NPS Blog

At Disney, the show must go on

Net Promoter System podcastImagine that 20 million people depend on you to create a magical vacation experience for their family every year. Imagine leading 40,000 employees operating four theme parks and 20 resort hotels spread over an area larger than the city of San Francisco. On top of that, imagine running multiple shopping and entertainment districts, water parks, golf courses and the ESPN sports complex. That was Lee Cockerell’s job for over a decade. He was EVP of operations for Walt Disney World in Orlando. Just the logistical challenges of that role would overwhelm most leaders.

But the logistics aren’t really what interests me. And Lee, who retired a few years ago, mastered the logistics and complexity winningly. Much more fascinating is the question of how Lee and his team so consistently—day in and day out for years on end—created the kind of experiences that left customers so delighted they just couldn’t wait to visit again and tell their friends.

lee-cockerell-disney-120x113And that’s the key to Disney’s success: repeat business and word of mouth. About 70% of Disney’s visitors on any given day have been there before. The average customer comes back every three years for life. Walt Disney World’s economics depend on that repeat business. “That’s why we focus on trying to make the experience so good that they want to come back to us over and over,” says Lee.

Lee is my guest on the latest Net Promoter System podcast. He told me that Disney gathers data on customers’ experience at a level most companies can only dream about. It surveys 2 million guests a year on the Internet. It has teams armed with iPads roaming the park, interviewing guests while they’re still in the middle of the experience. It tracks how guests flow through its transportation system, hotels, restaurants, shops, shows and rides. And it uses this data to fuel its guest experience innovation pipeline for the resort.

Customers told Disney, for example, they wanted more certainty about what they would spend on food in the parks. So Disney introduced a meal plan for the resort, now used by more than 50% of guests. Customers didn’t know they wanted free transportation to and from the airport, but Disney’s research suggested that getting to and from the airport with kids and luggage in tow was a common source of anxiety. Once the company put an airport transportation system in place, complete with end-to-end baggage handling that takes guests’ bags from airport baggage claim to hotel room and back, the company’s hotel occupancy rate rose 10%.

Some of these innovations have direct payoffs. Even though the meal plan offers a great deal for guests, for instance, it increased food revenue because meal plan guests eat almost all their meals at Disney restaurants. Other innovations might seem like pure expense, such as the decision to install Wi-Fi capacity throughout the Disney properties. But it’s all driven by a desire to make the customer experience so seamless and unforgettable that it creates enthusiastic promoters of Walt Disney World.

Ultimately, of course, the key to such an experience lies with tens of thousands of employees—cast members, in Disney parlance. On that front, Disney shows a remarkable combination of what In Search of Excellence authors Tom Peters and Bob Waterman once called loose-tight principles, and what we at Bain call “leading by letting go.”

On the one hand, Disney expects every cast member to look the part, play the part and “act happy” every minute of every working day. “Cinderella can’t have a tattoo on her neck, and Mickey can’t smoke,” Lee points out. “We’re putting on a show, and that show’s got to be the same every single day.” On the other hand, Disney gives individual cast members a great deal of authority to solve any problem they encounter. A little girl gets wet in a rain shower? “The cast member has the authority to give her a [new] dress at no charge, or to replace her Mickey Mouse doll or to get her a new ice cream cone.”

Lee discusses all this and more on the podcast—including what it takes for other companies to emulate Disney’s world-class practices. You can listen to the discussion on iTunes or through the player below. Click here to browse more Net Promoter System podcasts.

Knowing when an interaction needs a human touch

linkedin-dont-send-technology-to-solve-human-problem-220x207Banks, retailers, and companies in just about every industry are expanding their online and mobile tools and finding new ways to serve customers through screens rather than at a counter. Without a doubt, a strong digital presence is critical to success in today’s business world, but it’s not enough. Some customers will always want to talk through complicated problems with another person, especially when the questions are sensitive and personal.

The smartest minds in business know which customer interactions benefit from a human touch, and the best companies know how to blend the best aspects of the digital and physical customer experiences.

In my latest post on LinkedIn, I look at the ways that some companies use technology in a way that undermines their service efforts.

Read the post here: Don’t Send Technology to Solve a Human Problem

Taking the temperature of temps: Building relationships that last (even if they’re not meant to) at Elwood Staffing

Net Promoter System podcastWhen you decide to use temporary employees to fill a role in your company, you generally do it because you don’t want the burden or expense of bringing someone onto the payroll permanently, right? Temp jobs are typically transitory, often unpleasant and rarely central to the mission of the company. That’s why managers are willing to delegate the hiring of temporary workers to an agency.

So why would a staffing firm work hard to gather feedback from the temporary employees it places with temporary employers?

