Focus on B2B Acount Management with Net Promoter Score

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This supports the webinar from 15 Jan 2013 – recording is here: https://directness.webex.com/directness/ldr.php?AT=pb&SP=MC&rID=19451777&rKey=E94304438BA3C8CF
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Put good discipline into the sales process, using techniques from Net Promoter® Score. By joining this short webinar you can learn new techniques and copy-paste ideas from forward-thinking companies that are making regular customer contact a discipline, pulling the customer voice into the company, and getting improved retention sales as a result.
Presentation highlights: How hi-tech b2b sales organisations are driving B2B account management with Net Promoter Score, resulting in improved retention, upsell, and company-client communication with reference to two real-life (anonymous) success stories. Why your Net Promoter project will improve sales discipline – and why salespeople like it!

Help you on key areas including Planning, Organising, Communication, Reporting, and Actions. Best practices including incentivising schemes and embedding into the heart of your organisation.

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Focus on B2B Acount Management with Net Promoter Score

  1. 1. Focus on B2B Account Managementwith Net Promoter® Score Adam Dorrell CEO CustomerGauge / Directness Adam.dorrell@directness.net 15 Jan 2013 *Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.
  2. 2. Introduction•  Who this is relevant to: –  Sales/marketing/customer experience executives in companies selling into medium/ large organisations, with several contacts in the major accounts –  Typically with enterprise-size deals of more than 100K•  What we will cover: –  Using Net Promoter® to set sales discipline and improve revenue –  Useful tips from real clients•  Who we are and our credibility: –  Adam Dorrell •  Former head of Marketing for b2b companies including Dell, FairMarket, FileNet, Interwoven (now ATG) •  Using Net Promoter since 2003 •  CEO of CustomerGauge –  Vivek Jaiswal *Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld. Thomas S Watson, IBM 1921
  3. 3. ADVERTISEMENT A word about CustomerGauge…•  CustomerGauge is the leading real-time Net Promoter® measurement platform. –  Complete workflow and service recovery system –  B2b, b2c and b2e solutions –  Automated reporting and digital signage –  Automated, with integrations to CRM systems including SalesForce.com –  32 languages (reporting system in EN, DE, ES, FR, NL, CN)•  Launched 2007•  HQ Amsterdam, global coverage with partners
  4. 4. The Economics of Poor b2b Customer Experience: It’s the customers that don’t complain you need to worry about…Case Study numbers from Gartner (2004).Assume 2000 customersRevenue = €6000m per year In this assumption improving theAverage Revenue customer experience by 1% is worth per Customer = €3m per year €60m At risk — 34% 3 customers Issue not resolved €9m 2 customers Complain Defect — 28% €7m 2% 9 Poor experience customers 22% 440 Resolved — 38% customers Don’t At risk — 55% 200 customers Positive complain 431 Decline in wallet $711m experience 98% customers share 78% 194 customers Defect — 45% €582m
  5. 5. What is “Account Management with Net Promoter?” “These days, everyone IS RESPONSIBLE FOR the Customer Experience…” Brad Tribble, Electrolux•  A discipline of regular customer contact with a feedback loop to drive sales engagement•  Data driven approach that –  Measures and ensures that you have good client 1965 UNIVAC engagement –  Measures customer loyalty by client and role in company –  Can be a leading indicator of sales –  Drives good practices with clients –  Involves the entire organisation•  Fast and simple to start Note! The score for Customer satisfaction is not the most important metric here
  6. 6. Net Promoter in anutshell•  No more 40 page surveys to a few contacts!•  Ask everyone a very short survey, two questions –  “How likely are you to recommend us to a friend or colleague?”•  Report on Promoters or detractors.•  One score•  Read customer commentsDownload our cartoon guide:http://customergauge.com/tag/nps-comic/
  7. 7. Why is NPS interestingto salespeople?•  Get customer issues fixed before an account review! –  Helps manage account better, set account plan –  Engages other people in organisation –  Support from top management•  More revenue –  1. Find promoters •  2x – 10x more likely to promote you company –  2. Activate promoters –  3. Service Recovery •  With upsell opportunities•  Customer R&D•  Little or no additional work!
  8. 8. How to do it 1Planning and Preparation Client Companies•  Net Promoter Champion organises project –  Get board buy-in –  Organise client data •  Rank into top clients by revenue •  Use 80/20 rule, top box approach •  By account manager, region, etc –  Organise contact data •  Larger clients have more contacts Contacts •  Assign roles ABC (strategic, tactical, operational) •  Get emails (activate with sponsor)
  9. 9. How to do it 2Communication Example Model “Contract” between you and clients •  Your feedback is important to us •  We will solicit feedback on average two times a•  Communication is key year –  Internally •  We will respect your time – very short survey of 2 questions max – will take less than 5 minutes •  Explain program, engage all •  Only a few people in your organisation parts of business •  We will read and act on all of the feedback, board level if necessary –  Externally •  We aim to improve service •  We will be transparent with feedback and share •  Alert clients to actions your results with you at least once a year •  Encourage feedback•  Use a good email tool and Internal communication survey mechanism From the desk of the CEO: •  Satisfaction is everyone’s –  If you are budget limited and business have time, Survey Monkey and •  We will be seeking feedback from all clients Excel can work •  Respond fast, use as an way of increasing customer sales •  Don’t be afraid of feedback Hint: CustomerGauge is an excellent all-in-one solution!
