An Introduction To Onva

An introduction to Onva

How to gain a positive word-of-mouth advantage to drive sales and loyalty

Delivering a word-of-mouth advantage

© 2010 Onva Consulting

The business results Onva

delivers

Helped client outgrow market by 2.5 times

Saved £7.25 million in customer acquisition costs by reducing each unit from over £75 per customer to under £3!

600% increase in revenue between adviser customers and normal customers

Secured over 100,000 loyal customers

New product launches most successful in client 50 year history

Failing marketing initiatives identified and cancelled – saving significant sums

Improved employee NPS by 35 points – more motivated, positive loyal and engaged


We live in the

Recommendation Generation


The decline in traditional

marketing

2% trust advertising

2% trust DM

15% trust customer opinions posted online

49% trust personal recommendations

So 64% of people trust the opinions of others and

not what you say


The Loyalty Factor

• Creating secure revenueRepurchase

• Presenting opportunities to cross-sell and up-sell and produce significant extra revenueBuy additional products

• Driving new customers at less cost who then become PromotersRefer/ Recommend

• De-risking decision making and creating effective marketing/sales collateralFeedback

Research has shown that loyal customers/clients behave in four different ways. They...


Who knows best? You or those that invest in you?


The Onva Listen Methodology

1. Listen – Identify customers and

employees that ‘love’ and ‘hate’ you – and

the reasons why - by using Net Promoter

2. Involve – Drive Word-of-Mouth

recommendations (on and offline) by

creating a volunteer sales force

3. Sell – Improve Sales Effectiveness

through customer input


How do you listen to your customers?


Net Promoter – The

Ultimate Question


A globally trusted business

metric


The brands that listen and drive customer loyalty


The Psychology of Recommendations

Does your business miss, meet or exceed

expectations on the promise that you

communicate?

Promoters Business is exceeding customer expectations and they

actively recommend

Passives Business is meeting customer expectations but they

are word-of-mouth mutes and may defect

Detractors Business is missing customer expectations and they

actively bad mouth the product/service


Missing expectations

The danger of not identifying and addressing the reasons for detraction



We also live in the switching generation


The ultimate six pointer in business

How long does it take you to win a new customer?

How long does it take them to leave?

How much time and money do you invest in acquisition?

When you have won them, do you focus on them? Or just look for the next

new customer?

Wouldn’t it be great not having to replace churning customers with new

ones?


Why do your customers leave?

Percentage Reason

23% Unfair fees or charges

22% Poor product or service quality

19% Rude or disinterested employees

12% Couldn't get hold of anyone to deal with my problem

7% Discounts for new customers but not for existing customers

5% Out of territory call centres

4% Inadequate return or refund policy

1% Inadequate environmental policy


Missing expectation leads to...

Creating more Detractors

Draining budget They use costly resources while their issues are being

addressed

Churning They will ultimately defect to a rival

Generating negative WOM Negative recommendations make it harder for a brand to

attract new customers – thus substantially increasing the cost

of operations/cost of customer acquisition.

It is also three times more powerful than positive WOM.

Therefore one potential customer upon hearing a bad

experience will need four positive recommendations to

change their impression/mind


And one bad experience

……


Reducing Detractors while

growing Promoters pays off

Increasing your Net Promoter score by 12% will deliver your business

double the sector growth average

Increasing your share of Promoters by 7% will deliver your business 1%

growth

Reducing your share of detractors by 2% will deliver your business 1%

growth

If your business has an above average NPS profile in its sector you could

see 4x the growth rate

* As discovered by the London School of Economics


What can you do to cut churn?

Ask your customers

Use the Net Promoter question to identify the main reasons people may

want to leave

Tell them what they told you and what you plan to do about it

Identify the reasons you can deal with profitably

Perhaps stop services that you can’t improve profitably


Your employee recommendability

impacts the business

If employees are detractors of the customer experience/service that they

deliver it is highly likely to create detractors amongst your customers as

well.

Employee NPS Customer NPS


Exceeding Expectations

An opportunity to drive sales and loyalty with your own volunteer salesforce



How do you win new business?

Do you know who will buy again?

Do you know who will buy new products and services?

Do you know who will recommend you?

Do you know who will bad mouth you?

Do you know which marketing/sales activities bring the best customers?

Do you have a strategy for increasing your share of wallet?

Are you stimulating conversations online and offline?

Can you do this with total certainty?


What can you do to sell smarter?

Segment your customers by Promoter, Passive and Detractor

Develop different approaches for each

Identify the NPS for each product/service, salesman and marketing activity

– improve accordingly

Activate Promoters – give them reasons and the platform to recommend

Publish and share customer reviews


How strong is your WOM Balance Sheet?

Word-of-Mouth (WOM) is synonymous with

recommendations

Businesses have a WOM Balance Sheet and the

strength of this balance – your recommendability

– is the key to your success


Exceeding expectations leads to...

