Score vs. System: How NPS Has Evolved to Power Culture Change
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This document discusses using the Net Promoter System to drive customer-centric culture change within organizations. It provides an overview of how American Express transformed their customer service culture by empowering frontline employees and implementing a closed-loop feedback system focused on Net Promoter Score. The Net Promoter System approach aims to create a flywheel effect where improved employee advocacy leads to improved customer advocacy and vice versa. It discusses key elements like frequent feedback, coaching, team problem-solving sessions, and data-driven process improvements. The document argues that effective leadership, clear goals, employee autonomy, and robust feedback mechanisms are needed to engage employees and maximize cultural impact.
Score vs. System: How NPS Has Evolved to Power Culture Change
- 1. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 1 Rob Markey Global Leader, Customer Strategy & Marketing Practice
- 2. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 2 HOUSEKEEPING - The recording of today’s presenta>on will be available on cxweek.com - Use the chat window to ask ques>ons throughout the presenta>on. We’ll reserve >me at the end for live Q&A with Rob - Join the conversa>on on TwiOer by twee>ng @Qualtrics using #cxweek
- 3. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent From score to system: NPS and Culture Change Employee advocacy and the Net Promoter® System(SM) Rob Markey May 2015 ®Net Promoter, Net Promoter score and NPS are registered trademarks of Bain & Company, Inc., Satmetrix Systems, Inc. and Fred Reichheld Net Promoter System and Promoter Flywheel are service marks of Bain & Company, Inc. @rgmarkey
- 4. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 4 + Empowering and driving change at the front line 20,000 employees in 24 countries Source: The Ultimate Question 2.0; Fortune; American Express website Jim Bush • Scripts for consistency, quality, and speed • Average handling time for unit cost targets • Call quality monitoring High employee turnover, stalled customer satisfaction
- 5. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 5 Bush adopted an approach we call “Leading by Letting Go” Source: “Leading by Letting Go,” Rob Markey, Harvard Business Review 2013 Call center scripts and average handling time limits eliminated Hiring criteria changed to emphasize hospitality and values versus technical skills “Telephone Service Center Reps” became “Customer Care Professionals” with increased pay and schedule flexibility Supervisors’ jobs reworked so they could spend double the time coaching and training Closed-loop Net Promoter System implemented Focused Customer Care Professionals on a single metric: Customer NPS
- 6. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 6 Clear, simple goal that resonates Freedom within a framework (guardrails) Coaching and support High-velocity closed-loop feedback Leading by Letting Go requires four crucial enablers Source: “Leading by Letting Go,” Rob Markey, Harvard Business Review 2013 Copyright 2015 Bain & Company, Inc.
- 7. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 7 Bush’s approach resulted in breakthrough performance • NPS doubled • American Express won the JD Power Award for service 5 years in a row • Employee attrition cut in half CUSTOMER SERVICE AND EMPLOYEE ENGAGEMENT IMPROVED RESULTING IN HIGHER PROFITABILITY • Costs came down 10% per year (as a percent of revenue) due to: - Fewer dial transfers - Lower average handling time - Fewer repeat calls – higher first contact resolution Source: “Leading by Letting Go,” Rob Markey, Harvard Business Review 2013
- 8. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 8 The Promoter Flywheel(SM): Employee and customer advocacy go hand-in-hand Work here! Buy from here! Employee advocacy Enthusiasm, energy, creativity Profitable, sustainable organic growth Buy from here! Excellence, trust, value Growth, opportunity Customer advocacy The Promoter Flywheel is a service mark of Bain & Company, Inc. Copyright 2015 Bain & Company, Inc.
- 9. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 9 Employee engagement is especially strained at the front line of the organization ENGAGEMENT IS WORSE THE LOWER YOU GO IN THE ORGANIZATION ENGAGEMENT IS POOR AMONG CUSTOMER-FACING EMPLOYEES Source: Netsurvey/Bain analysis, September 2012 (n=27,628); Forrester, Nov 2010, “Do your employees advocate for your company”? Employee NPS Boardroom Front line
- 10. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 10 Satisfaction is necessary but insufficient to generate energy, enthusiasm and creativity I have a safe work environment* I have what I need to do a good job** I am valued (and compensated) fairly Employee satisfaction Foundational basics: Eliminating employee pain points *Safe in both physical and emotional terms **Including resources, training, technology, process, personnel, and organizational effectiveness, among other things Extraordinary purpose and accomplishment Extraordinary teamwork and affiliation Employee advocacy Differentiators: Creating promoters Extraordinary autonomy, learning, growth Copyright 2015 Bain & Company, Inc.
