A Christmas Message to Our Customers

We’re coming to the end of another year and all in all, it’s been a good one for us here at Deep-Insight.

We are an Irish company – and proud of it – but our client base is international. Over the past 12 months, we have carried out customer and employee assessments in the UK, Netherlands, Poland and Australia as well as in our home market. That said, one thing that I have noticed in 2015 is a marked increase in activity from local companies. The Irish recovery is definitely under way.

NEW FACES

 

Jamie Jaggernauth

We’ve had a particularly busy year at Deep-Insight and as a consequence, there are a few new faces in the Cork office these days.

We’re delighted to welcome Jamie Jaggernauth, who is our latest addition to the Deep-Insight team.

Jamie hails from Trinidad and has worked in a variety of research roles in the Caribbean, UK and Ireland before joining Deep-Insight.

NEW CLIENTS

We also added a few new names to our client list during 2015, ranging from large well-established firms like the health insurer VitalityHealth in the UK to newer digital organisations like DoneDeal, which is Ireland’s biggest classifieds site (and which is part of the Norwegian-headquartered Schibsted Media Group).

In fact, DoneDeal celebrated its 10th birthday this year so a big happy birthday to John, Cathal, Kristian, Simon and the rest of the DoneDeal crew!

DEEP-INSIGHT’S OWN CUSTOMER ASSESSMENT

Earlier this month, we asked you what you thought of your relationship with us.

Now, I must admit I awaited these result with some trepidation. We think we deliver an excellent service to our clients but it’s always slightly scary waiting to hear what people ACTUALLY say about us and the benefits of working with Deep-Insight. It’s scary because we do take your feedback personally and it’s always a little nerve-wracking waiting for the results ton come through.

Last year, we had a Customer Relationship Quality (CRQ) score of 5.2 and a Net Promoter Score (NPS) of 17%. I was a little disappointed with those scores last year as they were down from the scores we received on our previous assessment and I felt that we could – and should – have done better.

A NPS of 17% is above average (more on average and good Net Promoter Scores here) but frankly it’s not that much above average. We had significantly higher scores in the past and we don’t see ourselves as a “slightly better than average” company. We used to be regarded by our clients as ‘Unique’ but in 2014 we dropped out of that zone. It’s a bit like a restaurant losing its Michelin Star – I was extremely keen to see if we could get back into the top bracket again this year.

So how did we do? How did you rate us?

2015 CLIENT FEEDBACK

 

This year, you gave us a Customer Relationship Quality (CRQ) score of 5.7 and a Net Promoter Score (NPS) of +37%.

I was a little stunned when the results came through as our NPS and CRQ scores had shot up dramatically. As many of you will be used to hearing me say at this stage, it’s quite a challenge to get your CRQ score to jump by more than 0.2 or your NPS to increase more than 10%. We had worked hard on a number of fronts over the past 12 months but the size of the improvement in scores still came as a surprise. So thank you for that vote of confidence in Deep-Insight – it really does mean a lot to us.

UniquenessThe other thing I’m particularly pleased with is the fact that we are back into the ‘Unique’ zone – that’s the light green box in the top right hand corner of the graphic. To be seen as unique, a company has to be able to provide a solution that truly solves its customers’ problems, as well as providing an excellent experience for that client. That’s something that only 10% of B2B companies achieve so it’s nice to be able to claim that accolade again.

There’s still plenty for us to work on. We’re currently analysing each and every verbatim to figure out exactly how to improve our service even further. We will be sharing these results with you as early as we can in the New Year.

LOOKING FORWARD TO 2016

So there it is. 2015 is nearly over but we have some exciting things planned for next year.

Over the past few months, Rose Murphy has been talking to most of you about what you like and dislike about our current product offering. The feedback you have given to Rose, as well as the various suggestions you have made in this recent client assessment, will help us improve what we do and how we do it.

But for the moment, allow me to say a big thank you to each and every one of you for supporting us throughout 2015.

On a personal note, I’d also like to say a big thanks to the following (in no particular order other than alphabetical): Brian, Frank, Grainne, Jamie, Mark, Mary, Peter, Pim, Rose, Yvonne as well as to the rest of the wider Deep-Insight team who have helped to deliver a fantastic service to you – our clients – over the past 12 months.

Have a very peaceful Christmas and I look forward to seeing you all in the New Year,

John

What is a ‘Good’ Employee Net Promoter Score?

Last year, I wrote a blog post entitled What is a ‘Good’ B2B Net Promoter Score? which turned out to be surprisingly popular. I’m guessing that was because there’s a lot of nonsense posted on the Internet about companies achieving a NPS (net promoter score) of +62% or even +78%, or about people being hugely disappointed because they only achieved a score of +25%.

Meanwhile, some of our own clients at Deep-Insight clients used to get upset when I would tell them that their NPS was only marginally positive or – ever worse – negative.

The two simple messages in that blog post were:

“Be careful about how you interpret NPS figures” and

“A Net Promoter Score of around +10% is the average for European B2B firms.”

In that blog, I was discussing NPS as a measure of customer advocacy but more and more, it is also becoming the de facto standard for measuring employee advocacy and employee engagement. So this blog will address the question: “What is a ‘Good’ Employee Net Promoter Score?”

Before I let you know what that magic number is, it’s worth digressing slightly to explain the basics of how NPS is calculated. If you’re already a net promoter aficionado, you can skip the box below.

