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Best practice series, relationship vs. transactional, surveys - what is best for Net Promoter?


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What works best for Net Promoter® Score: Relationship Surveys or Transactional Surveys?

Find out how in just 17 minutes in this interactive session, the next in our Net Promoter Best Practice Series.

Led by Robert Kerner and Adam Dorrell, this short webinar will cover the differences between a relationship survey and a transactional survey and give some interesting examples of where/when to use each of them. Once you understand the differences, we will discuss the pros and cons of each and whether a “hybrid” model might be a good fit for your organisation.

Topic: Best Practice Series: Relationship vs. Transactional surveys


Survey overview and why we recommend Net Promoter
Definitions and examples of relationship and transactional surveys
Uses in each type in B2B, B2C and B2E (Employee) surveys
Hybrid models
Pros and cons of each type of survey
Key takeaways

This is a fast run through as an overview of the issues, plus a short Q&A session at the end. It should be useful for those considering the design and implementation of a Net Promoter program, or anyone in a customer facing or research role in your organization.

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Best practice series, relationship vs. transactional, surveys - what is best for Net Promoter?

  1. 1. CustomerGauge, Best Practice SeriesRelationship vs. Transactional Surveys V Adam Dorrell, Robert Kerner, CEO CustomerGauge/Directness Director, Business Development CustomerGauge/Directness
  2. 2. Agenda V•  Survey overview and why we recommend Net Promoter®•  Definitions and examples of relationship and transactional surveys•  Case Studies•  Pros and cons of each type of survey•  Key takeaways® Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.
  3. 3. Relationship vs. Transactional Surveys Two go in, one comes out!... Or is that the only answer?
  4. 4. What we do: Directness B2b customers•  We provide technical solutions to help companies add strong metrics to Consumers marketing activities –  CustomerGauge: Automatically measure, understand and analyse customer sentiment, using Net Promoter Score®. Identify and grow your most loyal customers.•  Used by global organisations –  +1 million end-customers measured since 2007 –  +25,000 marketing events tracked since 2008 Selected Clients•  Company background: hi-tech marketing: Sony, Dell, Compaq, HP, KPN etc –  Privately funded, based Amsterdam, NL
  5. 5. If you can’t measure it, you can’t manage it…* Technology shift is driving change in loyalty measurement Pre-Internet Post-Internet Market Research driven Operationally driven 1x a year Continuous (daily, weekly) “mega” survey – consumer fills in Smart survey pre-merged with CRM demographic data 40 questions 1 question Statistically correct sample, 1000 Census, 100,000+ customers/month customers $250K - $1m+ $25 - 100K No standard metric Net Promoter® Score * Peter Drucker
  6. 6. When customer feedback goes wrong… Question 41 of 50•  Most customer surveys… –  ask too many questions for marginal use –  Ask contacts for information you already know –  Do not respect customers time Alert! You must fill in all of the questions! –  Have low response rates –  Need to be interpreted by skilled market researchers•  Actions? –  Little – normally too late for response –  Get left on shelf for a year Thick reports get left on the shelf, too late to action –  Customers frustrations not answered•  Expensive and little operational use Survey only once a year: 3Qs without update…
  7. 7. Introduction to Net Promoter Score7
  8. 8. Relationship Surveys•  What is a relationship survey? –  Periodic “pulse” of your customers to gauge customer loyalty (normally quarterly, half year or yearly) – sometimes called “flights” –  Tends to align with company financial calendar –  Provides comparisons, Time 1 vs time 2 –  Asks the same customer, same question but at different times•  Where is used? –  Used extensively in B2B scenarios provides a “litmus test” of the distribution network loyalty and issues –  Annual Employee surveys –  End users, survey a sample of the database once a year –  Can drive “customer satisfaction bonus” 8
  9. 9. B2b: RelationshipClient BackgroundMulti-national adhesives company organised by verticalindustry. Net Promoter Score Pilot in Automobile division.Few client companies (around 25) but multiple customercontacts in each company. Working with consultingpartner to maximise sales opportunities. The SolutionThe Problem CustomerGauge survey: Multi-language survey: EN / IT /Good CRM data from consulting partner, challenge was DE / JP. Mail-merge letter as initial alert, plus 3 waves ofto present data for client in meaningful way as there were sending (primary, reminder1 / reminder2) with extra workso many individuals in only a few companies. on response as needed). Custom reports. Data deliveredAdditionally, there was a 4 week deadline to implement back to CRM systemand complete surveying. Summary StatsImplementation •  Total: 727 individuals surveyed in less than 30CustomerGauge worked with Consulting partner to build companiessolution. Full system was up in running in 3 weeks in July •  Response for NPS: 335 (46%) Target 40%2010. A special report was created for client to show •  Verbatim comments: 186 (26% total)relationships in company, and highlight key promoters •  Note: 100% of target customer companies provided aand detractors by job role and influence (“loyalty response.spectrum”) Customer QuoteFuture direction: Company has implemented 2x a year •  “The survey uncovered a new application for product,survey period, pilot rolling out to rest of company 2011 plus 4 new business opportunities worth $250K+”
