how to become a trusted advisor: kano as a way of making importance performance & nps data more...

HOW TO BECOME A TRUSTED ADVISOR: KANO AS A WAY OF MAKING IMPORTANCE PERFORMANCE

& NPS DATA MORE ACTIONABLE

Redshift Research

RedshiftResearch

ARE YOU LOOKING FOR THE KEY MOMENT WHEN YOU BECOME

• A trusted advisor to your client

• With strategic planning sills

• And can start talking to other parts of the client’s business?

Well, you might need to put comms objectives to one side and understand how to make their customers happy

Redshift Research | Presentation Template2

•Where better to start than the Net Promoter Score, backed up by a bit of KANO...?


SO WHAT’S THE NET PROMOTER SCORE?

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Pioneered by Fred Reichheld, NPS is a customer loyalty metric

It predicts the likelihood of a customer recommending your company to a friend or colleague.

Proponents argue it’s the only measure you’ll ever need to assess the health of your business

NPS Benefits

It’s a single metric

It acts as a kind of ‘health check’

It has international standing

It’s widely used and accepted by corporates

It’s easy for organisations to use and quick for customers to provide feedback e.g. -44, +23 etc.

So it’s easy to see the impact of changes made since the last time it was measured

So you can compare your performance against your competitors, suppliers etc. in some markets

A SINGLE QUESTION AND A SINGLE CALCULATION

Q How likely are you to recommend company/brand/product Xto a friend/colleague/relative (score out of 10)?

• On its own it doesn’t tell you what’s caused “things” to change

• It’s limited as it measures only one dynamic, the likelihood of recommending

• It doesn’t measure issues such as loyalty, satisfaction, trust or the likelihood of repurchase. (We’ve seen some horrendous NPS scores but, in some cases, the “pain” of change is so great it’s unlikely to impact the business in the short term)

•But, it’s a great first point for assessing performance!

BUT ….IT HAS LIMITATIONS

DEEPER ANALYSIS: NOT ALL ATTRIBUTES OF PERFORMANCE ARE EQUAL IN THE EYES OF THE CUSTOMER: INTRODUCING THE KANO MODEL

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Noriaki Kano

Professor Emeritus

Tokyo University of Science

In the late 1970s Kano challenged the conventional belief that improving each attribute of a company's product or service will lead to increased customer satisfaction. Kano believed:

Some attributes create higher levels of customer loyalty than others.

Factor Potential impact on reducing NPS detractors (people scoring 6 or less)

Potential impact on increasing NPS promoters (people scoring 9 or 10)

One dimensional/Satisfier

Raising performance will have an impact


Must-be/Basic Raising performance will have an impact

None, no matter how high the performance

Attractive/Delight None, no matter how poor the performance


Indifferent None None

not all attributes of a product or service performance are equal in the eyes of the customer,

TO UNDERSTAND WHICH ATTRIBUTES ARE IN THE ‘DELIGHT’ CATEGORY CAN ENABLE YOU TO INCREASE ADVOCACY EXPONENTIALLY

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INSIGHTS AREN’T JUST FOR STRATEGIC PLANNING

•Ultimately clients have to “walk the walk” to bring about a real change but with targeted messaging you’re onto a winner

WALKING THROUGH A KANO EXAMPLESo looking at an example in the data storage market, testing 24 factors, this is how things could fall out….


e.g. Taking 24 ‘Features’ we found 9 were Basic requirements, 8 were Satisfiers, 1 was Indifferent and

4 were Delighters

@Copyright 2012 ADP, Inc. Proprietary and Confidential Information

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Workplace recovery

The service enables you to reduce internal knowledge risks and

reduce costs

A 24 hour helpdesk is available for minor

software queries and problems

All data corrections and amendments are

completed by your software provider

Implemented service and system meets the

agreed budget

On-site help and assistance during initial

use of system

The data is easy to enter or import into the software

Customised reports are provided as part of the service when you need

them

Software provider takes responsibility for system

changes for your business

It is easy to export data from the software for use

in other systems

Offered a 2 week testing window to test all services provided

by the software prior to parallel run

Local availability of multiple network providers

You experience service level continuity

through software specialist change

Regular contact with the software provider

to review your business needs.