Alan Balmer and Fernando Cadena (pictured right) of Elwood Staffing provided some insight on this puzzle when I spoke to them recently on the Net Promoter System podcast. When you hear them talk about it, the whole thing starts to make perfect sense.

Elwood is a large temporary employment agency based in Indiana. It places temporary employees in many different jobs in a variety of industries—automobile manufacturing, oil and gas, warehousing and so on. Its temporary employees might stay on the job for a month or for many months. Similar to a lot of business-to-business companies, Elwood focuses on building long-term partnerships with its clients so that when a company needs extra help, the first vendor it calls will be Elwood.

Fernando CadenaBut customer loyalty in this business is complex, because human beings are involved. If employees don’t like their placements—or if it’s just a bad fit between an individual and the job to which he or she is assigned—the work will suffer, and turnover will be high. That’s costly both to Elwood and its clients. So it’s in everyone’s interest that the temporary employees feel fairly treated, appropriately paid and listened to when they have concerns.

Fernando, who is director of associate engagement, says that addressing this issue was challenging. The company had to “find a way to collect feedback from our [temporary] employees and then … provide that feedback to the clients where our employees were working and also to our internal teams so that we could make some changes to make it better for our folks and improve their experience.”

Enter Net Promoter. Fernando read The Ultimate Question 2.0 and liked the simplicity of the feedback methodology. Before long he was pulling Elwood associates off the line at clients’ workplaces and asking them how likely they would be to recommend this company to friends or colleagues. He also asked an important follow-up: If the company could make improvements, what would they be?

You can hear on the podcast some of the interesting issues and opportunities he uncovered. But more important than the specifics they raised might be the process: Temporary employees were grateful simply to have a voice. And the systematic feedback data enabled Elwood to have productive conversations with its clients about the workplace issues that temporary employees raised. Clients who acted on the concerns found that turnover decreased and the quality of work improved. Those that failed to act, not surprisingly, found the opposite. As a result, Elwood not only improved the quality of experience for its temps but forged closer relationships with its corporate clients.

This use of the Net Promoter System differentiates Elwood from its competitors, says Alan, who is vice president of workforce solutions at the firm. “From our perspective, it’s very important to retain [clients] and demonstrate to our existing client base that we are committed to you,” he says, and investing in Net Promoter “is a small cost in order to retain the clients that we have and keep them feeling happy.”

So there it is: A metric originally developed to help earn enduring loyalty is being used in a situation that everybody knows is temporary. Yet it’s completely logical. And it’s good for everyone—Elwood, its clients and its associates alike.

You can listen to my discussion with Alan and Fernando on iTunes or through the player below. Click here to browse more Net Promoter System podcasts.

Warby Parker: Seeing the eyeglass business through a new set of lenses

Dave Gilboa - Warby ParkerRoughly half the adult population of the US wears eyeglasses. Until recently, I never did. But now that I’m getting a little older, I need corrective lenses to read anything closer than about a football field away from my face.

I’ve noticed several things about eyeglasses. First, the shape and design of a pair of glasses really impacts how you look. For me, there’s a big difference in how I look wearing round, oval or rectangular lenses. And the frames matter. They can be nearly invisible or quite prominent, metal or tortoiseshell, light or dark. Second, they cost a lot! Sure, you can pick up some cheap reading glasses at the drugstore for well under $20. But if you need prescription lenses and want them to look nice, get ready to spend a few hundred dollars. Finally, the custom ones can take a really long time to arrive from the eye doctor. Mine seem to take around a month every time I need a new pair.

Dave Gilboa and his cofounders at Warby Parker are trying to change all that. Five years ago, they started selling glasses over the Internet at $95 a pair, undercutting most opticians. Their goal is simple: They want to make glasses so affordable and easy to buy that you’ll want to own several pairs, even coordinating them with your mood, your clothing or the occasion. After all, you wear them on your face, and they’re one of the first things people notice about you.

Net Promoter System podcastIt wasn’t an easy proposition. “People tend to be very deliberate and picky when they’re selecting glasses,” says Dave, who recently shared his experience on the Net Promoter System podcast. And, of course, every pair of prescription glasses must be custom-made after someone places an order.

Dave also realized that the fledgling company had little that was proprietary—no intellectual property, no new cutting-edge technology. “It’s not rocket science to figure out how to source affordable products globally these days,” he says. “So we realized other people could copy that.”

Therefore, he and his partners concluded, fanatical attention to customer experience would be essential to Warby Parker’s success. They would have to build a brand and a reputation that created positive word of mouth. Before launch, the founders “camped out for hours in optical shops just to observe how people are shopping for glasses,” Dave says. They saw how important it was for consumers to try on different frames, get advice and make sure everything was just right before they ordered.