HOW IS THE NET PROMOTER SCORE CALCULATED?

For the uninitiated, a company’s Employee Net Promoter Score (eNPS) is based on the answers its employees give to a single question: “On a scale of 0 to 10, how likely are you to recommend Company X to a friend or colleague?” Employees who score 9 or 10 are called ‘Promoters’. Those who score 7 or 8 are ‘Passives’ while any employee who gives a score of 6 or below is a ‘Detractor’. The actual eNPS calculation is:

Net Promoter Score = % of Promoters minus % of Detractors

Theoretically, companies can have a Net Promoter Score ranging from -100% to +100%.

So think about it. The only Promoters you have in your company are those employees who are prepared to give you a score of 9 or 10 out of 10. In the average American company (remember that the whole Net Promoter concept originated in the USA) that makes sense. Americans tend to score very positively when they are satisfied, so having a high cut-off point is appropriate. However, if you’ve grown up and live and work in a European country, you approach the Net Promoter question from a different cultural perspective.

Many – nay, most – Europeans regard 8/10 as a very good score. Some will argue that 9s or 10s are only handed out in exceptional circumstances. This is culturally ingrained into us Europeans through our schooling system and particularly through our university grading system, where score of 80% (8 out of 10) and higher are almost unheard of.

These cultural differences have to be taken into account when interpreting whether a particular Employee Net Promoter Score is ‘good’ or ‘bad’.

So what is the magic number?

We have been measuring NPS and eNPS since 2006, mainly for European and Australian companies, and the average Employee Net Promoter Score across all of our clients during that time has been a paltry -10%. Yes, that really is a negative sign before the 10.

Minus Ten Percent!

Put it another way: achieving a positive Employee Net Promoter Score is a solid achievement for most European firms, and only very rarely have we seen eNPS results in excess of +20%.

So there you have it. If your company, or department, has just received a negative eNPS in the latest employee survey, don’t feel too bad. You’re in good company!

 

To find out more about Deep-Insight’s employee assessments, click here.

* Net Promoter® and NPS® are registered trademarks and Net Promoter SystemSM and Net Promoter ScoreSM are trademarks of Bain & Company, Satmetrix Systems and Fred Reichheld

5 Generic Actions to Drive up your Relationship NPS Scores

We run B2B customer assessments for large corporate clients in the Netherlands and elsewhere. Very often I get asked questions like this after we deliver the customer feedback to senior management:

“OK, you’ve told us what our customers think of us, but what do we do about it now?”

“Tell us what we do in the next few weeks so that we don’t lose momentum.”

So here’s what I tell them:

1. BRIEF YOUR PEOPLE.

Typically, you need to brief at two levels and both are equally important:

– Executive Team. The senior executives in your organisation need to ‘own’ the overall results. If the customer feedback is negative or requires fundamental change, only the executive team can decide on the appropriate actions.

– Account Managers. These are the people who need to ‘own’ the results at account level. They are also the people you need to set up and run the account feedback sessions (see below).

Make sure to get the senior executives to read all the verbatim comments and see if their summary of the top issues agrees with the Deep-Insight analysis (they will understand the context better than we can). The most effective way of increasing Customer Relationship Quality (CRQ) and NPS scores is to have the programme driven by the executive team. Without the drive and passion at this level, the programme will fail.

2. DISCUSS THE RESULTS WITH YOUR CLIENTS.

Typically this happens in two stages:

– Stage 1. Within 2 weeks of the assessment results being delivered, you should get a general communication to all customers that you invited to give feedback. This should include a general ‘Thank You’ message for participating in the assessment (OK, not everybody completed it – our completion rates are typically 35-40% – but let’s not be mean!) as well as a message that their account manager will be in touch to arrange a feedback session to discuss the results (the overall results plus the specific results for their account)

– Stage 2. Within 8 weeks (or whatever target you set – but you must set a target), the account managers should have completed face-to-face meetings with all key customers. Ideally, they will have used that discussion to create a ‘Joint Action Plan’ setting out what both parties need to do, in order to address any issues unearthed in the assessment. Remember that the actions are on both sides – the account manager may need the client to change certain things as well.

3. FEED THE RESULTS INTO THE ANNUAL BONUS SCHEME.

If you haven’t done so already, think about incorporating the CRQ or NPS scores into account managers’ annual targets and bonus plans. If you have done so already, pay out the bonuses! This is probably the second most important driver of success in any customer experience programme. What gets measured and rewarded, gets done.

4. PLAN THE ACTIONS.

Again, do this at two levels:

– At corporate level. These are typically the key themes mentioned in the verbatim comments. Choose one or two big initiatives to work on during 2015. Keep it focused – any more than one or two initiatives will result in a dilution of effort.

– At client level. Each client will have its own specific set of issues including some ‘quick wins’ that can be addressed immediately.

5. MOST IMPORTANT, MONITOR PROGRESS.

If the results are poor, consider an interim assessment in 6 months (we call this a ‘Healthcheck’) but definitely repeat the feedback assessment after 12 months. If you don’t do this, you won’t know if you have achieved success.

None of the above five items are rocket science, but it strikes me as odd that some clients fail to take these actions. I know from 10 years of delivering Deep-Insight customer feedback to clients in the UK and the Netherlands, I know that these actions will result in better customer experience and improved feedback scores.