Date post: | 14-Aug-2015 |
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HOW TO BECOME A TRUSTED ADVISOR: KANO AS A WAY OF MAKING IMPORTANCE PERFORMANCE
& NPS DATA MORE ACTIONABLE
Redshift Research
RedshiftResearch
ARE YOU LOOKING FOR THE KEY MOMENT WHEN YOU BECOME
• A trusted advisor to your client
• With strategic planning sills
• And can start talking to other parts of the client’s business?
Well, you might need to put comms objectives to one side and understand how to make their customers happy
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•Where better to start than the Net Promoter Score, backed up by a bit of KANO...?
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SO WHAT’S THE NET PROMOTER SCORE?
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Pioneered by Fred Reichheld, NPS is a customer loyalty metric
It predicts the likelihood of a customer recommending your company to a friend or colleague.
Proponents argue it’s the only measure you’ll ever need to assess the health of your business
NPS Benefits
It’s a single metric
It acts as a kind of ‘health check’
It has international standing
It’s widely used and accepted by corporates
It’s easy for organisations to use and quick for customers to provide feedback e.g. -44, +23 etc.
So it’s easy to see the impact of changes made since the last time it was measured
So you can compare your performance against your competitors, suppliers etc. in some markets
A SINGLE QUESTION AND A SINGLE CALCULATION
Q How likely are you to recommend company/brand/product Xto a friend/colleague/relative (score out of 10)?
• On its own it doesn’t tell you what’s caused “things” to change
• It’s limited as it measures only one dynamic, the likelihood of recommending
• It doesn’t measure issues such as loyalty, satisfaction, trust or the likelihood of repurchase. (We’ve seen some horrendous NPS scores but, in some cases, the “pain” of change is so great it’s unlikely to impact the business in the short term)
•But, it’s a great first point for assessing performance!
BUT ….IT HAS LIMITATIONS
DEEPER ANALYSIS: NOT ALL ATTRIBUTES OF PERFORMANCE ARE EQUAL IN THE EYES OF THE CUSTOMER: INTRODUCING THE KANO MODEL
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Noriaki Kano
Professor Emeritus
Tokyo University of Science
In the late 1970s Kano challenged the conventional belief that improving each attribute of a company's product or service will lead to increased customer satisfaction. Kano believed:
Some attributes create higher levels of customer loyalty than others.
Factor Potential impact on reducing NPS detractors (people scoring 6 or less)
Potential impact on increasing NPS promoters (people scoring 9 or 10)
One dimensional/Satisfier
Raising performance will have an impact
Raising performance will have an impact
Must-be/Basic Raising performance will have an impact
None, no matter how high the performance
Attractive/Delight None, no matter how poor the performance
Raising performance will have an impact
Indifferent None None
not all attributes of a product or service performance are equal in the eyes of the customer,
TO UNDERSTAND WHICH ATTRIBUTES ARE IN THE ‘DELIGHT’ CATEGORY CAN ENABLE YOU TO INCREASE ADVOCACY EXPONENTIALLY
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INSIGHTS AREN’T JUST FOR STRATEGIC PLANNING
•Ultimately clients have to “walk the walk” to bring about a real change but with targeted messaging you’re onto a winner
WALKING THROUGH A KANO EXAMPLESo looking at an example in the data storage market, testing 24 factors, this is how things could fall out….
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e.g. Taking 24 ‘Features’ we found 9 were Basic requirements, 8 were Satisfiers, 1 was Indifferent and
4 were Delighters
@Copyright 2012 ADP, Inc. Proprietary and Confidential Information
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Workplace recovery
The service enables you to reduce internal knowledge risks and
reduce costs
A 24 hour helpdesk is available for minor
software queries and problems
All data corrections and amendments are
completed by your software provider
Implemented service and system meets the
agreed budget
On-site help and assistance during initial
use of system
The data is easy to enter or import into the software
Customised reports are provided as part of the service when you need
them
Software provider takes responsibility for system
changes for your business
It is easy to export data from the software for use
in other systems
Offered a 2 week testing window to test all services provided
by the software prior to parallel run
Local availability of multiple network providers
You experience service level continuity
through software specialist change
Regular contact with the software provider
to review your business needs.
Implementation is consistent with the
expectations from the sales process
Local availability of cloud providers &
other business partners
Near perfect task accuracy rates are always achieved
Provider can manage functions of the system
within your working practices
High density environments
Software can produce reports that allow you to
manage its function
Provide you with advice to ensure you remain
compliant with legislation
The software provider follows up to resolve all bugs and issues post
implementation
Response to enquiries are made within the
agreed timeline
Resilience of data centre infrastructure
Delighter Satisfier BasicIndifferent
Looking at NPS influence in combination with satisfaction performance we can isolate those with the negative impact
So identify where remedial action is needed immediately
OVERLAYING PERFORMANCE ON TOP OF KANO CAN OFFER A SHORT LIST OF RECOMMENDATIONS
E.G. 4 CAN HAVE THE BIGGEST NEGATIVE IMPACT ON NPS AND COULD CONTINUE TO CREATE NPS DETRACTORS IF UNATTENDED TO
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The service enables you to reduce internal knowledge risks and
reduce costs
A 24 hour helpdesk is available for minor
software queries and problems
All data corrections and amendments are
completed by your software provider
Implemented service and system meets the
agreed budget
On-site help and assistance during initial
use of software
The data is easy to enter or import into the software
Customised reports are provided as part of the service when you need
them
Software provider takes responsibility for system
changes for your business
It is easy to export data from the software for use
in other systems
Local availability of multiple network providers
You experience service level continuity
through software specialist change
Regular contact with the software provider
to review your business needs.