In response, the company initiated a unique “home try-on” service that allows customers to choose up to five frames on Warby Parker’s website to try on at home. The company pays all the shipping costs, so it’s not the cheapest service, but the conversion rate is high enough that the economics work out. And it’s a great marketing tool—the buyer’s friends and family members often learn about Warby Parker.

Warby Parker’s approach is working. Its online sales have boomed. It has opened 12 physical stores in cities around the US, and they’re doing well. Recent speculation among investors gives the company a potential valuation of more than $1 billion. Fashion has also played a role in the company’s success, of course—Warby Parker’s elegant designs are wildly popular among young, hip shoppers.

The company has relied on Net Promoter feedback to maintain and continue to improve its outstanding customer experience amid this growth. Dave says the Net Promoter Score is “the leading indicator for the health of our brand and the best indicator of how good a job we’re doing serving our customers’ needs.” When the score recently dropped several points, the company looked closely at detractors’ comments. Increased shipping times—a result of rapid growth—were a particular sore point. So the team quickly developed an action plan to get orders out faster.

Dave talks about much more on the podcast, like the thinking behind Warby Parker’s decision to open physical stores and the critical importance of repeat and multiple purchases. You can listen to the discussion on iTunes or through the player below. Click here to browse more Net Promoter System podcasts.

Net Promoter, pay and predictable (but unintended) consequences: How to avoid the most common traps

Net Promoter System podcastHere’s how it usually goes. A CEO or division president decides that it’s time to get serious about customer loyalty and decides to use the Net Promoter System as a lever for change. Executives tell themselves that “anything that is really a priority must be part of our goals and incentives,” and they take the obvious first step of setting NPS goals and linking them to incentive compensation—bonuses. Often the link extends throughout the organization, including everyone from CEO down to the frontline employees who interact with customers every day.

What happens next? Well, because it is actually hard to earn customer loyalty, and because NPS is new to them and not yet well understood, employees and their managers begin by criticizing the new metric. When that doesn’t work, they very predictably move on to analyzing in great detail subtle changes in scores, explaining away every low score as either an outlier or a result of some factor beyond the control of their own functional group. Pricing, for example, is a perennial favorite of sales teams, while policies and product features seem to surface regularly in call centers. Inadequate IT also seems to be an easy target.

Eventually, however, almost every company that leaps to set goals and incentives based on NPS in the early days finds that some significant number of employees begin coaching customers about how to respond to the company’s requests for feedback. They start begging for top scores, as so many auto dealers do. In the worst cases, the idea comes from their bosses, who themselves feel frustration with the team’s inability to quickly move the scores. Often, they sanction crafty ways to game the system, such as figuring out how to exclude dissatisfied customers from the survey database.

Sure enough, scores begin to rise—only senior executives don’t really understand why. And the improvement, of course, is wholly illusory. Even more dangerous are the side effects. Customers feel used. Employees feel the company lacks integrity.
Fred ReichheldSo that’s the trap. To learn how to avoid it—or how to escape it if it has already ensnared your company—you’ll want to tune into my latest podcast. Net Promoter creator Fred Reichheld and I discuss the specific conditions that must be met before you link scores to compensation. We also talk about how to fix things if you have done so prematurely. (Hint: The first step is to break the link—but you have to do so carefully, so that people don’t misinterpret the move.)

I’ll leave the details to the podcast. But there’s a fundamental principle here that Fred emphasizes, and that underlies our practical recommendations. People don’t work for money alone. Sure, they have to be paid fairly. But the real satisfactions of a job come from accomplishing something, from serving someone, from feeling like a valued member of a winning team.

“Part of the solution here has to be refocusing the energy on intrinsic motivation,” Fred said to me. “The truth of the matter is that our bonus is not what’s going to make our lives worth living.”

I think that’s why so many successful Net Promoter companies go out of their way to recognize people’s contributions in nonmonetary ways. They don’t just give out the usual pats on the back—they create stories about people and teams who did remarkable things for customers, and they spread those stories throughout the organization. (For a great example, watch this video about TD Bank.) The most powerful form of recognition, moreover, comes from a person’s peers. If an employee regularly wins recognition from peers for living a company’s values, says Fred, that should be part of the permanent record and should figure in performance reviews.

Everyone knows that incentive compensation can be a powerful motivator. But unless companies are careful, they can wind up incentivizing the wrong things and sending the wrong messages about what’s important. That’s why both Fred and I always urge companies to use great care in linking pay to NPS performance.

You can listen to my discussion with Fred on iTunes or through the player below. Click here to browse more Net Promoter System podcasts.

