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Measuring What Matters:Our Net Promoter Program
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Agenda
Improving Customer Loyalty Using Net PromoterScores
Atlantic Broadband Net Promoter ProgramOverview & Results
Whats Next
Q &A
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Why should we care about loyalty?
Loyal customers:
Repurchase, or subscribe longer
Buy additional products/services
Provide referrals
Provide constructive feedback
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Enterprise Rent-A-Cars Perspective
The only way to grow is to treatcustomers so well they come backfor more, and tell their friendsabout us. Thats how wed all liketo be treated as customers.
Golden Rule behavior is the basis
for loyalty. And loyalty is the keyto profitable growth.
Andy Taylor,
CEO Enterprise Rent A Car
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Fostering Loyalty is Hard
Easier to generate bad profits than goodprofits
Easier to buy growth, but only for the short
term
Systems focused on financial performance,not quality of customer relationships
Ultimate problem:
Loyalty is hard to define and even harder tomeasure and manage
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Bad Profits Produce Detractors
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Good Profits Lead To Loyalty
Vanguard (mutual funds) cut prices by 1/3 forits largest customers and Vanguards growthskyrocketed
Amazon.com gives free shipping for big orders($50 or more)
Southwest Air doesnt charge change fees, but
provides a credit that can be used over 12months
Intuit simplified its rebate process andincreased market share
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What Is The Ultimate Question?
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Using The Ultimate Question ToCalculate A Net Promoter Score (NPS)
How Likely Would You Be To RecommendUs To A Friend Or Colleague?
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NPS Leaders Grow at 2.5X TheirIndustry Average
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Cable TV & Satellite Provider Scores
How Likely Would You Be To Recommend yourCable TV Or Satellite Provider To A Friend? NPS
20
-3
-8
-34
-45
Source: SatMetrix, Q4 2007 Telecommunications NPS Report
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How Do We Improve?
Begin to measure and report NPS regularly
Identify the key customer segments that are most importantand profitable
These become our core customers
Tailor operations and product as necessary to improveexperience for core customers
Eliminate sources of bad profits
Implement, measure, refineImplement, measure, refine
Requires ownership from the field & support from corporate
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Agenda
Improving Customer Loyalty Using The UltimateQuestion and Net Promoter Scores
Atlantic Broadband Net Promoter ProgramOverview & Results
Whats Next
Q &A
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Atlantic Broadband Net PromoterScore Program Timeline
Early 2006: Initial quarterly email surveys to phonecustomers
Fall 2006: Net Promoter introduced as a 2007 initiative
@ annual Senior Managers Meeting
1stQtr 2007: SkyCreek automated calling pilot programlaunched in PA region
2ndHalf 2007: SkyCreek program rolled out company-wide
1stHalf 2008: Reporting and VIP Program implementation
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Service Interaction Monitoring Process
In HomeService
Sky CreekAutomated
Calling
UniontownSave Team
Day 1 Day 2 Day 3 Day 4
Install orService
CallCompleted;
Customer Calls Made4 Contact Attempts
Followup ResolutionCalls Begin
FollowupService Calls
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Survey questions
1. How satisfied were you with the quality of servicethe customer service agent provided you whencalling?
2. How satisfied were you with the quality of service
the technician provided?
3. How satisfied are you with the current service youare receiving from Atlantic Broadband?
4. How likely would you be to recommend AtlanticBroadband to a friend or family member?
5. May we contact you for any score below a 3?
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Typical Feedback Funnel
5500 Service Interactions~40% Response Rate
2200 Feedback Points
20-30% Dissatisfied Request Followup
500 Followup Requests~50% Contact Rate
250 ResolutionDiscussions
15%Require
Service Call
40 Truck
Rolls
$5/Call:
$1250
$50/truck roll:$2000
$.75/Call:$1500
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NPS Performance Vs. Basic Churn
Central PA, NPS and Basic Churn Trends
1.90%
1.70%
1.30%
0%
10%
20%
30%
40%
50%
60%
June July August Sep Oct Nov Dec Jan Feb Mar Apr
NetPromoterPercentage
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
AvgBasicChu
rn
NPS Up 50%; Churn Down 30%
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0.2
-12
Differences By Type Of Transaction
47
23
35
Overall Install Service
Central
PA
Delmar
NPS Scores By Transaction Type
166%Drop
51%Drop
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1614
9
0.3
-5.4
-10
-5
0
5
10
15
20
Wk 1 Wk 2 Wk 3 Wk 4 Wk 5
Sensitivity To Customer Disruption
Delmar RegionLikelihood to Recommend NPS Scores: August 2007
DCTUpgrade
DVRUpgrade
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NPS Scores By Spending Level
Last BillAmount
Overall
NPS
Promoter%
Detractor
%
More Than
$125 22 52 30
$75 To $125 27 53 26
$25 To $75 32 58 26
Less Than $25 30 56 26
Likelihood To Recommend
Q3 2007
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Key Findings To Date
The data are both sensitive to actual customerexperience and timely
Improved NPS performance appears to becorrelated with reduced churn
Customers who have a service issue are 2-3x morelikely to be a detractor
Our highest spending customers have the lowestNPS exactly the opposite of what it should be: Our highest scores come from customers who spend
between just $25 - $75/month
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Agenda
Improving Customer Loyalty Using The UltimateQuestion and Net Promoter Scores
Atlantic Broadband Net Promoter ProgramOverview & Results
Whats Next
Q &A
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The VIP Program
What is it?
A loyalty effort that targets all customers in goodstanding that have video, internet and phone
services.
How does a customer become a member ofthe VIP program?
Existing triple play customers with no collection historywill automatically be enrolled.
New customers who subscribe to all three services willbe enrolled 30 days after installation.
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What does a VIP Get?
A VIP customer gets PriorityService: Priority routing to the head of the call queue (tier 1 and tier 2)
Priority routing for same day service and installationappointments if calling before 3pm. (Next day appointments ifafter 3pm)
We do not miss these appointments!
VIP customers who call hear: Thank you for being an Atlantic Broadband VIP customer. Your
call is being priority routed to the next available customerservice representative.
Additional potential benefits focused around priority: Prioritizing HSI traffic for VIP customers in times of peak usage
First access to day and date titles on VOD
Others TBD
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VIP Activity 1st60 Days:
Less than 10% of total call volume is VIPrelated
Priority routing to Tier 2 is very muchappreciated
Averaging 40 priority service calls per week
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NPS Measurement and TrackingEvolution
Expand to measure relationship NPS in addition totransactional NPS
Drive more granular response tracking
Track customer descriptors to segment and trend better Track NPS scores down to the individual level
Focus on back office functions to optimize visibilityand management
Integrating daily/weekly/monthly data into our standardreports
Simple trouble ticketing system to track and manage NPSdriven follow-up tasks, actions and reasons
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Starting Your Own Program: 3 Keys
Start simple and evolve
Think about who your best customers are andhow to improve value for them
You MUST understand and follow-up ondetractor problems or youre wasting yourtime
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Concept Overview Summary
Increasing customer loyalty leads to growth
Net Promoter Scores are the single bestmeasure of loyalty and highly correlated withgrowth
Start