GE Capital Solutions

GE Capital Solutions

Operationalizing the Net Promoter Score (NPS)

Brian FediganVP – Customer ExperienceMay 6th, 2008

detractorpassivepromoter

Broadband Cable Association of Pennsylvania (BCAP)

2 Operationalizing NPS

04/20/23

World’s leading leasing

and finance business

GE Capital Solutions

Leasing, lending and financing to help businesses grow

• equipment financing

• vendor programs

• inventory finance/floor planning

• franchise finance

• state and local government programs

Franchise

Finance

Fleet Servic

es

Equipment

FinanceServices

GlobalElectroni

csServices

CanadaMexico/

Latin America

Europe

CommercialDistribution

Finance

Xerox Capital Services

Asia

GE Capital Solutions Businesses


04/20/23

•NPS 101

•Leadership Engagement

•Building the Infrastructure

•Listen & Act

•Driving a Customer Centric Culture

Agenda


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What is NPS?

NPS is a NPS is a Culture ChangeCulture Change effort effort to drive to drive Customer ExcellenceCustomer Excellence

NPS is not another VOC initiative

NPS is not market research


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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

“On a scale of 0 to 10, how likely is it that you would recommend our company to a friend or colleague?”Extremel

y likely

Not at all likely

10 9 8 7 6 5 4 3 2 1 0


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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?”

% Promoters

% Detractors

0 – 6Detracto

rs

7 - 8Passively Satisfied

9 - 10Promoter

s

109

87

654321

% Net promote

rs

0


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Value of Customer Loyalty…NPS is the best predictor of customer likelihood to repurchase or refer…

•4,000 customers

•12 Industries

•10 years

Cost of Sales

Loyalty

Repurc

hase

Rate

%

• 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


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Correlation for Cable and Telephony Customers

Source: The Power Behind a single Number: Growing Your Business with Net Promoter, a Satmetrix White Paper.

82%

48%

22%

detractor passive promoter

NPS Rating

Purc

hase

& R

efer

ral

Rate

s (c

ombi

ned)

http://www.satmetrix.com/pdfs/NetPromoterWPfinal.pdf

http://www.satmetrix.com/pdfs/NetPromoterWPfinal.pdf


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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 Satisfaction Measure: 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.


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-10

-5

0

5

10%

-10 0 10 20 30 40 50 60

AmericaWest

Alaska Airlines

TWA

Southwest

USAir

ContinentalNorthwest

Delta

United

AMR

3 Year Growth (1999-2002)

Net Promoters

$10B2002

Why NPS?… It’s a growth tool

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.

R2: 0.68

Source: Fred Reichheld, Bain & Company

NPS Score

’99

-’0

2 G

row

th

NPS and Growth True for Capital Solutions


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Does NPS correlate to organic growth? For TFS…..Absolutely!

-4%

+2%

+6%

Non-promoters

Promoters

On Total Revenue, promoters do generate higher revenue Vs non promoters…


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o Confusion between NPS research and NPS operating system

o 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

Two “Best In Class” Solutions

Do It Right

Two Common Errors


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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

1. Develop a solid NPS process to match your business

2. Figure out why customers are detractors or promoters

3. Use that understanding to drive growth

The Overarching ObjectiveGROWTH through understanding and delivering CUSTOMER VALUE

Best metric of likelihood to repurchase


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The ultimate in customer loyalty…

Commit/Leadership Engagement


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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)


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NPS Is Every Leader’s Job

1. Understand your NPS results

2. Identify and resource NPS priorities

3. Drive accountability for NPS improvements

4. Make NPS integral to your growth strategy

Building The Infrastructure


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Customer responses

stored

Wing To Wing NPS Feedback-Automate

NPS leader creates target customer list VOC vendor surveys

desired customer(s)

Reportsgenerated and

sent to NPS leader

Functional and Business Leaders champion

improvement/growth opportunities

Update on action(s) taken

sent to NPS leader

Postcard notifications are sent to target customers

Red/Green Alerts

Generated

NPS leader routes alert to functional

leader

Functional leader follows up with

customer

Follow up actions

documented

NPS leader updates

customers on action(s) taken


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Connecting NPS Feedback To AM’s

NPS Databa

se

PUSH

PULL


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Cap Sol: NPS Summary – (GE vs. Comp)

Results drilled down through the org hierarchy. Detail available through “Link”

on right side.