Would you recommend your town to a friend? How a ski town uses Net Promoter to grow the tourist trade

Net Promoter System podcastSteamboat Springs, Colorado—the entire town, not just the ski resort—is using the Net Promoter Score to help make itself more customer-friendly.

Yeah. You read that right. A town. We at Bain have a lot of experience helping big companies adopt the Net Promoter System. But a town? That was a new one. So I asked Jim Clark (pictured below right), CEO of the Steamboat Springs Chamber Resort Association, to tell me all about it on a Net Promoter System podcast. Jim was joined by Rob Perlman (pictured below left), head of sales and marketing for Steamboat Ski & Resort Corporation—a good thing, as it turned out, since the ski company has been using Net Promoter for years and was one of the inspirations for the town’s pathbreaking move.

Jim Clark of Steamboat Springs Resort Chamber Association

The ski company decided to employ Net Promoter for the same reason a lot of companies do: to set the resort apart from competitors. “I’m constantly saying … we all have green trees, blue skies, white snow,” says Rob. “What differentiates our resort from the others? It’s the service we provide, the experiences [our guests] have, the lasting impressions we provide. … That’s what’s going to make people select Steamboat over our competitors, who all have the same stuff.” Feedback from Net Promoter has helped the company create a customer-centric culture, maintaining high levels of service and friendliness among its extensive staff.

But there was a problem. Visitors “don’t differentiate between where the resort stops and the town begins,” as Rob puts it. A customer’s overall experience at Steamboat depends as much on airport personnel, bus drivers, restaurant waitstaff and other service providers as on ski-company employees. Moreover, Steamboat as a community attracts summer visitors as well as winter ones, and the ski company is far less active in the summertime.

So that’s when Jim Clark and his colleagues got the idea. What if the whole town—or at least the Chamber Resort Association’s 832 members—adopted Net Promoter?

Rob Perlman of Steamboat Ski & Resort Corporation

That’s the effort that is under way now. The association began training local businesses. It also began gathering systematic feedback from visitors, primarily in the summer. Jim would be the first to acknowledge that the system is still in development—for example, many of the responses are anonymous, which makes it impossible for anyone to close the loop when a visitor offers a complaint or a suggestion. But the feedback has already underscored the importance of certain key events in the overall customer experience, such as how a customer is treated at the airport and what happens if there’s a mistake with a reservation.

Most important so far is a sense among local businesses that the culture is changing. According to Jim and Rob, the community has begun to feel that Steamboat Springs is improving on the Western friendliness and great service it has been known for. “There’s a real sense of pride” about Net Promoter, says Jim. “It’s been very much embraced.”

To hear more about how a town can use Net Promoter, listen to my discussion with Jim and Rob on iTunes or through the player below. Click here to browse more Net Promoter System podcasts.

You can also find an article in the New York Times about Steamboat’s great experiment.

Harry’s: Taking on the razor blade giants by building personal relationships with customers

Andy Katz-Mayfield of Harry'sWhen my former colleagues Andy Katz-Mayfield and Jeff Raider told me they planned to start a business selling razors and blades, I thought they had lost their marbles. While there are few certainties in business, one of them is that competing against entrenched market leaders rarely works out for the new entrant. This is especially true for products sold in grocery stores and drugstores. And in the razor and blades market, two companies are dominant: together Gillette and Schick account for about 80% of the global market.

So how could a brand-new competitor ever hope to achieve a toehold in this business? It wouldn’t be just the usual David vs. Goliath affair. It would be tiny little David going up against mighty Goliath and his slightly smaller brother.

Andy and Jeff started a company called Harry’s, which sells razors, blades and other shaving supplies online. Andy is my guest on the latest Net Promoter System podcast, and he explains how Harry’s is taking on this monumental challenge.

The idea for Harry’s came after an experience with which many men are familiar: Andy had gone to the drugstore to buy blades. There they were, locked away in a display case. When he finally found someone to open the case, he was—once again—appalled by how much the blades cost, roughly $4 apiece. While less expensive, the alternative of disposable razors brought unacceptable quality trade-offs.

Net Promoter System podcastMaybe, Andy thought, there was room for a high-quality, lower-cost alternative—particularly if the new company could create a deep bond between the brand and its customers, turning them into promoters.

That launched the start-up saga he recounts on the podcast. Turns out it isn’t easy to make razor blades: the giants mostly do it in-house, using a lot of proprietary technology. But Andy and his colleagues tracked down a factory in Germany that could produce blades with the necessary quality. They liked the plant and its people so much that they bought the whole thing.

But then came the task of creating a bond of loyalty between company and consumer. The website had to be attractive and easy to navigate. The packaging had to make the customer feel “almost as if you were opening a present.” Subscriptions would be available but not required; although investors like the subscription-based model, Andy doesn’t. “It’s our philosophy of just being very consumer-centric,” he says. “Why should we force you to have a subscription?”