Implementation is consistent with the

expectations from the sales process

Local availability of cloud providers &

other business partners

Near perfect task accuracy rates are always achieved

Provider can manage functions of the system

within your working practices

High density environments

Software can produce reports that allow you to

manage its function

Provide you with advice to ensure you remain

compliant with legislation

The software provider follows up to resolve all bugs and issues post

implementation

Response to enquiries are made within the

agreed timeline

Resilience of data centre infrastructure

Delighter Satisfier BasicIndifferent

Looking at NPS influence in combination with satisfaction performance we can isolate those with the negative impact

So identify where remedial action is needed immediately

OVERLAYING PERFORMANCE ON TOP OF KANO CAN OFFER A SHORT LIST OF RECOMMENDATIONS

E.G. 4 CAN HAVE THE BIGGEST NEGATIVE IMPACT ON NPS AND COULD CONTINUE TO CREATE NPS DETRACTORS IF UNATTENDED TO

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The service enables you to reduce internal knowledge risks and

reduce costs






agreed budget


use of software



them




in other systems






Implementation consistent with the





Provider can manage functions of the

software within your working practices



manage its function




implementation


agreed timeline


Delighter Satisfier Basic Indifferent

Quality of the support provided within the data

centre

Workplace recovery

Looking at NPS influence in combination with satisfaction performance we can isolate those with the most positive impact

So identify where the quickest wins to delight customers

OVERLAYING PERFORMANCE ON TOP OF KANO CAN OFFER A SHORT LIST OF RECOMMENDATIONS

E.G. 4 CAN HAVE THE BIGGEST POSITIVE IMPACT ON NPS AND LOYALTY AND COULD DRIVE MORE NPS PROMOTERS IF ADDED EFFORT IS APPLIED HERE

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Workplace recoveryThe service enables

you to reduce internal knowledge risks and

reduce costs






agreed budget


use of software



them




in other systems






Implementation consistent with the





Provider can manage functions of the

software within your working practices



manage its function




implementation


agreed timeline


Delighter Satisfier Basic Indifferent

Quality of the support provided within the data

centre

E.G. WHY ARE THESE THE 4 OF FOCUS? THESE CREATE THE EASIEST WAY TO CONVERT PASSIVES TO PROMOTERS

Attribute Measured…

Mean Performance Score

KANO Positive CS Coefficient

The service enables you to reduce internal knowledge risks and reduce costs

5.6 0.72A 24 hour helpdesk is available for minor software queries and problems*

7.1 0.70

Local availability of multiple network providers7 0.66

Customised reports are provided as part of the service when you need them

6 0.61

Attractive AttributeSatisfier Attribute

Base: 152

@Copyright 2012 ADP, Inc. Proprietary and Confidential Information 17

*As this is a potential service it wasn’t possible to ask current satisfaction so question was adaptedKano Q: A 24 hour helpdesk is available for minor payroll queries and problems’Satisfaction: Your ability to access a helpdesk for minor queries and problems when you need to

Areas of current low performance though

• NPS – Recommendation score

• Deeper Analysis – Identifying what’s causing people to think the way they do with suggestions for improvements

To work with your client in a different, more engaging fashion to help address issues and amplify the positives

SO WHY SHOULD YOU CARE ABOUT NPS?

Opportunity

• Agencies can use the insight to:

THE KIND OF OPPORTUNITIES FOR AGENCIES BEING INVOLVED WITH NPS CAN OFFER

• Become more of a trusted advisor

• Start talking to other parts of the business

• Aid strategic planning

• Develop messages and content that will address genuine business issues

• Improve go-to-market planning

• Create genuinely effective demand generation initiatives based on the real needs of client’s customers

• Run strategic development workshops based around market insight

• Initiate effective crisis management programmes if the sh*t really hits the fan

• Use it as part of your ROI proof measures

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• Ultimately clients have to “walk the walk” to bring about a real change but messaging can change perceptions and accelerate the rate of acceptance and move the NPS score in the right direction more quickly.

• Having identified the key issues that drive NPS you can develop and run internal messaging sessions and develop internal communications programmes to ensure focus on key drivers and the required changes in behaviour.

• These often focused on the “humanistic” elements of product or service delivery. For example if the client’s software is rubbish (it happens) it’s unlikely we can change that but we could work with them to accelerate and then message on other areas such as: customer service, not over promising, need for a 24/7 help desk etc.

YOU MIGHT NOT BE ABLE TO BUILD ROME IN ONE DAY, BUT YOU’LL STILL BE BETTER INFORMED


IN SUMMARY

So we’ll still have measures of • Importance

• Performance

• Gap analysis

• NPS

But also a quicker way of identifying • the quickest wins and

• greatest dangers

Redshift Research | Presentation Template

We look forward to having the opportunity to work with you

US Office UK Office

212-539-3214 +441732 356399300 Park Ave South Commotion House11th Floor Morley RoadNew York Tonbridge, KentNY 10010 TN9 1 RA

www.redshiftresearch.co.uk

Guy WasherManaging Director

Tel: +441732 356399Mob: +447872024910

[email protected]

get in contact with us to discuss ideas, audiences, methodology etc.

Jane HalesClient Services Director

Tel: +44 1732 356325Mob: +44 7976 555 108

[email protected]

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http://www.redshiftresearch.co.uk/

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