Generally, the aims of a performance appraisal are to:Give employees feedback on performanceIdentify employee training needsDocument criteria used to allocate organizational rewardsForm a basis for personnel decisions: salary increases, promotions, disciplinary actions, bonuses, etc.Provide the opportunity for organizational diagnosis and developmentFacilitate communication between employee and employerValidate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements.To improve performance through counseling, coaching and development.Rob question – when might you NOT give feedback? (if you don’t care….)[graphic – golf swing, improvement trap]Feedback serves as motivation for many people in the work place. When one receives either negative or positive feedback, they decide how they will apply it to his or her job. Joseph Folkman says that to find the greatest level of success in an organization, working with other people, a person should learn how to accept any kind of feedback, analyze it in the most positive manner possible, and use it to further impact future decision making.
Is there a fear?We think so – otherwise businesses would just make it routine. Some do by the way, and we’ll come to that.But why is it not normal?Waiters do it the whole time?
They have something in common - These are mostly NPS companies
Customers on hold or transferred cost money. Each day a customer on hold costs money. Metrics can be calculated for this, average EUR15 a day. Customers realise that companies are not perfect, but they value fast response.
CustomerGauge helps assign comments out to stores (email automatically), also keeps track of open and in-progress
CustomerGauge can automatically identify these customersHelp you priortitse the fixes
Fear Of Feedback Customer Gauge Webinar Final29062011
“Fear of Feedback”Webinar 29 June 2011<br />Adam Dorrell<br />CEO Directness<br />Adam.firstname.lastname@example.org<br />Robert Kerner, Director, Business Development CustomerGauge/Directness <br />June 29, 2011<br />email@example.com<br />
Agenda<br />Reasons behind the “Fear of Feedback”,<br />Examples of best practice – world class companies doing it right<br />Using Net Promoter Score® as a measurement tool<br />Practical ways to deal with positive, negative comments, as well as customer suggestions<br />Automated processes to help close the loop: strategic and tactical<br />Feedback on the feedback – examples of how to get back to customers<br />Questions<br />
What we do: Directness<br />B2b customers<br />We provide software-as-a-service solutions to help companies add strong metrics to marketing activities<br />CustomerGauge: Automatically measure, understand and analyse customer sentiment, using Net Promoter Score®. Identify and grow your most loyal customers.<br />Recommendi: A free tool to help start your Net Promoter projects<br />Trusted by global organisations<br />+1 million end-customers measured in 2011 so far<br />Company background: hi-tech marketing: Sony, Dell, Compaq, HP, KPN etc<br />Privately funded, based Amsterdam, NL<br />Consumers<br />Selected Clients<br />
Feedback – what’s it all about?<br />Feedback is something we get all through life<br />School, parents, sports<br />360s at work<br />What do we do with it?<br />Negative or positive – how to react<br />Act on it? Reject it? <br /><ul><li>Information
Sometimes it gets worse as you try to improve…</li></li></ul><li>So why the fear?<br />Is there a fear?<br />No one likes to hear bad news<br />Common reactions:<br />“It’s not my fault” / Defensive<br />“It takes time to fix issues” / Extra work<br />“It’s the way we always do it” / “Business as usual” stance<br />“We always get complaints” / Complaints<br />“I’d like to help, but I can’t…” / frustration with internal issues <br />Legacy - Old memories<br />Other reasons<br />Technically or logistically difficult<br />Long surveys turn off customers and employees <br />
Simple concept:<br />“How was it for you?”<br />
Who is embracing feedback?<br />Many companies survey:<br />Examples: Avis, Europcar, BA, Hilton<br />Corporate initiative or cultural norm?<br />Favouriteexamples of companies using feedback<br />USAA – changing products as a result of feedback<br />Lego: closely working with customers, designing product lines<br />Philips: packaging, delivery<br />Bavaria Film: changing company culture<br />Apple Stores: “feedback as a gift.”<br />
A good template for feedback<br />Net Promoter® Score:<br />Simple 0 – 10 scale: “Would you recommend?”<br />Feedback “Why? Or Why not?”<br />Open-source standard: Becoming a worldwide standard<br />Helps with a “Corporate language”<br />Detractors, promoters<br />Grows a culture of feedback<br />http://customergauge.com/2007/05/2-minute-guide-to-the-net-promoter-score/<br />Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.<br />
Make the survey short!<br />Respect the customer’s time<br />Keep it short<br />Use your CRM system to help you segment customers beforehand<br />Customers hate telling you information you already know.<br />Aim for a high response: 25 – 50% of customers<br />
Learning:Fast Response / Empowerment<br />Learnings from CE Company A:<br />Fast responses are more impressive than delayed perfect fixes<br />Pro-active communication within 24 hours (one business day) of customer response<br />Empowering agents to fix issues is less expensive than complex escalations<br />Generally, agents “do the right thing” if trusted: “what can I do to make it right for you right now?”<br />Training issues, guidelines<br />Agents all tracked on NPS, goodwill<br />Relevant to your company:<br />Push responsibility down the chain <br />The agent that I spoke to at the call centre was friendly, professional and helpful and talked me through various options to try to resolve this. Unfortunately the problem could not be fixed at this time but the agent transferred me to the internet customer service who quickly arranged for a replacement phone and for collection of the faulty one. This was delivered within the agreed time frame and the delivery driver was kind enough to wait for me to check the contents of the box (as advised by the XXXXXXX agent) which was appreciated…., I'm happy to say that I have received an excellent customer service experience regarding this issue with the faulty phone. (42095938)<br />
Acting on Comments<br /><ul><li>Best practices:
Get regular feedback so you can manage it: Daily/weekly is best!