The team also decided that first-time buyers would get personal emails, sent by real people, asking them about their experience. That approach has generated great feedback, as have the company’s regular Net Promoter requests. One customer—an engineer—decided that the handle on the company’s razor wasn’t quite right; then he actually sent the company working drawings for fixing the problem, which it did.

“The key,” says Andy, “is getting people to engage with the product, engage with the brand, and come back and buy more.” In the podcast he talks about how Harry’s does that day after day—the metrics it watches, how it hires and deploys its people, how it keeps everyone focused on the customer experience so that their little David really can take on those two giants.

You can listen to my discussion with Andy on iTunes or through the player below. Click here to browse more Net Promoter System podcasts.

The inner loop of the Net Promoter System: Connecting employees and customers every day

Fred ReichheldOne of the great ironies of modern business practices stems from the way traditional “voice of the customer” programs alienate employees from their customers. These programs generally deliver customer feedback to employees in the form of statistics and reports several weeks, and sometimes several months, after the customer interactions that spurred the feedback. If you have ever been subjected to this process, you know how frustrating it can feel. The scores come to you devoid of context. They are disconnected from any particular customer. Comments, when they are included, come in a list, not attributed to any individual customer you can remember. How are you supposed to use this as a way to get better at your job?

Yet if you’ve read The Ultimate Question 2.0, you know that the Net Promoter System was inspired by the way Enterprise Rent-A-Car used a simplified form of feedback to connect its car rental agents and managers to the customers they serve.

When we first introduced the concept back in 2003, we focused on the scores. At the time, there was no tool in business that offered comparable simplicity and speed when it came to collecting customer feedback. More important, we had never seen anything as powerful for motivating frontline teams to learn and act on customer feedback.

Net Promoter System podcastSince then, we’ve come to appreciate that some of the other things Enterprise was doing were just as responsible as their system’s radical simplicity for making those scores more effective. One of the tactics that most impressed us was a process we now call the inner loop. It’s when companies ask a customer for feedback about their experience, share the input directly with the employees involved and then follow up with those customers to learn more, address any unresolved issues and connect with them in a more personal and human way.

With the benefit of hindsight, this might now seem obvious. Of course we should share feedback from individual customers directly and immediately with employees. Obviously, we should follow up with customers whose feedback merits further exploration or action. Yet today, too many companies still let their employees toil in the dark, giving them feedback so infrequently that it’s impossible to learn and make rapid changes that lead to happy customers and an empowered staff. Employees in these situations often feel helpless and disengaged, and the customers feel they’re not heard. In contrast, employees at a company with a strong inner loop feel a sense of mastery and ownership. They know that they have the power to delight customers and develop their skills. They feel connected.

The key to an effective inner loop is granularity and timeliness. The feedback must be detailed enough that employees can learn from what they did in a particular interaction that they remember. They have to be able to link the outcome to the actions and behaviors that created it. Aggregate data just won’t do. Companies must also relay the feedback while the experience is fresh in the minds of the employee and customer.

I recently talked to my colleague Fred Reichheld, creator of the Net Promoter Score, about the origins of the inner loop and its role in inspiring employees to do a better job for their customers. We also discussed how the inner loop can go beyond call centers and sales groups to support back-office teams and other support organizations—people who have less contact with customers but still impact those relationships.

A new installment of our Loyalty Insights series will take an even closer look at what makes an inner loop effective.

You can listen to my discussion with Fred on iTunes or through the player below. Click here to browse more Net Promoter System podcasts.

When employees say goodbye, don’t let a bruised ego cloud your judgment

four-reasons-not-to-be-a-jerk-220x207It’s often hard for executives to see young, talented people leave their company, but people often have to change jobs, employers or careers to broaden their skills and explore new challenges.

While these shifts can be rewarding to people, more companies are realizing that they also have a lot to gain when employees come and go. In fact, some smart companies, including Procter & Gamble and IBM, learned long ago that fostering positive relationships with outgoing employees—treating them as esteemed alumni rather than traitors—can help the bottom line. In my latest post on LinkedIn Pulse, I explain why.

Read the post: Four Reasons Not to Be a Jerk When Employees Say Goodbye 

Sophisticated simplicity: How Delighted makes Net Promoter feedback easy and appealing to customers

Net Promoter System podcastI’m often surprised to find that some executives will accept single-digit response rates in their customer-feedback programs.

One recent conversation centered on a company’s 4% response rate. My concern about the low response rate met resistance. The executives responded that their market research partners had assured them this was typical. Anyway, they said, the statisticians had told them their sample was adequate.

