Webinar slides from June 29th.

1. “Fear of Feedback”Webinar 29 June 2011 Adam Dorrell CEO Directness Adam.dorrell@directness.net Robert Kerner, Director, Business Development CustomerGauge/Directness June 29, 2011 rob.kerner@directness.net

2. Agenda Reasons behind the “Fear of Feedback”, Examples of best practice – world class companies doing it right Using Net Promoter Score® as a measurement tool Practical ways to deal with positive, negative comments, as well as customer suggestions Automated processes to help close the loop: strategic and tactical Feedback on the feedback – examples of how to get back to customers Questions

3. What we do: Directness B2b customers We provide software-as-a-service solutions to help companies add strong metrics to marketing activities CustomerGauge: Automatically measure, understand and analyse customer sentiment, using Net Promoter Score®. Identify and grow your most loyal customers. Recommendi: A free tool to help start your Net Promoter projects Trusted by global organisations +1 million end-customers measured in 2011 so far Company background: hi-tech marketing: Sony, Dell, Compaq, HP, KPN etc Privately funded, based Amsterdam, NL Consumers Selected Clients

5. Choices

6. Accept, analyse positively, use for future decision making (Joseph Folkman)

7. Feedback is about opportunity

9. Simple concept: “How was it for you?”

10. Who is embracing feedback? Many companies survey: Examples: Avis, Europcar, BA, Hilton Corporate initiative or cultural norm? Favouriteexamples of companies using feedback USAA – changing products as a result of feedback Lego: closely working with customers, designing product lines Philips: packaging, delivery Bavaria Film: changing company culture Apple Stores: “feedback as a gift.”

11. A good template for feedback Net Promoter® Score: Simple 0 – 10 scale: “Would you recommend?” Feedback “Why? Or Why not?” Open-source standard: Becoming a worldwide standard Helps with a “Corporate language” Detractors, promoters Grows a culture of feedback http://customergauge.com/2007/05/2-minute-guide-to-the-net-promoter-score/ Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.

12. Make the survey short! Respect the customer’s time Keep it short Use your CRM system to help you segment customers beforehand Customers hate telling you information you already know. Aim for a high response: 25 – 50% of customers

13. Learning:Fast Response / Empowerment Learnings from CE Company A: Fast responses are more impressive than delayed perfect fixes Pro-active communication within 24 hours (one business day) of customer response Empowering agents to fix issues is less expensive than complex escalations Generally, agents “do the right thing” if trusted: “what can I do to make it right for you right now?” Training issues, guidelines Agents all tracked on NPS, goodwill Relevant to your company: Push responsibility down the chain 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)

15. Get regular feedback so you can manage it: Daily/weekly is best!

16. Classify comments to help prioritise issues

17. GET COMMENts to the right people

18. Act on customer feedback – within 24 hoursProblems! Service issues Logistics Returns etc Suggestions Service Improvements Praise Testimonials Logistics FINANCE WEB

19. Learning:Spread the load of “fire-fighting” Key learnings from CE Company A: Improvement happens when everyone is involved. Breakdown the NPS number by department Ensure departments deal with relevant issues Get comments/issues to right people Team effort to clear issues Relevant to your company Retail: Push comments out to stores, managers to action Call-centres: Assign comments to a group: “hopper”. Track progress

20. Best Practice: Automatically Close the loop Make sure you respect the customers time Put in place systems to help you close the loop Keep your promises to customers “we’ll get back to you”

21. Segmenting Customers by NPS Detractors cost money Promoters are profitable

22. Learning:Segmentation Learnings from CE Company B (limited call centre resource) Not all customers are the same: 7% customers drive 50% revenue. Identify key customers early in process – especially retention customers Discounts not needed, but taking them seriously is. Find ways to delight them, ask opinions VIP line in call-centre “Thank you for your business” letters Empower senior agents (reward) SWAT team for VIP issues (rescue) Relevant to your company: Organise internally Tag customers (or use CustomerGauge) 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 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.

23. Quantify the feedback Organise feedback by “tagging” it Understand the weight of issues by value, impact on NPS, number of customers Can be done in a spreadsheet Or automated with tools like CustomerGauge

24. Publish the good news Use customer testimonials on external sites Use internally Thank customers – gets them involved!

25. Something to aim for… USAA insurance/bank NPS 87 20 testimonials a month 300+ on website *Source: http://www.bizjournals.com/sanantonio/news/2011/02/21/usaa-named-a-leader-in-customer.html#ixzz1Fdd7haXR

26. Lessons: Fear of feedback Communicate the program – Opportunities for company to get better Learn from customer, motivates staff Fast is better– quick fix, acknowledgements Respond in 24 hours Proactive actions impresses customers better planning time for you and call centre Segment to prioritise and identify important issues Use NPS to benchmark It’s not extra work – customers will call in anyway Or worse, they defect. Automation is key to productivity gains Thank customers, and go public Actually make some improvements then tell them! Resources: info@directness.net How did we do? http://recy.me/a1p8

27. Thanks!

28. Learning 4:Learning / Kaizen 改善Kaizen: “change for the better” Best practice from CE Company C: Implement continual learning Bi-weekly champions call with coach Simple: Count the number of “fire-fighting” activities by category – act quickly Advanced: Analyse customer comments, but do it later Ruthlessly prioritiseworklist by customer feedback (NPS v. value v. Number Customers) Get comments out to non-operational teams Short/medium/longterm issues – monthly/quartely focus Use Kaizen principles: Experiment to see what works. Relevant to your company Action on issues is key rather than analysis for perfect strategy …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.