Transform An Unhappy Customer Into Your Strongest Promoter: Why NPS Works Part Two
In the early days of NPS at Sleep Number we effectively started with these two questions and a sample of customers. We then read the verbatim comments and looked for themes to develop a Pareto chart of drivers of customer dissatisfaction. A Pareto is a bar graph, where the lengths of the bars represent frequency or cost and the Pareto visually depicts which areas are more significant. This approach isolates the vital few core issues that cause most of the problem, similar to the 80-20 rule (20% causes 80% of the problem).
We then used Six Sigma to understand the root cause of detractors. After 2 years, Sleep Number had improved the NPS score by 500%, transforming detractors into brand advocates/promoters. The CEO at that time, was quoted in the Q4 2010 Earnings Call as saying, “NPS Increased 500% during the past two years, and we are now firmly in the range of top performing companies and we believe we can advance even further to join the elite.”
Every company can figure out a statistically relevant, unbiased customer sample or a particular service process to get started by using a simple survey tool and a spreadsheet. First, collect customer comments verbatim. Then read them, look for common themes, and build that Pareto of customer dissatisfaction drivers. From there, develop your vision for process improvement. This should not consume a huge investment in resources, necessitate a lengthy survey (keep it short!), or require much time or cost.
When you present your findings to executives, be sure to show a balance of positive and negative verbatim in each meeting. Connect with your customer and show you have a plan in place to transform detractors into promoters. NPS is a very effective way of translating the voice of the customer into a quantified process improvement strategy!
The Rendement Group is available to ensure your NPS efforts are successful. Contact us for an initial, free-of-charge consultation.Get a Free Consultation