Net Promoter Programs: Separating Signal from Noise
2nd October 2011
The enormous amount of customer feedback data generated by Net Promoter 1 (Closed-Loop Feedback, Customer Insight & Action, Voice of the Customer etc) programs generates a very interesting challenge: "how do you separate out the signal from the noise?"
The programs that we are involved with follow a four step process of 'Listen', 'Act', 'Discover' & 'Improve' that reflect at least two levels of analysis and action.
The first level ('Listen', 'Act') occurs with front-line staff and is dominated by a need to monitor the immediate customer feedback and follow-up customer requests for a call-back as soon as possible. The first reflex is (& should be) action. Front-line managers & staff typically are time-pressed and the emphasis is on "improving the customer experience one customer at a time"; focusing on detailed comments and a follow-up call that can reveal underlying drivers of customer satisfaction or advocacy. The numbers (i.e. NPS, Customer driver ratings) are, of course, important for weekly or monthly trending and to provide context for comments; but it is the comments themselves that provide the real grist for feedback to and coaching for local staff and inform follow-up actions generally.
The next level ('Discover', 'Improve') is typically at a Regional (or cross-functional) level and should be more strategic in nature - looking at patterns across a Region and issues that cannot be addressed at the front-line without Regional or Corporate support. With the rapid advances in text analytics it is very tempting at this level to stay focused on the comments but our experience is that as the feedback is aggregated the need to rely on the numbers becomes critical. It is very easy to analyse comments and stumble over an insight that backs up your gut-feel or pre-disposition; but without the numbers, it is also very easy to overplay the significance of your insight or, worse still, be downright wrong!
The solution we believe lies in building a strong framework of structured data - data that can build contextual understanding of customers (e.g. customer value segment/behavioural profile, store format, shopping date/time) and data that can ultimately address whether actions are having the desired impacts on customer drivers, NPS and sales for example. This contextual data will not always be there from day one. Point of sale data and customer profiling and segmentation data may need to be added over time and the customer drivers assumed in surveys may just not explain enough. However, with perseverance and a "test-and-learn" approach, this framework can be built.
Once you have the ability to reliably navigate the structured data and gain a sense of proportion, it is then time to build the stories that support a well-founded hypothesis. At the strategic level, the customer comments then again become critical in bringing the insights to life - providing the board room example, the water-cooler conversation and the emotional connection that inspires the creation of brand advocates.
1. Net Promoter, Net Promoter Score and NPS are registered trademarks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld.
