “generally upwards” since 2007. Sacramento Bee

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