- 11. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 11 Employee advocacy delivers a completely different experience to customers Call Center Example PROMOTER EMPLOYEE • Energetic: Never rushes customer off call, demonstrates empathy throughout • Enthusiastic: Ensures full resolution of customer issues • Creative: Proactively identifies new ways to please customers PASSIVE • Perfunctory; answers only what is asked • Provides additional info only when requested • Sounds detached, indifferent, following a script DISENGAGED DETRACTOR • Tries to end call as quickly as possible • Disagreeable, may blame customer for not understanding policies • General negative tone, not a team player
- 12. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 12 Net Promoter Score predicts individual and firm-level performance; common language 0-6 7-8 9-10 Extremely likely Extremely unlikely Would you recommend us to a friend? % Promoters Net Promoter Score (NPS) Minus NPS of the best relevant competitor % Detractors Relative NPS (rNPS) Minus
- 13. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 13 Net Promoter System – mechanisms that support a culture of customer-centricity Reliable, trusted currency/metric NPS/eNPS; common language; loyalty economics Feedback, learning and improvement Individual learning, behavior change, and connection with customers Inner Loop Outer Loop Root cause analysis, prioritization & implementation of structural improvements Huddle Team problem- solving, issue escalation, mutual commitment Sustained leadership commitment Strategic priority; inspirational behaviors that earn customer and employee advocacy; sponsorship spine Employee/team environment focused on loyalty Safe environment, effective organization, right tools and training, valued fairly Robust operational and analytic infrastructure Copyright 2015 Bain & Company, Inc.
- 14. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 14 Inspirational leadership: at the heart of creating a customer-centric culture Walt Bettinger CEO, Charles Schwab View the video at http://NetPromoterSystem.com/greatness
- 15. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 15 Set the ambition • Establish a clearly defined and compelling vision for the future • Set inspiring but achievable goals for competitive NPS leadership and continuous improvement Walk the walk • Invest in the skills of leaders from the executive level to the front line • Recognize and make the most of linchpin employees, those leaders that have a big influence on the customer or employee experience Inspirational Leadership: Three steps Cascade commitment throughout the organization • Make regular time to interact with customers and employees (closed loop) • Focus attention on customer issues • Coach employees, support your teams, make things better every day
- 16. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 16 Inner Loop: High velocity closed-loop feedback accelerates learning and customer focus Close the loop to listen and if applicable, fix customer issues Learn and grow with the benefit provide active coaching Engage the employees Get customer feedback • Follow up with any customer whose feedback indicates it is merited • All groups share in follow-up • Listen with empathy; address open issues as appropriate • Collect feedback only at moments of truth • Respect the customer’s time with very short survey • Document what was learned from customer follow-up • Commit to individual improvement • Coach and train individuals • Reinforce positive behaviors • Share each piece of feedback individually and immediately with employees • Emphasize individual events, not statistics Follow up with select customers Identify actions & coaching needs Execute on actions & coaching • Provides employees with a sense of autonomy as they respond to customers’ needs • Increases the quality and frequency of employee coaching and learning • Turns many customer detractors into promoters Follow up with select customers Identify actions and coaching needs Execute on actions and coaching Communicate customer feedback Gather and understand Individual learning & connection with customers; autonomy Inner Loop Copyright 2015 Bain & Company, Inc.