But this sort of logic fails to account for the human part of the equation. With a 4% response rate, 96 out of every 100 customers are ignoring the company’s call for help. Ninety-six percent of the customers won’t bother to tell the company what they liked, what they hated or how they thought it could do better.

Of course, single-digit response rates probably shouldn’t surprise us. The way many companies ask for feedback fails the simple test of The Golden Rule. These companies ask for “just a few minutes of your time,” but then present customers with a seemingly endless list of multiple-choice questions. The survey questions and answer options often feel irrelevant or relate to features or experiences the customer never had. The survey might even ask for customer information the company already has.

At Bain & Company, we’ve long advocated a much simpler, customer-friendly approach to gathering customer feedback. We focus on two simple questions: How likely would you be to recommend the company or its products? Why?—letting you answer in your own words.

Now a company called Delighted has taken this customer-friendly approach and embodied it in a beautiful, simple package. Under the hood, there’s a ton of sophistication enabling that beautiful simplicity and creating the support for a more comprehensive Net Promoter System, complete with follow-up call support and rigorous analytics.

caleb-elston-120x113I had a chance to talk with CEO and cofounder Caleb Elston. You can listen in on the conversation in my latest Net Promoter System podcast. Caleb is quite thoughtful about how to solicit feedback in an engaging and relationship-enhancing way.

Companies using Delighted’s software send a short email to customers, often right after a transaction. The likelihood-to-recommend question is included right in the email, complete with a zero-to-10 response scale. It’s mobile-friendly, so all you have to do is touch or click on a number. The software then takes you to a Web page where you can give the reason for your rating or offer any other kind of feedback you want. The whole thing can take less than a minute. Really.

Delighted’s software platform makes it easy for a company to get started on the system, and then to scale up its use over time. So a small business can get up and running on the light version for a very low fee and with just a list of email addresses to get going. For a larger company, the software can plug into an existing CRM system so that the feedback is linked to the customer’s buying history or other variables.

The retailer Bonobos, an early user of Delighted, used the software’s fast-feedback capabilities to test some modifications to its shipping procedures—and quickly learned that the change was making customers unhappy.

And what about that 4%? Delighted’s results with Bonobos and a handful of other early customers show response rates reaching 40%. It’s an exciting development. A platform so simple it takes just minutes to get up and running, but sophisticated enough to integrate with a larger company’s internal technology and support a Net Promoter System.

You can listen to my discussion with Caleb on iTunes or through the player below. Click here to browse more Net Promoter System podcasts.

Net Promoter at the heart of a cultural transformation: How Safelite turns hassles into smiles

Net Promoter System podcastWhen I was in college, I had the unfortunate experience of living in a high-crime city. I got a lot of experience getting my broken car windows replaced. It was not a fun process. You’d call your insurance company, try to persuade them that the breakage wasn’t your fault (again), get an estimate or two, call again for approval and finally take your car to some out-of-the-way shop for the repair.

Today the hassle is almost entirely gone from auto glass repair: Auto glass companies come to your car wherever it is and replace your broken glass on the spot. When a rock on the highway cracked my windshield recently, I was surprised at how easy the process was.

It turns out that making the process easy for car owners can prove challenging for the companies doing the repair and replacement. Insurance companies pay for most repairs, and they drive hard bargains on pricing. In fact, these days the auto glass companies handle many of the insurance companies’ tasks. For example, when you call your insurer about a glass-only claim, chances are quite good you’ll speak to someone at an auto glass company acting on behalf of your insurance provider. And getting the field technicians out to your car—no matter what the weather—and making sure they have the right parts and the right training and that they do a great job can pose significant operational issues.

Safelite AutoGlass is a leader in this difficult business—in fact, it’s the only national glass repair and replacement company in the US. It deals with hundreds of different insurers. Its 8,000 field technicians work largely on their own, far from any supervisor. And the field techs must be able to repair or replace the glass on countless car makes and models—often a difficult and demanding technical job. So Safelite’s story is pretty interesting.

TomFeeney-120x113A few years ago, Safelite set itself a goal of becoming “people powered” and “customer driven.” It’s in the midst of an ambitious transformation aimed at inspiring and engaging employees and giving customers an experience far better than what they expect. “The saying that we’ve been playing with around here is that we turn a hassle into a smile,” says CEO Tom Feeney, one of three Safelite leaders who are the guests on my latest Net Promoter System podcast.

Safelite uses an impressive variety of tools and techniques to achieve its aims. Customers who call for service talk to a person, not a recording. The company sends the customer a short bio of the technician who’s just been scheduled to do the work. Training for the technicians focuses on the “soft” skills for relating to customers, not just the fine points of auto glass installation. In fact, technicians are hired as much for a service-oriented attitude as for technical abilities.

