Net promotersystem.brainstormingfollowup.2011


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  • Today’s presentation will focus on the measuring this loyalty and happiness, i.e. customer satisfaction., specifically after our events. We’re trying to find a quantifiable way to see what kind of return on investment we’re getting, and we’re trying to use data in a meaningful way to advance our relationships with our alumni.So for so many Alumni Affairs operations, the mission is something along the lines of “engage alumni in the life of the university” “give time, talent and treasure,” “spread the good word about the university to anyone who’ll listen,” etc. Right?In short, we want them to not only give back, but also PROMOTE the university to fellow alumni. That’s why we do activities, correct?
  • So to give you contect, In FY 2010, Cornelliansproduced at least 1,400 events.
  • Figure an average of 50 people at each event, that means there were about 70,000 opportunities to engage alumni in our mission, and to find out if we’re actually moving them.
  • In business, customer service has become a key differentiator. Think Apple, JetBlue, Wegman’s, Zappo’s, Four Seasons.While we’re not a business, per se, there are some concepts from the corporate world that we need to embrace. One of those concepts is creating a culture of customer service so we too can be top of mind when alumni are choosing where to give their time, talent, and treasure.In last decade, the number of non profits in the US rose more than 30%. Not to mention that discretionary time and income has declined too. We have formidable competition for people’s gifts, and although Cornell is doing amazing things to make the world a better place, so are hospitals, theaters, the boy scouts, etc. So a key way we can differentiate is to provide a level of service that convert alumni into rabid fans.
  • We know that loyal and happy customers, in our case, alumni, tend to give more time, talent and treasure. They’re more engaged. And more and higher quality engagement is supposedly why we spend a couple million dollars a year to produce events, right??
  • So – here’s an alum who just went to an event. How can we quantify how happy and loyal she feels?
  • Well there are techniques, like measuring facial muscle tension, heart rate, and pupil size, to measure happiness with a product or service. It’d be great to hook people up with nodes at events and measure all this, but it’d be a bit distracting!
  • So instead, we do surveys after every event. From those surveys, we get a metric (Net Promoter Score) and customer comments. Together, they give us a story about how our customers feel about Cornell after they engage with us at events. The next few slides show you how to calculate the Net Promoter Score.
  • The metricis called the Net Promoter Score, and it’s derived from this question.It was developed by Director Emeritus at Bain & Company – you’ll recognize the name as the consulting company Cornell used to help reduce administrative costs here. Their Director, a Gentleman named Fred Reichheld, a guru in the loyalty biz, writes for HBS Press and best-selling books about loyalty.Fred did 2 years of research to figure out the correlation between customer service survey answers and ACTUAL behavior. His goal was to find out how customer satisfaction surveys actually correlated into actual behavior into more profits. He muddled through thousands of data points to find the one question that took out as much bias and ambiguity as possible.Like any metric, it’s not the full story, it’s not a magic bullet, but when taken into context properly, it can help you understand your customers better, help you improve your programming, help you improve your relationship with your alumni.
  • The NPS is based on a zero to 10 score.9s and 10s are called your “Promoters” – they were happy, they’re so loyal that they’ll tell all their friends. These are people that will put their reputation on the line to colleagues and classmates to promote your service. Research shows that the higher this percentage, the higher the company’s growth.Example: Chris Marshall took 50 PCUAD colleagues to a NYC restaurant called Nobu. He’s a promoter.7s and 8s are passive – they liked it, but they’re not going to rave or do your brand any favors.0s to 6s are detractors – they’re likely to tell people the programming isn’t worth their time.
  • Here’s how we calculate the score.
  • Here’s how we calculate the score.It measures the linkage between loyalty, profits, and growth. Together with the comments, it gives us real time data to act on post-event.
  • The NPS is relative to the industry.Here are some averages of various industries.
  • Now here’s how some companies fare. These are the best in their industry.Now, I’ll show you scores from our programs.But before I do, I want to describe my methodology:Only listing programs that have statistically significant number of events. Threw out events where something went awry – only 2 people answered or whatever.And again, using the score as one piece of the puzzle. We also want to look at the comments and special circumstances, who’s the audience, what’s the format, etc.
  • I want to stress that I only put programs here who have been using this tool regularly – wall street, COR, class, regional, affinity have dabbled in it, but not statistically significant enough.So, using this question as the quantifiable metric, plus looking at other clues in the surveys, can tell us a lot.Use this score as your quantifier, then go back and piece together the reasons why. Reach out to customers who gave you a 9 or 10 and find out why.Reach out to 0 and 6 to find out why so you can fix things. Enterprise Rental Car uses it this way: they focus on the 9s and 10s – they go to the bright spots. What was is that made people so excited about their experience? Great example of how to use this data: Tina reached out to everyone who gave us their name in the survey and talked with people. She found out that many detractors (people who answered 0 to 6) answered that way because they’re mad a Cornell or at the dues-free initiative, not because they didn’t like the conference. Without this follow-up, we’re missing a huge opportunity to connect with our customers and deliver the kind of customer satisfaction we pride ourselves on.
  • Why is this slide blank? Because it’s where we’ll start our brainstorming session on Thursday, November 10th!I would like you all to think about the following two discussion topics:How can we convince/enforce to all staff that this extra engagement outreach is critical to our mission of “connecting Cornellians back to Cornell”? What format do I need the data in so that I can easily start contacting alumni?Next year, after we’ve been able to infuse this into our routines, I’d like the following slides to look like this:
  • Net promotersystem.brainstormingfollowup.2011

    1. 1. Turning Alumni Loyalty into Action Alumni Affairs October 2011
    2. 2. 1,400 events
    3. 3. 70,000 opportunities
    4. 4. Customer Satisfaction
    5. 5. =
    6. 6. She’s smiling, shelikes us!
    7. 7. How can wequantify this?
    8. 8. Net Promoter ScoreBased on your experience at this event,how likely are you to recommend asimilar event to another Cornellian?
    9. 9. Net Promoter Score
    10. 10. Net Promoter Score Percentage of (10 + 9) MINUSPercentage of (0 + 1 + 2 + 3 + 4 + 5 + 6) EQUALS NPS
    11. 11. Example (47.1+11.8) -MINUS-(0+0+0+0+5.9+5.9+0)= NPS of 47.1%
    12. 12. Industry Average Airlines 15%Grocery Stores 49% Cable TV -3% Credit cards 9%Health insurance -5%
    13. 13. Company Score Jet Blue 60%Wegman’s 78% Apple 72% Verizon 13%USAA Home 78% Insurance
    14. 14. 31% = CEN Webinars65% = CEN46% = CSV54% = DJS Conversations52% = Faculty Online Conversations80% = Affinities/Mosaic71% = PCCW’s Annual Meeting41% = CALC 201152% = TCAM 2010Our average: 52%
    15. 15. Follow UpNet Promoter System
    16. 16. Follow UpNet Promoter SystemAt Cornell, we’re using survey responsesto:• Identify attendees who are promoting or dissing our programs and reaching out to engage them further• Course correct our event details so the experience keeps improving
    17. 17. Follow UpNet Promoter SystemWe’ve found:Example after example here of peoplewho were unsatisfied, but as a result ofour calls they became donors orvolunteers, and they started telling theirfriends they should come to our events.Example after example of programs thatincorporated customer suggestions intotheir thinking, then saw NPS increase.
    18. 18. Thank you in advance!