Listen & Act

AnalyzeSegment Survey Actionable

Include dormant & new customers

Survey at capacity to act

Follow up with passives & promoters

Share audio verbatims across the organization

Find patterns

Use customer experience councils

Resource with cross-functional teams

Implementing “Listen”


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Verbatims – 2007 vs. 2006

Admired areasAreas of improvement

-2%

-3%

-9%

-12%

-3%

-5%

-39%

1%

2%

2%

4%

7%

23%

Cycle time

Investor database

Others

Product Structure

OperationalEffectiveness

People

Responsiveness

8%-20%

15%-10%

3%-20%

3%-12%

4%-8%

2%-5%

1%-4%

NUMBER OF RESPONDENTS, N=130(2007), N=120(2006)Responsivene

ss

People

Operational EffectivenessProduct

Structure

Others

Investor Database

Cycle Time

2006 verbatims

2007 verbatims


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Verbatim Deep Dive-”Detractor”

80% of AM issues around servicing the account and controlling expectations

53% 28% 7% 12%

Account Manager

Product Credit All Other Issues

59% 20% 11% 10%

Service

Availability & Responsiveness

Personal Behavior

All Other Issues

Main Reason for 0-6 score…

N

NN

N

N

N

NN


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Customer Experience Council

Inputs & Actions

1.Verbatims2.NPS Scores3.Confirm survey

structure4.Review

previous survey & follow-up actions

Discussion

Customer

Council (CEC)

ActionX-functional Membership

Outputs & Deliverables

1.Alert follow-up2.Track Results3.Define action plans4.Execute on actions or

champion/drive Lean events

5.Establish ownership

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


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48 hour red alert follow-

up

Initiated thru automated, P&L

specific, alert workflow process

acknowledged effort to

connect with customer

Customer follow-up – tactical approach

NPS scoresVerbatims

Discussion

Customer Loyalty Council (CLC)

Action

detractor

passive

promoter


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0%10%20%30%40%50%60%70%80%90%

100%

Survey-

1-05

Survey-

1-06

Still Open

Closed

Closed On Time

Total Cases - 26

Open - 10No action 8No owner name 2

5

6

1

4

0

1

2

3

4

5

6

7

1 day 2 days 4 days 5 days and

Number of days for resolution

Clo

sed

cases

Turn Around Time

Closed Issue Details- 16Documentation 8Funding 7Communication 1

Open Issue detailsCredit 8EOT 2

Avg. TAT: 2.81 days

Red Alert : Details

Closed Cases-Trend

(N)

(N)

(N)

(N)

(N)

(N)

(N)

(N)

(N)

(N)

(N)

(N)


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21.7% 24.6%

45.8% 41.5%

32.5% 33.8%

2006 2007

Promoter

Passive

Detractor

10.8% 9.2%

NPS Investor Results

2008 NPS Customer “SWAT” Team

22.3% 14.3%

32.0% 39.6%

45.6% 46.1%

2006 2007

Promoter

Passive

Detractor

23 % 32 %

Focus areas:Communication/relationship Fred

Debi Chris Tom *

Syndication process Scott SueJohn*

Market intelligence John Melanie

John Steve*

People Craig JenniferKim*

Internal Survey Swat Teams

NPS Customer Results

Focus areas:

Operational effectiveness Dan Kim Sally*

Investor relationship KarimDan Ken*

•Creativity •Effectiveness•Know customer needs•Other

•Documentation•Communication•Transparency•Post deal process•Cycle times

• Bidding process• Understanding investor

needs/strike-zone• Integrity• IT• Feedback• Response time• Documentation

External Survey Swat Teams

•Knowledge•Training

* SLT champions


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21.4

days

4.7day

sAug ‘07 Dec ‘07

-4.6X3Delivering results

‘07 Fleet Volume+30% Vs OP

• Slow• Too many handoffs• NPS = 5 (detractor)

1NPS feedback

• Cross-functional team work-out + SLTs• 90 days advance alert• Closing specialists

2 LEAN event

Driving Growth – cycle timeMexico – fleet, vehicle lease renewals

Driving Customer Centric Culture


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“Culture”

• Say “customer” more

•Define your businesses framework for “Listenand Act”

Communicate “Customer”

Framework

Shift Focus

Verbatims • Broadly across the organization

•Segment more, survey less…, from score to action

Implementing Cultural Changes

Push down in the organization


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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


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= The Way we Work

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

NPS

(Loyalty)

Roadmap


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Roadmap

Leadership Engagement

Enable cross-functional engagement with senior leadership team

Make loyalty part of the growth council

Regular operating and reporting rhythm

Identify top 3-5 growth opportunities

Loyalty learning from NPS VOC

Identify champions to drive the growth opportunities

Define strategies for leveraging Promoters and converting Passives

Lean workouts for process issues to recover Detractors

Launch communications plan

Top 3-5 Opportunities

Actions


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Roadmap

Communicate

Internally:

NPS customer success stories

Proven results

Customers:

What we heard from you

Actions we are taking to improve

Shorter surveys & more responses

More open-ended feedback

Engage SLT in the follow up process

Consistent across all P&Ls

Refine the Methodology

Drive Strategy

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


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Key success factors1. Leadership team support … don’t start without it

2. Know your business challenges and what NPS should deliver

3. Determine owners, report out processes, …all operating mechanisms

4. Determine methods that work in your market – Target high response rates

5. Relish the low scores

6. Weed out Legacy surveys buried within your business

7. Questionnaire comes at the end ... Once you know what you want to know … to do what

8. Use Change Acceleration Process (CAP) tools … This is Cultural change


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The ultimate in customer loyalty…


04/20/23

Documents

GE Capital Solutions