ge capital solutions
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detractor. passive. promoter. GE Capital Solutions. Operationalizing the Net Promoter Score (NPS). Broadband Cable Association of Pennsylvania (BCAP). Brian Fedigan VP – Customer Experience May 6 th , 2008. GE Capital Solutions. World’s leading leasing and finance business. - PowerPoint PPT PresentationTRANSCRIPT
GE Capital Solutions
Operationalizing the Net Promoter Score (NPS)
Brian FediganVP – Customer ExperienceMay 6th, 2008
detractorpassivepromoter
Broadband Cable Association of Pennsylvania (BCAP)
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World’s leading leasing
and finance business
GE Capital Solutions
Leasing, lending and financing to help businesses grow
• equipment financing
• vendor programs
• inventory finance/floor planning
• franchise finance
• state and local government programs
Franchise
Finance
Fleet Servic
es
Equipment
FinanceServices
GlobalElectroni
csServices
CanadaMexico/
Latin America
Europe
CommercialDistribution
Finance
Xerox Capital Services
Asia
GE Capital Solutions Businesses
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•NPS 101
•Leadership Engagement
•Building the Infrastructure
•Listen & Act
•Driving a Customer Centric Culture
Agenda
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What is NPS?
NPS is a NPS is a Culture ChangeCulture Change effort effort to drive to drive Customer ExcellenceCustomer Excellence
NPS is not another VOC initiative
NPS is not market research
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The roots of NPS
Fred Reichheld:
Consulting Magazine named him one of the "25 Most Influential Consultants" in 2003
His work has appeared in The Harvard Business Review, Wall Street Journal, New York Times, Financial Times, Fortune, Business Week and The Economist
The Ultimate Question, Fred Reichheld, Harvard Business School Press, 2006
“On a scale of 0 to 10, how likely is it that you would recommend our company to a friend or colleague?”Extremel
y likely
Not at all likely
10 9 8 7 6 5 4 3 2 1 0
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How is NPS determined? “On a scale of 0 -10, how willing would you be to recommend [GE Capital Solutions] to a friend or colleague?”
% Promoters
% Detractors
0 – 6Detracto
rs
7 - 8Passively Satisfied
9 - 10Promoter
s
109
87
654321
% Net promote
rs
0
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Value of Customer Loyalty…NPS is the best predictor of customer likelihood to repurchase or refer…
•4,000 customers
•12 Industries
•10 years
Cost of Sales
Loyalty
Repurc
hase
Rate
%
• A satisfied customer tells 3 others to purchase
• A dissatisfied customer tells 9 others NOT to purchase
• It takes 12x to win back a dissatisfied customer
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Correlation for Cable and Telephony Customers
Source: The Power Behind a single Number: Growing Your Business with Net Promoter, a Satmetrix White Paper.
82%
48%
22%
detractor passive promoter
NPS Rating
Purc
hase
& R
efer
ral
Rate
s (c
ombi
ned)
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NPS is not:A Stand-alone VOC Metric: It is a measure of a customer’s willingness to recommend you and repurchase your products and services.
A Complete Diagnosis of Root Causes: NPS will not tell you why the customer gave you such a rating.
A Guarantee That Your Business Will Grow: To grow, a business has to act upon the ratings it receives.
A Customer Satisfaction Measure: A customer could be satisfied, but not feel as if they would go the extra yard in actually recommending GE to a friend or colleague.
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-10
-5
0
5
10%
-10 0 10 20 30 40 50 60
AmericaWest
Alaska Airlines
TWA
Southwest
USAir
ContinentalNorthwest
Delta
United
AMR
3 Year Growth (1999-2002)
Net Promoters
$10B2002
Why NPS?… It’s a growth tool
NPS is correlated with growth across a wide range of industries and markets.
Our P&Ls that had higher NPS scores, also experienced the higher growth.
R2: 0.68
Source: Fred Reichheld, Bain & Company
NPS Score
’99
-’0
2 G
row
th
NPS and Growth True for Capital Solutions
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Does NPS correlate to organic growth? For TFS…..Absolutely!
