Tag: NPS

Asking (and answering) the Ultimate Question

Posted on by Nathan Schock in Uncategorized

In the Ultimate Question, Fred Reichheld tells the story of Intuit, describing a problem that FiveFour regularly helps businesses solve. Co-founder Scott Cook had built a successful company on the mission “To make the customer feel so good about the product they’ll go and tell five friends to buy it.”

When the company was in the start-up phase, the employees learned how to fulfill that mission by observing Cook’s passion for taking care of the customer. “They could all hear him working the service phones himself, talking to customers. They could see him taking part in Intuit’s famous “follow-me-home” program, where employees asked customers if they could watch them set up the software in order to note any problems.”

But growth in the number of employees and locations made learning by following the leader impossible and “Cook was hearing more complaints [from customers] than in the past. Some market-share numbers were slipping. For lack of a good system of measurement and for the lack of the accountability that accurate measurement creates – the company seemed to be losing sight of exactly what had made it great: its relationships with its customers.”

To solve the problem, Cook started measuring customer loyalty through our favorite measurement tool: the Net Promoter Score (NPS), which asks the Ultimate Question: “How likely is it that you would recommend Company X to a friend or colleague?” Respondents score their likelihood on a scale from 1-10, with those answering 9-10 classified as promoters, 7 or 8 passives and 6 or less detractors. Your NPS is calculated by subtracting the percentage of detractors from your percentage of supporters. A positive number means you have more supporters than detractors.

While measurement is an important first step, measurement alone won’t solve the problem that Cook faced at Intuit. The challenge that leaders of growing companies face is how to scale the culture and customer experience that led to the growth to begin with.

That’s what FiveFour calls the battle for better business. We help companies capture that original vision for their culture and how the customer is cared for. But the next step is maybe the most important and what really differentiates FiveFour: we create a customized, ongoing system of learning and development that, over time, transforms the business through increased employee engagement and continuous learning.

Do you resonate with that description of Intuit? Are you noticing more customer complaints and employee disengagement? Take our assessment of your customer experience and we’ll give you some tips you can use to improve your employee and customer experience.

Want to get started measuring your NPS and eNPS (Employee Net Promoter Score)? Just email me and I will give you access to our free, online course showing you how to implement both.

Intuit was profitable and growing at the time they addressed these flaws in their employee and customer experience. But they saw that those flaws were starting to impact their growth. What happened after they addressed them? They now have an NPS of 45 and a market cap of $82 billion, which isn’t bad.

Measuring Human Impressions

Posted on by Nathan Schock in customer experience

My recent post Elephants Don’t Bite was about companies focusing on big things, like the strategic plan or the latest marketing campaign (the elephants), came at expense of the little things, like answering the phone or greeting the customer at the front desk (the mosquitoes) and it’s the latter that can kill you.

In Marketing Rebellion, Mark Schaefer explains why that happens:

We see our foundations of command and control marketing collapsing before our eyes. There are no more lies. There are no more secrets. There is no more control. For more than a century, we’ve built our greatest brands – like Ivory – through an accumulation of advertising impressions. But to survive this final rebellion, companies and brands must be built through an accumulation of human impressions. That is the only thing we trust. That is the only thing that matters.

That’s why the subtitle of Schaefer’s book is “The Most Human Company Wins.” This is also why my company, FiveFour, helps our clients get their customer experience right before we start marketing. The job of marketing is to get a logical prospect to try your company once. It’s the job of your customer experience to get them to come back.

But even marketing is becoming mostly about your customer experience. Writes Schaefer:

Two thirds of the touch points during the evaluation phase of a purchase involve human-driven marketing activities like internet reviews, social media conversations and word-of-mouth recommendations from friends, family and online experts…Two thirds of your marketing is not your marketing.

If human impressions are the most relevant advertising metric, how are yours? Do they create and keep customers? Do you measure them with something like the Net Promoter Score?