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 Agenda: 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.

1. CustomerGauge, Best Practice Series
Relationship vs. Transactional Surveys
V
Adam Dorrell, Robert Kerner,
CEO CustomerGauge/Directness Director, Business Development
Adam.dorrell@directness.net CustomerGauge/Directness
rob.kerner@directness.net

2. Agenda
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• 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. Relationship vs. Transactional Surveys
Two go in, one comes out!... Or is that the only answer?

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. 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. 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. Introduction to Net Promoter Score
7

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. B2b: Relationship
Client Background
Multi-national adhesives company organised by vertical
industry. Net Promoter Score Pilot in Automobile division.
Few client companies (around 25) but multiple customer
contacts in each company. Working with consulting
partner to maximise sales opportunities.
The Solution
The 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 of
to present data for client in meaningful way as there were sending (primary, reminder1 / reminder2) with extra work
so many individuals in only a few companies. on response as needed). Custom reports. Data delivered
Additionally, there was a 4 week deadline to implement back to CRM system
and complete surveying.
Summary Stats
Implementation • Total: 727 individuals surveyed in less than 30
CustomerGauge worked with Consulting partner to build companies
solution. 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 a
and detractors by job role and influence (“loyalty response.
spectrum”)
Customer Quote
Future 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. 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. B2c: Transactional
Client Background
Financial trading company, HQ in London with operations
across Europe and Asia. Engagement with Client
services manager, frustrated with internal issues.
The Problem
Customers were sold products by enthusiastic sales
team and traders but not well trained or supported in use.
Contact centre was working hard to retain customers but
were not supported by rest of business. Director wished
The Solution
to supply rest of business with voice of customer and Net CustomerGauge b2c survey system in place since 2008
Promoter Score to benchmark improvements. integrated with various CRM and call-center systems
around the world. Automated XML plus manual Excel
Implementation uploads. Implemented as single global system with local
CustomerGauge 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-chat
Each interaction captured, matched with CRM system
Summary Stats
and 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/m
departments
• Response for NPS: Approx 30% (54% with comments)
• More than 18,000 verbatim comments
Future direction: More country roll-outs. Extending to • Success stories: Initial success was transmitting
relationship 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. 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 same
Customers 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. 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 to
1. Step 1: Import all the dataset that you would manage “over surveys”
normally send in one wave 2) Be sure to have an
2. 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 feedback
3. 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. B2B: Single flight to continuous
transactional
Client Background
Major European film studio and AV media service
business wished to understand client relationships, and
improve relationships in facilities hire (as pilot)
The Solution
The Problem CustomerGauge survey: NPS survey as pilot for single
Working initially with a consulting partner to strategically division with manual tagging to understand issues. Later
implement 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 spread
work with skeptical managers (just one question). Have sheets weekly) with self-service L1/L2 diagnostics and
to survey for each division privately, with roll-up for head “fire-fighting” escalations with reminders. Weekly
office. management reports sent automatically.
Implementation
CustomerGauge worked with client to build lists and Summary Stats
conduct 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 Quote
implemented NPS – weekly reports help guide the • “Really helps with our customer relationships – voice
business and management. Now surveying after each of customer now in everything we do, NPS is now the
facilities hire (soap opera episode!) language of our management meetings” (TBC - AD)

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” surveying
q For transactions, think about business triggers
q Evaluate your business model, look for when people
have an “experience”, survey there
q If you know that you have a known customer decision
point ie. change of call plans, survey before to get
insight
q Covering various customer touch points allows for
deeper understanding
q Lead any survey campaign with a marketing message
to prep them that surveys are coming
q B2B surveys can provide an in depth of knowledge of
downstream customers by surveying all functions