Implementation consistent with the
expectations from the sales process
Local availability of cloud providers &
other business partners
Near perfect task accuracy rates are always achieved
Provider can manage functions of the
software within your working practices
High density environments
Software can produce reports that allow you to
manage its function
Provide you with advice to ensure you remain
compliant with legislation
The software provider follows up to resolve all bugs and issues post
implementation
Response to enquiries are made within the
agreed timeline
Resilience of data centre infrastructure
Delighter Satisfier Basic Indifferent
Quality of the support provided within the data
centre
Workplace recovery
Looking at NPS influence in combination with satisfaction performance we can isolate those with the most positive impact
So identify where the quickest wins to delight customers
OVERLAYING PERFORMANCE ON TOP OF KANO CAN OFFER A SHORT LIST OF RECOMMENDATIONS
E.G. 4 CAN HAVE THE BIGGEST POSITIVE IMPACT ON NPS AND LOYALTY AND COULD DRIVE MORE NPS PROMOTERS IF ADDED EFFORT IS APPLIED HERE
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Workplace recoveryThe service enables
you to reduce internal knowledge risks and
reduce costs
A 24 hour helpdesk is available for minor
software queries and problems
All data corrections and amendments are
completed by your software provider
Implemented service and system meets the
agreed budget
On-site help and assistance during initial
use of software
The data is easy to enter or import into the software
Customised reports are provided as part of the service when you need
them
Software provider takes responsibility for system
changes for your business
It is easy to export data from the software for use
in other systems
Local availability of multiple network providers
You experience service level continuity
through software specialist change
Regular contact with the software provider
to review your business needs.
Implementation consistent with the
expectations from the sales process
Local availability of cloud providers &
other business partners
Near perfect task accuracy rates are always achieved
Provider can manage functions of the
software within your working practices
High density environments
Software can produce reports that allow you to
manage its function
Provide you with advice to ensure you remain
compliant with legislation
The software provider follows up to resolve all bugs and issues post
implementation
Response to enquiries are made within the
agreed timeline
Resilience of data centre infrastructure
Delighter Satisfier Basic Indifferent
Quality of the support provided within the data
centre
E.G. WHY ARE THESE THE 4 OF FOCUS? THESE CREATE THE EASIEST WAY TO CONVERT PASSIVES TO PROMOTERS
Attribute Measured…
Mean Performance Score
KANO Positive CS Coefficient
The service enables you to reduce internal knowledge risks and reduce costs
5.6 0.72A 24 hour helpdesk is available for minor software queries and problems*
7.1 0.70
Local availability of multiple network providers7 0.66
Customised reports are provided as part of the service when you need them
6 0.61
Attractive AttributeSatisfier Attribute
Base: 152
@Copyright 2012 ADP, Inc. Proprietary and Confidential Information 17
*As this is a potential service it wasn’t possible to ask current satisfaction so question was adaptedKano Q: A 24 hour helpdesk is available for minor payroll queries and problems’Satisfaction: Your ability to access a helpdesk for minor queries and problems when you need to
Areas of current low performance though
• NPS – Recommendation score
• Deeper Analysis – Identifying what’s causing people to think the way they do with suggestions for improvements
To work with your client in a different, more engaging fashion to help address issues and amplify the positives
SO WHY SHOULD YOU CARE ABOUT NPS?
Opportunity
• Agencies can use the insight to:
THE KIND OF OPPORTUNITIES FOR AGENCIES BEING INVOLVED WITH NPS CAN OFFER
• Become more of a trusted advisor
• Start talking to other parts of the business
• Aid strategic planning
• Develop messages and content that will address genuine business issues
• Improve go-to-market planning
• Create genuinely effective demand generation initiatives based on the real needs of client’s customers
• Run strategic development workshops based around market insight
• Initiate effective crisis management programmes if the sh*t really hits the fan
• Use it as part of your ROI proof measures
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• Ultimately clients have to “walk the walk” to bring about a real change but messaging can change perceptions and accelerate the rate of acceptance and move the NPS score in the right direction more quickly.
• Having identified the key issues that drive NPS you can develop and run internal messaging sessions and develop internal communications programmes to ensure focus on key drivers and the required changes in behaviour.
• These often focused on the “humanistic” elements of product or service delivery. For example if the client’s software is rubbish (it happens) it’s unlikely we can change that but we could work with them to accelerate and then message on other areas such as: customer service, not over promising, need for a 24/7 help desk etc.
YOU MIGHT NOT BE ABLE TO BUILD ROME IN ONE DAY, BUT YOU’LL STILL BE BETTER INFORMED
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IN SUMMARY
So we’ll still have measures of • Importance
• Performance
• Gap analysis
• NPS
But also a quicker way of identifying • the quickest wins and
• greatest dangers
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We look forward to having the opportunity to work with you
US Office UK Office
212-539-3214 +441732 356399300 Park Ave South Commotion House11th Floor Morley RoadNew York Tonbridge, KentNY 10010 TN9 1 RA
www.redshiftresearch.co.uk
Guy WasherManaging Director
Tel: +441732 356399Mob: +447872024910
get in contact with us to discuss ideas, audiences, methodology etc.
Jane HalesClient Services Director
Tel: +44 1732 356325Mob: +44 7976 555 108
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