  10. 10. How to do it 3Measurement•  Measurement –  Survey people 2x a year –  Very short survey – 2 questions Tips •  Don’t survey all clients at once. –  Track who is responding •  Stagger them – do some each week or month•  Engagement •  Then you can act on issues and build in learning. –  Measure the engagement –  Aim for 100% response from top clients Contacting Customers: •  Everyone has email these days –  Aim for overall 60%+ •  Make sure survey is mobile compatible engagement from contacts •  Get the sponsor in the client to help get the contacts •  Some believe that non-responders should be classed as detractors •  If response is less than 60%, you need to work on sales engagement
  11. 11. How to do it 4Acting on responses•  Organise and be ready –  Expect 50% or more of the responses to give comments –  Read every comment•  Distribute comments around organisation –  Do it centrally or let the teams arrange –  CLOSE THE FEEDBACK LOOP•  Track open issues and time to close –  Acknowledge with 24 hours –  Let clients know what you will do –  Escalate to board serious issues. –  Report internally on issues•  Categorise, and deal with issues tactically or strategically TIP! Incentivise staff to close issues in a short time
  12. 12. How to do it 5Account Management If different management tiers have different views, then explore why•  Organise responses by company•  Present the findings at regular account reviews –  Scores –  Comments –  Track actions –  Improve scores for next timeStart the conversation like this:“Here is what your employees think ofyour investment in our product/services…”
  13. 13. Case Study 1: Large public hi-techcompany•  Net Promoter History –  2 years, mostly manual, last 18m with CustomerGauge•  Operational measurements: –  Survey all clients and client key stakeholders –  Close the look for the respondents – Quickly deal with issues that create passives or detractors –  Board issues at management level•  Metrics (dashboard) •  Support for sales –  NPS –  Notifications to account managers when a –  Survey ratio (how many clients) – 100% respondent answers –  Response rate +70%* (currently at 50% –  Tracking close the loop –  Close Loop ratio: respondents +95%, clients: –  Configured CRM tool (Salesforce) to support 100% Pre survey, follow ups etc –  Board issues: prioritised/priocessed in 3 •  Sales Actions months –  Get info from a client sponsor on WHO to•  Proficiency survey –  Set targets (each unit and account mgmt team) •  Governance –  Set Delta targets for NPS –  Use a 4 box model –  Have meetings with top box clients –  Integrate reports into account plans –  –  Board issues tracked: prioritised OR rejected Everyone involved in a 10 is thanked by the responsible manager
  14. 14. Case Study 1: Results and learnings•  Baseline NPS 10•  Measured NPS at levels: –  Operation (--), Strategic (-), Tactical –(+) –  Conclusion: less personal attention lowers the NPS•  Survey results : –  50% lack of trust (or issues that would eventually destroy trust) •  Lack of Price/product transparency •  Lack Product quality (including old documentation) •  (Invoicing of client mistakes) •  New releases with large costs but dubious values –  Looked at results by product area – Client Focus was largest negative contributor•  How: - Set up an office of NPS –  Make sure actions decided in relation to board issues were carried out –  Identify Detraction and Promoter drivers (eliminate, replicate) –  Identify top CS stars and practices –  Share resources and best practices –  Common targets in addition to local targets•  Stats on which clients are filling it out (or are queued) –  Response rates by accounts –  Response rates by Strategic/Tactical/Operational –  Assist sales to call non-respondents•  Survey Relationships and transactions (support calls)
  15. 15. Case Study 2, 3, 4 Singlehop: Learning from new customer activations how to improve for other new acquistion customers Bavaria Film: RegularBasic American Foods: NPS 60 surveys after each studio engagement has improved engagement and attracted new clients through word of TIP! Case studies on http:// customergauge.com/tag/case-study/ mouth
  16. 16. General Points•  According to industry stats *B2b company average NPS 24 –  Account Management usually about 50% of NPS•  You should survey 2x a year•  Target Response 60%+ –  Non responders – treat as detractors (can’t do 5 min survey, are not engaged) –  Respond immediately to detractors – this can often result in an upsell•  Act on feedback and explain to clients•  Don’t tie compensation to NPS•  Don’t incentivise clients (you may not be allowed to in regulated businesses anyway)•  Digital signage brings real time data in•  Transparency is key –  http://www.genroe.com/blog/how-to-confidently- and-transparently-share-your-transactional- customer-feedback/6309•  Toshiba: Toshiba – Customer Satisfaction transparency: http://www.toshiba.co.jp/csr/en/customer/cs.htm * http://www.netpromoter.com/netpromoter_community/ blogs/conference_sf_2009/2009/01/27/b2b-and-nps-a- match-made-in-heaven
  17. 17. Thank you!•  Questions?•  More details: info@customergauge.com

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