Learning:Spread the load of “fire-fighting”<br />Key learnings from CE Company A: <br />Improvement happens when everyone is involved. <br />Breakdown the NPS number by department<br />Ensure departments deal with relevant issues<br />Get comments/issues to right people<br />Team effort to clear issues<br />Relevant to your company<br />Retail: Push comments out to stores, managers to action<br />Call-centres: Assign comments to a group: “hopper”. Track progress <br />
Best Practice: Automatically Close the loop<br />Make sure you respect the customers time<br />Put in place systems to help you close the loop<br />Keep your promises to customers “we’ll get back to you”<br />
Segmenting Customers by NPS<br />Detractors cost money<br />Promoters are profitable<br />
Learning:Segmentation<br />Learnings from CE Company B (limited call centre resource)<br />Not all customers are the same: 7% customers drive 50% revenue. <br />Identify key customers early in process – especially retention customers<br />Discounts not needed, but taking them seriously is.<br />Find ways to delight them, ask opinions<br />VIP line in call-centre <br />“Thank you for your business” letters<br />Empower senior agents (reward)<br />SWAT team for VIP issues (rescue)<br />Relevant to your company:<br />Organise internally<br />Tag customers (or use CustomerGauge)<br />On some current XXXXX blackberry deals, for the same monthly contract that i pay, customers receive 200 minutes, so why can't i receive the same deal. i have been a XXXXXXX customer for 13 years and have never ever changed to another supplier, so come on reward the people that remain loyal year after year.... 2766437<br />It took over a week to effect delivery to a retail store and communication was not up to the usual XXXXXX standard. I feel that XXXXXXX have been cutting corners recently and as a loyal (10 years) customer, I expect much better. 2799363.<br />
Quantify the feedback<br />Organise feedback by “tagging” it<br />Understand the weight of issues by value, impact on NPS, number of customers<br />Can be done in a spreadsheet <br />Or automated with tools like CustomerGauge<br />
Publish the good news<br />Use customer testimonials on external sites<br />Use internally<br />Thank customers – gets them involved!<br />
Something to aim for…<br />USAA insurance/bank<br />NPS 87<br />20 testimonials a month<br />300+ on website<br />*Source: http://www.bizjournals.com/sanantonio/news/2011/02/21/usaa-named-a-leader-in-customer.html#ixzz1Fdd7haXR<br />
Lessons: Fear of feedback<br />Communicate the program – Opportunities for company to get better<br />Learn from customer, motivates staff<br />Fast is better– quick fix, acknowledgements<br />Respond in 24 hours<br />Proactive actions impresses customers<br />better planning time for you and call centre<br />Segment to prioritise and identify important issues<br />Use NPS to benchmark<br />It’s not extra work – customers will call in anyway<br />Or worse, they defect.<br />Automation is key to productivity gains<br />Thank customers, and go public<br />Actually make some improvements then tell them!<br />Resources: firstname.lastname@example.org<br />How did we do?<br />http://recy.me/a1p8<br />
Learning 4:Learning / Kaizen<br />改善Kaizen: “change for the better”<br />Best practice from CE Company C: Implement continual learning<br />Bi-weekly champions call with coach<br />Simple: Count the number of “fire-fighting” activities by category – act quickly<br />Advanced: Analyse customer comments, but do it later<br />Ruthlessly prioritiseworklist by customer feedback (NPS v. value v. Number Customers)<br />Get comments out to non-operational teams<br />Short/medium/longterm issues – monthly/quartely focus<br />Use Kaizen principles: Experiment to see what works.<br />Relevant to your company<br />Action on issues is key rather than analysis for perfect strategy <br />…activities that continually improve all functions, and involves all employees from CEO to assembly line workers. Eliminates “Muri” (overly hard work). Encourage experiment using scientific method to eliminate waste. <br />