“We introduced a total new performance management system that weighs those competencies,” says Natalie Crede, senior vice president of human resources, and another guest on the podcast. “Fifty percent of your review [is] on those skills and behaviors.”

To reinforce its values, Safelite makes a point of circulating stories that illustrate the sorts of behaviors that make customers smile. One recent story involved a field tech confronted with a hearing-impaired customer. He asked a friend conversant with sign language to help him communicate in a way that would make the customer more comfortable. Today, Safelite provides its technicians with videos in both sign language and Spanish to help them assist customers who rely on those languages.

To further reinforce the culture, Safelite has developed an exemplary application of the Net Promoter System: “It’s front and center for our technicians every single day,” says Renee Cacchillo, vice president for customer and brand strategy and my third guest on the podcast. Net Promoter feedback from customers helped Safelite understand some of the subtleties about why Saturday morning service was so often problematic for customers. Typically, the company learned, customers try to pack a lot into their Saturdays. To help support its customers, the company bolstered its support systems and extended its Saturday hours.

You can listen to my discussion with Tom, Natalie and Renee on iTunes or through the player below. Click here to browse more Net Promoter System podcasts.

Why copying Google won’t improve your employee engagement

Michael MankinsMost companies are looking squarely in the wrong direction for ways to improve employee engagement, says my colleague Michael Mankins. “They’re focused on free food, access to child care,” he says (and let’s not forget game rooms, concierge services and the like), all of which are “basically a different form of compensation,” Michael says. Employees do expect fair pay and good benefits. But those basics alone don’t set one company apart from others, and they don’t do much to build engagement.

According to Gallup, something like 70% of US employees say they are not engaged with their job. In spite of all the money companies spend trying to build engagement, many major measures of employee engagement have declined over the last decade or two.

So what should these companies do? Michael—head of Bain’s Organization practice in the Americas and my latest guest on the Net Promoter System podcast—has some answers to this question.

What’s most important for engagement, Michael says, is the feeling that what you do matters.

Net Promoter System podcastThat’s probably a fundamental human motivation that all of us feel. But younger employees in particular—the so-called Millennials—want to believe that the company they work for has a real mission, that it’s having an impact on the world and that they are contributing to it. As Michael puts it, they want the feeling of “I’m doing extraordinary things for a company that’s doing extraordinary things. That’s pride. That creates a bond” between employer and employee, he says.

Everything else flows from this basic principle. Companies need to emphasize team performance, not individual performance, because it’s the team that has a real impact on the company’s mission. They need to ensure that everyone is in the right job, so that each person can capitalize on his or her strengths and contribute to the mission. They need to create inspirational leaders—people who bring out the best in their coworkers and motivate them to realize their full potential as they pursue their company’s goals.

“Today, the best companies are actually communicating much more about impact,” Michael adds. He cites a speech by Michael Dell to an audience that included a lot of Dell employees. Rather than concentrating on the company’s financial performance, Michael Dell “focused on the billions of people [for whom] they were providing access to healthcare, the billions of people who wouldn’t be educated if they hadn’t had the equipment Dell was providing,” and so on. “It was all about the impact the organization is having on the broader world and the role that the team at Dell played in that impact.”

You can listen to my discussion with Michael on iTunes or through the player below. Click here to browse more Net Promoter System podcasts.

Asking for feedback, but actually getting honest answers

Net Promoter System podcastA few years ago, I bought a new luxury car. While I had struggled with the decision about which make and model to buy, once I locked in, I had a really good experience. A dealer not too far from my home had my model in stock, and he did an outstanding job of making me feel like I was his only customer. He made me feel like I got a fair deal and seemed to do his best to make the process painless.

Of course, the best time when you’re buying a new car is that moment you finally take the keys in hand, stride out to your vehicle and fire up the brand new engine. I felt that tinge of excitement—maybe even bordering on elation—as I sped through the paperwork on the appointed day. Right outside the floor-to-ceiling glass window sat my new car, gleaming in the afternoon sun. My keys were sprawled on the table in front of me, calling to me. The anticipation grew.

And when that moment came—when I’d signed the last bit of paper and the car was mine—that’s when the sky suddenly darkened.

“Mr. Markey,” said the salesman as he gripped one of those leather folio things that holds paperwork, “I just need one more thing.” He edged around the table so he could be right next to me, popped open the folio, pulled out a pen and showed me what was inside. “In a few days, you are going to get a survey. It will look just like this.” He circled two questions. “This question, and this question here. These will determine my future. If just one customer gives me anything but a 10 on either of these questions, I could lose my spot as a top salesman.”