- 17. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 17 Huddle: Create a sense of teamwork and ownership; surface themes for escalation HOW DO THEY DO IT?WHAT IS A HUDDLE? Frequent and highly interactive two-way dialogue among supervisors and their teams - Discuss how well we are taking care of customers and review customer verbatims - Celebrate employees who contributed most to our success The “Daily Download” Escalation of key themes to the Outer Loop to improve processes, policies, products, and more – requests for the support needed to do a great job Team problem-solving sessions to discuss biggest challenges, barriers to success, and opportunities - Employees work together to identify root causes of challenges and suggest solutions - Employees make personal commitments to do things differently
- 18. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 18 Vanguard and the Outer Loop: Connecting with customers when it matters most View the video at http://NetPromoterSystem.com/videos
- 19. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 19 Outer Loop: a rigorous, transparent process instills confidence and engagement Develop solutions; implement Understand root causesAnalyze feedback & data Communicate Prioritize opportunities Determine root cause Identify and propose potential actions Prioritize actions; decide which to implement (PMO) Approve necessary resources (PMO) If analysis requires significant resourcing Other actions surfaced by business (e.g., non-client experience actions) Synthesize Front- line NPS Comp bench- marks Other em- ployee input Opera- tional data A B Item triage shared with employees to encourage full transparency Triage and assign item owner Just do Study further Defer/don’t doC Explain why to employees and close loop with clients Imple- ment by testing, learning, and modifying Encourage adoption and close loop with crew and clients If PMO decides against implementing Source: Bain case experience
- 20. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 20 Each primary element of the Net Promoter System helps engage and energize employees more deeply Source: Bain case experience Feedback & scores delivered daily to each agent Daily NPS feedback requested via SMS, answers registered Coaching sessions Structural issues identified and escalated NPS, competitive intel, complaints, operational data analyzed Five why’s, additional customer interviews, etc. Cross-functional teams form to develop, test and implement potential solutions Leaders communicate improvements directly to customers and to agent teams Individual learning & connection with customers; autonomy Inner Loop Outer Loop Prioritization & implementation of structural improvements (e.g., pricing, product, process, policy, etc.) Huddle Group problem- solving, issue escalation, mutual commitment Gather and understandFollow up with select customers Identify actions and coaching needs Execute on actions and coaching Communicate Analyze feedback and other data Identify issues and opportunities; prioritize Under- stand root cause and develop empathy Develop solutions and implement actions Communicate with employees & customerscustomer feedback Agents, supervisors, leaders make follow-up calls Agent level trends monitored; Individual dashboards generated Actions taken to repair customer relationship Frequency, severity, impact, readiness Copyright 2015 Bain & Company, Inc.
- 21. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 21 Net Promoter System and culture change: Typical risks along different parts of the journey Energetic, enthusiastic, and creative Time Resistant, pessimistic, disengaged Employee engagement Uninformed optimism Informed pessimism Hopeful realism Informed optimism Senior leaders Front line and middle management Jaded cynicism “Valley of despair” Build foundation and factbase Pilot & early implementation Rollout & full potential Maturity & re-invigoration Common risks: • Leadership team not aligned • Intent and case for change missing • Sponsorship spine broken • Customer-centric behaviors not reinforced • Unrealistic roll-out plan • Cross-functional processes ineffective • New priorities steal attention • Fatigue Hopeless defeat
- 22. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 22 The results are clear: companies with engaged employees deliver superior financial results … AND IMPROVE PROFITABILITY • More customer loyalty - Higher average revenue per customer - More customer referrals - Less customer churn Revenue Cost • Reduced attrition - Less hiring and training required - Less onboarding • More efficiency - Increased productivity - Lower absenteeism • And for some industries: - Less shrinkage - Higher quality - Fewer safety incidents COMPANIES WITH HIGHER ENGAGEMENT GROW FASTER… Source: Hay Group Insight “Engaging and Enabling Employees to Improve Performance Outcomes” (2009 Hay Group global normative database)
- 23. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 23 Net Promoter System – mechanisms that support a culture of customer-centricity Reliable, trusted currency/metric NPS/eNPS; common language; loyalty economics DRAFT Feedback, learning and improvement Individual learning, behavior change, and connection with customers Inner Loop Outer Loop Root cause analysis, prioritization & implementation of structural improvements Huddle Team problem- solving, issue escalation, mutual commitment Sustained leadership commitment Strategic priority; inspirational behaviors that earn customer and employee advocacy; sponsorship spine Employee/team environment focused on loyalty Safe environment, effective organization, right tools and training, valued fairly Robust operational and analytic infrastructure Copyright 2015 Bain & Company, Inc.
- 24. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 24 NetPromoterSystem.com
- 25. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. 25 Q & A