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GE Capital Solutions

detractor. passive. promoter. GE Capital Solutions. Operationalizing the Net Promoter Score (NPS). Broadband Cable Association of Pennsylvania (BCAP). Brian Fedigan VP – Customer Experience May 6 th , 2008. GE Capital Solutions. World’s leading leasing and finance business.

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GE Capital Solutions

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  1. detractor passive promoter GE Capital Solutions Operationalizing the Net Promoter Score (NPS) Broadband Cable Association of Pennsylvania (BCAP) Brian Fedigan VP – Customer Experience May 6th, 2008

  2. GE Capital Solutions • World’s leading leasing • and finance business • Leasing, lending and financing to help businesses grow • equipment financing • vendor programs • inventory finance/floor planning • franchise finance • state and local government programs

  3. GE Capital Solutions Businesses GlobalElectronicsServices Fleet Services Equipment FinanceServices Franchise Finance CommercialDistribution Finance Xerox Capital Services Asia Europe Canada Mexico/Latin America

  4. Agenda • NPS 101 • Leadership Engagement • Building the Infrastructure • Listen & Act • Driving a Customer Centric Culture

  5. What is NPS? • NPS is a Culture Change effort to drive Customer Excellence • NPS is not another VOC initiative • NPS is not market research

  6. The roots of NPS • Fred Reichheld: • Consulting Magazine named him one of the "25 Most Influential Consultants" in 2003 • His work has appeared in The Harvard Business Review, Wall Street Journal, New York Times, Financial Times, Fortune, Business Week and The Economist The Ultimate Question, Fred Reichheld, Harvard Business School Press, 2006

  7. “On a scale of 0 to 10, how likely is it that you would recommend our company to a friend or colleague?” Extremely likely Not at all likely 10 9 8 7 6 5 4 3 2 1 0

  8. 8 7 How is NPS determined? “On a scale of 0 -10, how willing would you be to recommend [GE Capital Solutions] to a friend or colleague?” 10 9 - 10 Promoters 9 7 - 8 Passively Satisfied % Net promoters % Promoters % Detractors 6 5 4 0 – 6 Detractors 3 2 1 0

  9. Value of Customer Loyalty… NPS is the best predictor of customer likelihood to repurchase or refer… Repurchase Rate % • 12 Industries • 4,000 customers Cost of Sales • 10 years Loyalty • A satisfied customer tells 3 others to purchase • A dissatisfied customer tells 9 others NOT to purchase • It takes 12x to win back a dissatisfied customer

  10. Correlation for Cable and Telephony Customers Source:The Power Behind a single Number: Growing Your Business with Net Promoter, a Satmetrix White Paper.

  11. NPS is not: • A Stand-alone VOC Metric: It is a measure of a customer’s willingness to recommend you and repurchase your products and services. • A Complete Diagnosis of Root Causes: NPS will not tell you why the customer gave you such a rating. • A Guarantee That Your Business Will Grow: To grow, a business has to act upon the ratings it receives. • A Customer SatisfactionMeasure: A customer could be satisfied, but not feel as if they would go the extra yard in actually recommending GE to a friend or colleague.

  12. NPS is correlated with growth across a wide range of industries and markets. Our P&Ls that had higher NPS scores, also experienced the higher growth. Why NPS?… It’s a growth tool NPS and Growth True for Capital Solutions ’99-’02 Growth R2: 0.68 NPS Score Source: Fred Reichheld, Bain & Company

  13. Does NPS correlate to organic growth? For TFS…..Absolutely! On Total Revenue, promoters do generate higher revenue Vs non promoters… +2% Non-promoters +6% Promoters -4%

  14. Do It Right Two Common Errors Two “Best In Class” Solutions • Confusion between NPS research and NPS operating system • Bolting NPS onto existing (failed) feedback processes • Its not research….simplify your survey & feedback process • Ask the NPS question, talk to the customer, find the learning

  15. The Overarching Objective GROWTH through understanding and delivering CUSTOMER VALUE • It’s not really about the score… • It’s not even about the change in the score… • It’s about a process to understand the expectations of your best customers and to consistently meet those expectations • Develop a solid NPS process to match your business • Figure out why customers are detractors or promoters • Use that understanding to drive growth Best metric of likelihood to repurchase

  16. The ultimate in customer loyalty…

  17. Commit/Leadership Engagement

  18. NPS in GE “NPS is the best formula I have seen in my career here……and I want everybody to get on board” Jeff Immelt(CEO,GE)

  19. NPS Is Every Leader’s Job • Understand your NPS results • Identify and resource NPS priorities • Drive accountability for NPS improvements • Make NPS integral to your growth strategy

  20. Building The Infrastructure

  21. Wing To Wing NPS Feedback-Automate Postcard notifications are sent to target customers NPS leader creates target customer list VOC vendor surveys desired customer(s) Customer responses stored Red/Green Alerts Generated NPS leader updates customers on action(s) taken Reports generated and sent to NPS leader Update on action(s) taken sent to NPS leader NPS leader routes alert to functional leader Follow up actions documented Functional and Business Leaders champion improvement/growth opportunities Functional leader follows up with customer

  22. Connecting NPS Feedback To AM’s NPS Database PULL PUSH

  23. Cap Sol: NPS Summary – (GE vs. Comp) Results drilled down through the org hierarchy. Detail available through “Link” on right side.