  10. 10. Transactional Surveys•  What is a transactional survey? •  A survey based on a business “trigger” or “action”, ie. Customer purchases a product, calls the contact centre, post service call •  Gives immediate insight to a customer recent experience •  Will be very focused on a particular customer touch point •  Provides a continuous trend of results for analysis•  Where is used? •  Used extensively in B2C scenarios to provide “real-time” customer feedback and verbatim comments •  Across all industries but started mostly in tech world (availability of clean customer data) 10
  11. 11. B2c: TransactionalClient BackgroundFinancial trading company, HQ in London with operationsacross Europe and Asia. Engagement with Clientservices manager, frustrated with internal issues.The ProblemCustomers were sold products by enthusiastic salesteam and traders but not well trained or supported in use.Contact centre was working hard to retain customers butwere not supported by rest of business. Director wished The Solutionto supply rest of business with voice of customer and Net CustomerGauge b2c survey system in place since 2008Promoter Score to benchmark improvements. integrated with various CRM and call-center systems around the world. Automated XML plus manual ExcelImplementation uploads. Implemented as single global system with localCustomerGauge set up to continually survey customer reports. Overall dashboard for head office. Multi-contacts with call centre. All interactions with agents by: language survey. Workflow and Agent lite version. Digital•  Telephone Signage. Careful de-duplication rules in place.•  Email 3 years of data instantly available..•  Web-chatEach interaction captured, matched with CRM system Summary Statsand uploaded to CustomerGauge. Screens given to each •  Total: 100,000 customers surveyed in 9 countries,agent, plus wall screens. Weekly reporting to all volume now 10,000 emails/mdepartments •  Response for NPS: Approx 30% (54% with comments) •  More than 18,000 verbatim commentsFuture direction: More country roll-outs. Extending to •  Success stories: Initial success was transmittingrelationship surveying of clients for rest of business customer dissatisfaction to other departments, getting them to “own it”. Strategic changes made as a result. Overall NPS improvement of 25 points since implementation. Now part of the company “operating system”
  12. 12. Pros and Cons Relationship Transactional Pros Cons Pros Cons Hard to manage “waves” of Good for “Litmus test” of Allows for trend analysis Requires a bit more setup to responses (ie. 2,000 organization get started responses at once) Usually tied to financials/ Easy to manage high survey Data integrity and quality is Hard to make operational volumes critical operational review cycle Question more vague Great for integration to other Can be a little harder to Straight forward set-up “based on your last 3 systems (CRM/ERP etc) summarize by quarter months of service…) More rich data as survey is Organization needs to be Hard to compare sameCustomers only answer 4 or normally based on a single tuned to deal with daily customer response against surveys a year “transaction” responses a previous one
  13. 13. Programmed Sending: a “Hybrid” model•  Combine the bests parts of a relationship survey but also gain the advantages of a transactional Some Gotchas: survey 1)  Be sure you have a robust rules based email system to1.  Step 1: Import all the dataset that you would manage “over surveys” normally send in one wave 2)  Be sure to have an2.  Step 2: Parcel the database into daily of weekly Unsubscribe feature so not to SPAM people, very important in groups equally to survey all the group in a specific Europe especially. timeframe (say every 12 weeks) 3)  Create a way in the system to see continuous feedback3.  Step 3: Send only the group either once a day or (trends) as well as change the week. reporting to quarterly views (side by side)•  Results: Customers get one survey a quarter and 4) Key is setting up business the company gets continuous feedback! rules.
  14. 14. B2B: Single flight to continuous transactionalClient BackgroundMajor European film studio and AV media servicebusiness wished to understand client relationships, andimprove relationships in facilities hire (as pilot) The SolutionThe Problem CustomerGauge survey: NPS survey as pilot for singleWorking initially with a consulting partner to strategically division with manual tagging to understand issues. Laterimplement Net Promoter as a way to make company developed into multi-division system (with head office“customer focused”. Problem was how to make NPS roll-up), continual surveys (data loaded from spreadwork with skeptical managers (just one question). Have sheets weekly) with self-service L1/L2 diagnostics andto survey for each division privately, with roll-up for head “fire-fighting” escalations with reminders. Weeklyoffice. management reports sent automatically.ImplementationCustomerGauge worked with client to build lists and Summary Statsconduct a pilot survey for single division (Sept 2010). •  Total: (for one division) 737 surveys YTD, with 42%Eventually the entire company have adopted NPS and NPS response, 70% have comments.surveys are now done continuously •  NPS: 60+Future direction: Company has completely Customer Quoteimplemented NPS – weekly reports help guide the •  “Really helps with our customer relationships – voicebusiness and management. Now surveying after each of customer now in everything we do, NPS is now thefacilities hire (soap opera episode!) language of our management meetings” (TBC - AD)
  15. 15. Key Take Aways•  Know what is possible!q  Relationship surveys do not need to be sent all at once, use programed sending to create “transaction like” surveyingq  For transactions, think about business triggersq  Evaluate your business model, look for when people have an “experience”, survey thereq  If you know that you have a known customer decision point ie. change of call plans, survey before to get insightq  Covering various customer touch points allows for deeper understandingq  Lead any survey campaign with a marketing message to prep them that surveys are comingq  B2B surveys can provide an in depth of knowledge of downstream customers by surveying all functions