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The Journey to Customer Loyalty

NPS Lean
Vivian Hairston Blade
Master Black Belt - Marketing GE Consumer & Industrial
Net Promoter is a registered trademark of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

Learning Objectives
NPS A growth enabler NPS A simple framework Improve using Lean Six Sigma Growth Measuring success Mobilizing sustainable growth Culture
Net Promoter is a registered trademark of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.
1 GE VHB 2008 Net Promoter Conf Jan 2008

NPSA growth enabler

Our leadership believes..


We are using a simple metric called Net Promoter Score (NPS) to measure how customers view GE. The absolute score is less important than the trend. We learn from both promoters and detractors. Most importantly, we have been able to associate NPS improvement with growth. NPS is simple and we can use it across the Company.
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Jeff Immelt CEO, GE

GE: Model for organic growth


Growth as a process
Technology/ services Growth leaders Customers

Organic growth (V%)

2-3X GDP

Innovation

Execute for growth


Globalization

Commercial excellence

4%

Historical

2007

Getting results: sustainable .. visible .. valuable


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NPS @ GE
B2C & B2B

Practical business applications

P r o d u & P r c o t c e s s
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NPS A simple framework

NPS: The Goal


The goal must be to go beyond mere satisfaction to increase Promoters and reduce Detractors. NPS is NOT about managing the score.

.NPS IS about how we improve customers experiences!

Listen

Act

Grow
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Toolkit to drive growth


NPS
Validate

Listen
Diagnose & Fix

sure Mea

Growth

Customer Metrics

Ac t
Communicate

Lean

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LISTEN:
Experience vs. Expectations

Implementing Listen
Segment
Traditional Non-Traditional Include lost & new customers Align with business strategy

Survey
Ensure objectivity Audio record Follow up to find root causes Immediately feed results with audio into the organization
Survey questions: Score & Why
1. On a scale of 0 to 10, how likely is it that you would recommend to a friend or colleague? 2a. Promoters: What factors most influenced your rating? 2b. Detractors / Passives: What would we have to improve or do differently for you to be extremely likely to recommend?

Analyze
Find patterns Use customer experience councils Resource with crossfunctional teams

Listen experience vs. expectations


Important Consumer Cues / Attributes
Experience Cues
Expectations / Needs / Wants

Product Cues
Expectations / Needs / Wants

Short-term Quality

Delivery & Installation Brand Experience / Perception Long term Performance

Capacity / Dimension

Food Preservation

Long-term Quality

Flexibility and Convenience Features

Appearance

Call-Center Interaction Service Experience & Problem Resolution

Cleanability Economical Operation

Quiet Operation

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Listen experience vs. expectations


Differentiators:

To Grow.
must deliver on key cues Exceptionally well

Creating the wow-factor


Loyal Promoters
Ordinary products/ services delivered exceptionally Exceptional products / services delivered well

Passively Satisfied

Nail the basics:


Eliminating defects
Source: Fred Reichheld, Bain & Company, Inc.

Product meets customer needs

Product works as expected

Problems are resolved as expected

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ACT:
Leveraging Lean Six Sigma to drive improvements

Implementing Act
Tactical
Create action plan by customer & track progress Do 3-6 month follow-up Identify systemic fixes

Strategic

Prioritize & resource strategic opportunities Use Lean to improve customer facing processes Hold leaders accountable

Lean Six Sigma and Growth


Creates capacity to fund growth by freeing people from nonvalue added work Stimulates increased revenues by improving cycle times, being faster to the market with less defects
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Lean Six Sigma and Growth


Manufacturing Defect Reduction, Cycle-time Improvements Engineering Design For Reliability, Drawing Accuracy Info. Technology Application Development, System Efficiency Finance Billing Timeliness /Accuracy, Risk Analysis Services Accurate appointment times, Repair Turnaround Distribution On-time transportation, Inventory control Sales Face time, Accurate Orders, Timely Quotations

If there is an output, there is a process. Lean Six Sigma will work!

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Lean Six Sigma and Growth


Focus on continuous improvement
Lead Time/Cycle Time

Process
Value Add Time Non Value Add Time

Lean Attacks Waste by


reducing cycle time

Six Sigma Attacks defect


reduction & variation Most value streams value add activity is

Three type of activities


Non Value Add

Not necessary and does not add value

Necessary but does not add value

2-5% of total cycle time 95% - 98% of a process is waste!

Value add

Lean Principles & Enablers: Waste


Making or processing more than needed Overproduction Broken Light bulbs Scratched appliances Defects Cant Access the Home Page Multiple applications awaiting approval Product in Warehouses Unnecessary document/ Excess Inventory data storage
Conveyance of material

Navigating multiple screens to input data Surgeon Nurse Unnecessary Motion Rework Entering same data multiple times Excess Processing Learning Curve On decisions On Systems On Equipment Waiting
Failure to use good

Delivering Hard Copies Transportation Unrealized Creativity

ideas from anywhere


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Lean Principles & Enablers


Heij u nka

Pugh Matrix

Pull

Moo 7 Ways ns h House of Toyota ine n JIT a b O an K W A 1 Piece Flow SM ED Takt Time
St

Po ke
or k

Yok e

ap tti M g he Spa

an da rd W

3P

Visu al M a

Value Stream Map


nag eme nt
r e s b O

io t va

h S n

s t ee

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MEASURE:
Growth Measuring success

Measuring Growth
Measure results against key customer & business metrics
NPS Transaction Quality Pre/Post-Sales Support Accessibility Repurchase Rates Profitability Referral Sales Cost-to-Serve Quote Conversion Rates
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Responsiveness

Cycle-Times Market Share

Builderskey investments for growth.


Purchase / Ownership Cycle
Sales / Construction Move-in Ownership / Live-in

Improve the customer sales, construction & move-in experience

Enhance ownership experience & customer service after closing

Exceed Expectations
Satisfaction Loyalty Repeat Visits

Cost-toServe

Referral Sales

Repurchase
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Retailerskey investments for growth


Purchase Cycle
Shopping In-Store Purchase Post-Sales / Service

Improve the customer shopping & buying experience Exceed Expectations


Satisfaction Loyalty Repeat Visits

Improve customer service after the sale

Repeat Visits

Referral Sales

Repurchase
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Mobilizing sustainable growthCulture

Mobilizing Sustainable Growth


Growth requires Retooling the way we Think & Operate
Dollars

New Technical Thinking

Culture Change

NPS / LEAN

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Mobilizing Sustainable Growth


Building a loyalty focused culture to realize growth
Measure NPS for strategic customer segments Clearly Define Customer Expectations Resource strategic Priorities

Culture

Use LEAN to deliver Exceptional Value Propositions Build a Culture of Accountability for Customer loyalty Stimulate Growth through Passionate Customer Advocates
Listen Act Grow
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NPS / LEAN SIX SIGMA

Customer Loyalty Ignites Growth

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Questions

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