-4%
+2%
+6%
Non-promoters
Promoters
On Total Revenue, promoters do generate higher revenue Vs non promoters…
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o Confusion between NPS research and NPS operating system
o Bolting NPS onto existing (failed) feedback processes
Its not research….simplify your survey & feedback process
Ask the NPS question, talk to the customer, find the learning
Two “Best In Class” Solutions
Do It Right
Two Common Errors
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It’s not really about the score…
It’s not even about the change in the score…
It’s about a process to understand the expectations of your best customers and to consistently meet those expectations
1. Develop a solid NPS process to match your business
2. Figure out why customers are detractors or promoters
3. Use that understanding to drive growth
The Overarching ObjectiveGROWTH through understanding and delivering CUSTOMER VALUE
Best metric of likelihood to repurchase
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The ultimate in customer loyalty…
Commit/Leadership Engagement
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NPS in GE“NPS is the best formula I have seen in my career here……and I want everybody to get on board”
Jeff Immelt(CEO,GE)
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NPS Is Every Leader’s Job
1. Understand your NPS results
2. Identify and resource NPS priorities
3. Drive accountability for NPS improvements
4. Make NPS integral to your growth strategy
Building The Infrastructure
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Customer responses
stored
Wing To Wing NPS Feedback-Automate
NPS leader creates target customer list VOC vendor surveys
desired customer(s)
Reportsgenerated and
sent to NPS leader
Functional and Business Leaders champion
improvement/growth opportunities
Update on action(s) taken
sent to NPS leader
Postcard notifications are sent to target customers
Red/Green Alerts
Generated
NPS leader routes alert to functional
leader
Functional leader follows up with
customer
Follow up actions
documented
NPS leader updates
customers on action(s) taken
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Connecting NPS Feedback To AM’s
NPS Databa
se
PUSH
PULL
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Cap Sol: NPS Summary – (GE vs. Comp)
Results drilled down through the org hierarchy. Detail available through “Link”
on right side.
Listen & Act
AnalyzeSegment Survey Actionable
Include dormant & new customers
Survey at capacity to act
Follow up with passives & promoters
Share audio verbatims across the organization
Find patterns
Use customer experience councils
Resource with cross-functional teams
Implementing “Listen”
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Verbatims – 2007 vs. 2006
Admired areasAreas of improvement
-2%
-3%
-9%
-12%
-3%
-5%
-39%
1%
2%
2%
4%
7%
23%
Cycle time
Investor database
Others
Product Structure
OperationalEffectiveness
People
Responsiveness
8%-20%
15%-10%
3%-20%
3%-12%
4%-8%
2%-5%
1%-4%
NUMBER OF RESPONDENTS, N=130(2007), N=120(2006)Responsivene
ss
People
Operational EffectivenessProduct
Structure
Others
Investor Database
Cycle Time
2006 verbatims
2007 verbatims
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Verbatim Deep Dive-”Detractor”
80% of AM issues around servicing the account and controlling expectations
53% 28% 7% 12%
Account Manager
Product Credit All Other Issues
59% 20% 11% 10%
Service
Availability & Responsiveness
Personal Behavior
All Other Issues
Main Reason for 0-6 score…
N
NN
N
N
N
NN
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Customer Experience Council
Inputs & Actions
1.Verbatims2.NPS Scores3.Confirm survey
structure4.Review
previous survey & follow-up actions
Discussion
Customer
Council (CEC)
ActionX-functional Membership
Outputs & Deliverables
1.Alert follow-up2.Track Results3.Define action plans4.Execute on actions or
champion/drive Lean events
5.Establish ownership
Implementing “Act”
Tactical Strategic
Call detractors in 48 hrs.