  24. Listen & Act

  25. Implementing “Listen” Analyze Segment Survey • Find patterns • Use customer experience councils • Resource with cross-functional teams • Actionable • Include dormant & new customers • Survey at capacity to act • Follow up with passives & promoters • Share audio verbatims across the organization

  26. -20% 8% -10% 15% 3% -20% 3% -12% 4% -8% -5% 2% -4% 1% Verbatims – 2007 vs. 2006 NUMBER OF RESPONDENTS, N=130(2007), N=120(2006) Responsiveness People Operational Effectiveness Product Structure Others Investor Database 2006 verbatims Cycle Time 2007 verbatims Areas of improvement Admired areas

  27. Verbatim Deep Dive-”Detractor” N N Main Reason for 0-6 score… N N • 80% of AM issues around servicing the account and controlling expectations N N N N

  28. Customer Experience Council Customer Council (CEC) • Inputs & Actions • Verbatims • NPS Scores • Confirm survey structure • Review previous survey & follow-up actions • Outputs & Deliverables • Alert follow-up • Track Results • Define action plans • Execute on actions or champion/drive Lean events • Establish ownership Discussion Action X-functional Membership

  29. Implementing “Act” Tactical Strategic • Call detractors in 48 hrs. • ‘Loyalty Leader’ to coordinate • Create action plan by customer & track aging • Identify systemic fixes • Prioritize Lean projects • Prioritize innovation $ • Measure customer retention • Do 3 month follow up

  30. Customer follow-up – tactical approach 48 hour red alert follow-up Customer Loyalty Council (CLC) detractor acknowledged effort to connect with customer NPS scores Verbatims Discussion passive Action Initiated thru automated, P&L specific, alertworkflow process promoter

  31. Red Alert : Details Total Cases - 26 Turn Around Time Closed Cases-Trend 100% Avg. TAT: 2.81 days (N) 90% 7 (N) 6 80% (N) (N) 6 5 70% (N) 5 60% 4 4 50% Closed cases (N) Still Open (N) 40% (N) 3 (N) Closed 30% 2 20% 1 Closed On Time (N) (N) (N) 1 10% 0% 0 Survey- Survey- 1 day 2 days 4 days 5 days and 1-06 1-05 Number of days for resolution

  32. 2008 NPS Customer “SWAT” Team NPS Investor Results NPS Customer Results 10.8% 9.2% 23 % 32 % Internal Survey Swat Teams External Survey Swat Teams Focus areas: Communication/relationship Fred Debi Chris Tom * Syndication process Scott Sue John* Market intelligence John Melanie John Steve* People Craig Jennifer Kim* Focus areas: Operational effectiveness Dan Kim Sally* Investor relationship Karim Dan Ken* • Documentation • Communication • Transparency • Post deal process • Cycle times • Bidding process • Understanding investor needs/strike-zone • Integrity • IT • Feedback • Response time • Documentation • Creativity • Effectiveness • Know customer needs • Other • Knowledge • Training * SLT champions

  33. 3 Delivering results 21.4 days -4.6X 4.7 days Aug ‘07 Dec ‘07 ‘07 Fleet Volume +30% Vs OP Driving Growth – cycle timeMexico – fleet, vehicle lease renewals 1 NPS feedback • Slow • Too many handoffs • NPS = 5 (detractor) 2 LEAN event • Cross-functional team work-out + SLTs • 90 days advance alert • Closing specialists

  34. Driving Customer Centric Culture

  35. Implementing Cultural Changes Push down in the organization “Culture” Verbatims • Broadly across the organization Shift Focus • Segment more, survey less…, from score to action Framework • Define your businesses framework for “Listenand Act” Communicate “Customer” • Say “customer” more

  36. Driving Engagement..one employee at a time • Personalize the customer experience for individuals • Targeted communication plan for each level • CE Newsletters, Dashboards, Success Story • Focused Customer Experience Training • Understanding Customer Moment’s of Truth • Aligned org. metrics @ each level tied to G&O’s • NPS Awareness Campaign • NPS/Lean eLearning • nice! Reward & Recognition Program

  37. = The Way we Work NPS (Loyalty) • Educate people on the system…frequently! • Calls, meetings, training sessions – do it live! • Involvement & Ownership • Focus on the big picture • Keep published reports at a high level • Drive the actions not the number • Look for training opportunities • Communicate examples of customer praise Create a Buzz! Do the right thing

  38. Roadmap

  39. Roadmap Actions • Define strategies for leveraging Promoters and converting Passives • Lean workouts for process issues to recover Detractors • Launch communications plan Top 3-5 Opportunities • Identify top 3-5 growth opportunities • Loyalty learning from NPS VOC • Identify champions to drive the growth opportunities Leadership Engagement • Enable cross-functional engagement with senior leadership team • Make loyalty part of the growth council • Regular operating and reporting rhythm

  40. Roadmap Drive Strategy Refine the Methodology • Incorporate NPS into strategic account planning • Top account portfolio reviews across CS • Define actions to migrate Passives and leverage Promoters • Continue to fix Detractor issues with LEAN Communicate • Shorter surveys & more responses • More open-ended feedback • Engage SLT in the follow up process • Consistent across all P&Ls Internally: • NPS customer success stories • Proven results Customers: • What we heard from you • Actions we are taking to improve

  41. Key success factors • Leadership team support … don’t start without it • Know your business challenges and what NPS should deliver • Determine owners, report out processes, …all operating mechanisms • Determine methods that work in your market – Target high response rates • Relish the low scores • Weed out Legacy surveys buried within your business • Questionnaire comes at the end ... Once you know what you want to know … to do what • Use Change Acceleration Process (CAP) tools … This is Cultural change

  42. The ultimate in customer loyalty…

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