Generating more Promoters

Greater customer advocates

Repurchasing Creating secure revenue

Buying additional products Presenting opportunities to cross-sell and up-sell and thus

grow revenues

Referring/Recommending Driving new customers at lower cost who become Promoters

Providing Feedback De-risking decision making and creating unique marketing

collateral


It’s about getting your

Promoters talking

Conversations between people who trust each

other about content that interests or inspires

Conversations and content you can’t control

But conversations you can influence with content

you help to create

And conversations you can stimulate with direct

engagement


Bring your promoters on the inside

Give them VIP status

Give them a purpose Business improvement for their benefit

Reward them VIP privileges, first looks

Deeper involvement

Make things really simple VIP votes

Capture their content

Close the loop Regular feedback, inside scoops

Feed them stories to share to drive sales

Benefit from their ideas, advice and tips To set you apart


Retailers in the U.S., the U.K. and

Europe say the following

happened after putting customer-created reviews

on their websites:

77% reported site traffic increases

56% reported improved

conversion rates (= rate of site

visits to actual purchases)

42% reported higher average

order values

Share reviews to build trust


A Simple Case Study

Multi-award winning platform created by the

Onva team

Simple VIP - the largest UK consumer

engagement panel with over 100,000 brand

advisers in a year from a standing start Significant reduction to customer acquisition costs –

2500% less than direct mail! or £7.25m + in savings

Significant increase in product trial – 98% of advisers

try an additional 1-2 products

Products launched via the panel get best response in

50 year history

Free research helps feed PR, marketing and sales

machine

Outperforms market growth by 2.5 times

Leapfrogs global giant to #2 in market


Let your customers guide you

Who better to advise you than the people that

invest in you?

Free research platform that creates economies of

scale

Genuine insight into their behaviour

De-risks marketing campaigns

Directs business on where it misses/exceeds

expectation

Generates deep and lasting customer loyalty


Involvement increases advocacy and loyalty

Work with multiple clients has proven that if a

customer/client is directly engaged by the

business, the Net Promoter score/levels of

advocacy increases dramatically

It has also proven that customers that arrive

through personal recommendations have their

expectations set correctly and become

recommenders themselves


Checklist for sustainable growth

Listen to customers – ask the Net Promoter question

Remove the reasons people want to leave

Identify your Promoters – target them with special sales offering

Activate Promoters to drive a systematic referral stream

Identify the strengths of your business by examining reasons for promotion – accentuate

these in sales activity

Tap into customer creativity to develop new ideas and unique content that sets you apart


What we will deliver you

Millions saved and earned through efficiencies, increased loyalty, cross-selling....the list goes on



Improving sales effectiveness

We identify and ‘activate’ customers who will positively recommend – to help you win new customers

We identify where you can cross-sell and up-sell and help you do this in the most effective way

We identify ways to exceed expectations profitably to create more loyal customers so your competitors can’t steal them

We help you remove the reasons for detraction so you no longer have to battle against negative WOM


Improving sales effectiveness

We create powerful marketing collateral with customers that gives you an edge in the market

We create trusted reviews from customers that increases your status as a ‘safe buy’ and improves the conversion rate of new customers

We identify which marketing you can eliminate and which to focus on to reduce the cost of sale

We listen to customer feedback and then help you develop a more compelling product/brand proposition and sales messages


Onva turns customers and

employees into drivers of growth

Listen Full Net Promoter audit and analysis service – the insight you need to make vital decisions

Identify which customers and clients love or hate you Targeted approach to address needs and improve performance

Identify the strengths of your business by examining reasons for promotion Sales and marketing effectiveness consulting and programmes

Identify the weaknesses of your business through reasons for detraction Business improvement consulting and programmes including involvement and innovation


Expertise

Crispin Manners – CEO and Founding Fellow of PRCA

Crispin Manners is a recognised authority in harnessing the power of Net Promoter and Word-of-Mouth as

part of an integrated sales, marketing and loyalty strategy.

Crispin has over 25 years experience in delivering integrated communications solutions for businesses and

brands. Discovering Net Promoter® has allowed Crispin to systematise his approach and to use customer

feedback to build more compelling propositions for clients and to develop award-winning engagement

programmes that turn customers and employees into advocates.

Throughout his career he has created business momentum for his clients and his own business. He led his

earlier company (Kaizo) to be the fastest growing PR Company in the UK in 1991, the #2 performer over a

decade in 1997, the #5 best PR firm to work for in the UK, the OFEX Company of the Year in 2001 and the

CBI’s Innovative Company of the Year in 2003. He is a natural facilitator, a skilled mentor and valued for the

strategic choices he uncovers for his clients.


Expertise

Matt Manners – Director

Matt Manners is an award-winning marketing and PR professional with over a decade’s

experience. Over the past two years he has been focused on empowering businesses

through Net Promoter®, to directly engage with customers, drive up levels of customer

advocacy, sales and deliver a word-of-mouth advantage.

Previously he worked as a PR professional in both London and Sydney for two of the

world’s largest PR firms – Weber Shandwick and Burson-Marsteller. He has

worked across brands such as PlayStation, Siemens, PalmOne, Simple, Unicef, Hewlett

Packard, Castrol and the Football Federation Australia. His ability and experience allows

him to ascertain the needs of a business rapidly and to implement a successful,

customer loyalty and communications strategy that delivers targeted results.


Questions?

Contact Crispin Manners +44 7774774272

Or

Matt Manners +44 7799876473

Documents

An Introduction To Onva