This illustrates just one of the complexities of allowing frontline employees to participate in collecting customer feedback. Even employees who aren’t at risk of losing their top spot on the sales league tables find it hard to resist influencing customers. They might circle the survey link at the bottom of a register receipt, and write their names and add smiley faces to encourage a friendly customer to give feedback. Or they might even stand over a customer who is responding to a survey on a tablet at the point of sale. In any of these cases, the customer’s input is bound to be biased and could easily mask deeper problems that management might never see.

And yet, despite all the potential pitfalls, some companies manage to collect high-quality feedback on-site. Some even find that they can get high-quality feedback when the employees are collecting it directly. My latest guests on the Net Promoter System podcast provide one example of a situation where this seems to be working

gautam-mahtani-120x113I recently talked to Gautam Mahtani (pictured right), co-founder of Customer Feedback Systems, whose technology enables clients to collect Net Promoter feedback at the point of service. Phil Fagan and Sarah Cooper of HealthCare Partners of Nevada use Gautam’s technology to gather input from patients of the company’s physicians. Patients typically share their thoughts through tablet computers immediately after a provider interaction.

Gautam’s company and HealthCare Partners provide a fascinating case study in point-of-service feedback requests. Many companies would envy HealthCare Partners’ 80% response rate. And the rapid input has allowed the company to improve its processes quickly, whether it’s scheduling more staff during busier hours to reduce waiting times or adding a 24-hour hotline that allows patients to check on prescriptions.

phil-fegan-120x130HealthCare Partners doesn’t use the feedback to punish providers or determine compensation. The company doesn’t post the scores to create competition among its clinics. Sarah and Phil say this philosophy has been key to making the program work.

“This is patient feedback to improve the patient experience, period,” says Phil (pictured left).

You can listen to my discussion with Gautam, Phil and Sarah on iTunes or through the player below. Click here to browse more Net Promoter System podcasts.

The ideal Customer Advocacy Officer: Balancing experience, credibility, resourcefulness and perseverance

Few decisions are as vital to a Net Promoter effort as choosing the person who runs it day to day. Bring in an arrogant, detached executive with limited ability to relate to front-line employees or one with flimsy experience but major entitlement, and the effort will be doomed. It’s not uncommon for a company to seek an outside expert—someone who has led a similar, successful transformation elsewhere. Hiring for experience alone, however, often results in missteps, false starts and distrust.

But when you appoint someone who has earned his or her colleagues’ trust, knows what it’s like in the service trenches and thinks like a customer, you can’t lose. This leader, whom we call the customer advocacy officer (CAO), serves not only as the customer’s voice inside the organization, but also as a guide for nervous, skeptical employees.

This infographic nicely sums up the key traits that can make a CAO successful.

loyalty-insights-infographic-1000-1-30-15

It also helps when this person has the humility and perseverance of Omar Hashem, chief customer officer of Saudi Arabia’s National Commercial Bank (NCB). Omar recently discussed with me the challenges he faces running the Net Promoter System of the largest bank in the Middle East. He brings vast experience in financial services and a keen understanding of Saudi Arabia’s population, half of which is under 25 and comfortable with all the technology that Millennials routinely use.

omar-hashem-120x113The bank’s early Net Promoter journey was rough. Colleagues questioned almost every aspect of the system. Omar knew he needed to listen with empathy—and push forward with some force. In fact, when faced with naysayers and obstacles, he often sought inspiration from the Pixar film Finding Nemo, one of his daughter’s favorite movies.

“I kept remembering a fish. Her name was Dory. And there was a scene where they went down deep in the dark. And Nemo’s so afraid,” Omar says. “And Dory just kept singing, and saying, ‘just keep swimming, just keep swimming.’ And that ran through my head through the whole setup period. I just had to keep telling myself, ‘There is light at the end of the tunnel, and you just need to keep swimming.’”

You can hear more about Omar’s story in our most recent Loyalty Insights brief, Who should run your Net Promoter System? We’ve also been the exploring the Customer Advocacy Office and the role it plays in recent Loyalty Insights briefs. You can find the last two here: The Essential Role of a Customer Advocacy Office and The Customer Advocacy Office: FAQs.

You can also listen to my discussion with Omar on iTunes or through the player below. Click here to browse more Net Promoter System podcasts.

To improve it, start by measuring it

best-advice-fred-reichheld-linkedin-220x207One of the best pieces of advice I ever received came from my uncle, a world-class physicist who later became a business executive. My uncle and his wife graciously took me in for seven years while I was a student and just starting out in my career. He liked to remind me that until you can measure something, it’s hard to get better at that thing. Learning (and most of science) depends on reliable measurement.

My latest post on LinkedIn looks at the importance of measuring relationships and interactions.

Read the post here: It’s All Lip Service Until You Measure It