‘Loyalty Leader’ to coordinate
Create action plan by customer & track aging
Identify systemic fixes
Prioritize Lean projects
Prioritize innovation $
Measure customer retention
Do 3 month follow up
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48 hour red alert follow-
up
Initiated thru automated, P&L
specific, alert workflow process
acknowledged effort to
connect with customer
Customer follow-up – tactical approach
NPS scoresVerbatims
Discussion
Customer Loyalty Council (CLC)
Action
detractor
passive
promoter
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0%10%20%30%40%50%60%70%80%90%
100%
Survey-
1-05
Survey-
1-06
Still Open
Closed
Closed On Time
Total Cases - 26
Open - 10No action 8No owner name 2
5
6
1
4
0
1
2
3
4
5
6
7
1 day 2 days 4 days 5 days and
Number of days for resolution
Clo
sed
cases
Turn Around Time
Closed Issue Details- 16Documentation 8Funding 7Communication 1
Open Issue detailsCredit 8EOT 2
Avg. TAT: 2.81 days
Red Alert : Details
Closed Cases-Trend
(N)
(N)
(N)
(N)
(N)
(N)
(N)
(N)
(N)
(N)
(N)
(N)
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21.7% 24.6%
45.8% 41.5%
32.5% 33.8%
2006 2007
Promoter
Passive
Detractor
10.8% 9.2%
NPS Investor Results
2008 NPS Customer “SWAT” Team
22.3% 14.3%
32.0% 39.6%
45.6% 46.1%
2006 2007
Promoter
Passive
Detractor
23 % 32 %
Focus areas:Communication/relationship Fred
Debi Chris Tom *
Syndication process Scott SueJohn*
Market intelligence John Melanie
John Steve*
People Craig JenniferKim*
Internal Survey Swat Teams
NPS Customer Results
Focus areas:
Operational effectiveness Dan Kim Sally*
Investor relationship KarimDan Ken*
•Creativity •Effectiveness•Know customer needs•Other
•Documentation•Communication•Transparency•Post deal process•Cycle times
• Bidding process• Understanding investor
needs/strike-zone• Integrity• IT• Feedback• Response time• Documentation
External Survey Swat Teams
•Knowledge•Training
* SLT champions
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21.4
days
4.7day
sAug ‘07 Dec ‘07
-4.6X3Delivering results
‘07 Fleet Volume+30% Vs OP
• Slow• Too many handoffs• NPS = 5 (detractor)
1NPS feedback
• Cross-functional team work-out + SLTs• 90 days advance alert• Closing specialists
2 LEAN event
Driving Growth – cycle timeMexico – fleet, vehicle lease renewals
Driving Customer Centric Culture
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“Culture”
• Say “customer” more
•Define your businesses framework for “Listenand Act”
Communicate “Customer”
Framework
Shift Focus
Verbatims • Broadly across the organization
•Segment more, survey less…, from score to action
Implementing Cultural Changes
Push down in the organization
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Driving Engagement..one employee at a time
•Personalize the customer experience for individuals
•Targeted communication plan for each level•CE Newsletters, Dashboards, Success Story
•Focused Customer Experience Training•Understanding Customer Moment’s of Truth
•Aligned org. metrics @ each level tied to G&O’s
•NPS Awareness Campaign
•NPS/Lean eLearning
•nice! Reward & Recognition Program
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= The Way we Work
Educate people on the system…frequently!
– Calls, meetings, training sessions – do it live!
Involvement & Ownership
Focus on the big picture– Keep published reports at a high level– Drive the actions not the number
Look for training opportunities
Communicate examples of customer praise
NPS
(Loyalty)
Roadmap
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Roadmap
Leadership Engagement
Enable cross-functional engagement with senior leadership team
Make loyalty part of the growth council
Regular operating and reporting rhythm
Identify top 3-5 growth opportunities
Loyalty learning from NPS VOC
Identify champions to drive the growth opportunities
Define strategies for leveraging Promoters and converting Passives
Lean workouts for process issues to recover Detractors
Launch communications plan
Top 3-5 Opportunities
Actions
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Roadmap
Communicate
Internally:
NPS customer success stories
Proven results
Customers:
What we heard from you
Actions we are taking to improve
Shorter surveys & more responses
More open-ended feedback
Engage SLT in the follow up process
Consistent across all P&Ls
Refine the Methodology
Drive Strategy
Incorporate NPS into strategic account planning
Top account portfolio reviews across CS
Define actions to migrate Passives and leverage Promoters
Continue to fix Detractor issues with LEAN
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Key success factors1. Leadership team support … don’t start without it
2. Know your business challenges and what NPS should deliver
3. Determine owners, report out processes, …all operating mechanisms
4. Determine methods that work in your market – Target high response rates
5. Relish the low scores
6. Weed out Legacy surveys buried within your business
7. Questionnaire comes at the end ... Once you know what you want to know … to do what
8. Use Change Acceleration Process (CAP) tools … This is Cultural change
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The ultimate in customer loyalty…
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