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.
3 GE VHB 2008 Net Promoter Conf Jan 2008

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

4 GE VHB 2008 Net Promoter Conf Jan 2008

NPS @ GE
B2C & B2B

Practical business applications

P r o d u & P r c o t c e s s
5 GE VHB 2008 Net Promoter Conf Jan 2008

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
7 GE VHB 2008 Net Promoter Conf Jan 2008

Toolkit to drive growth

NPS
Validate

Listen
Diagnose & Fix

sure Mea

Growth

Customer Metrics

Ac t
Communicate

Lean

8 GE VHB 2008 Net Promoter Conf Jan 2008

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

11 GE VHB 2008 Net Promoter Conf Jan 2008

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

12 GE VHB 2008 Net Promoter Conf Jan 2008

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
15 GE VHB 2008 Net Promoter Conf Jan 2008

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!

16 GE VHB 2008 Net Promoter Conf Jan 2008

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

18 GE VHB 2008 Net Promoter Conf Jan 2008

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

19 GE VHB 2008 Net Promoter Conf Jan 2008

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
21 GE VHB 2008 Net Promoter Conf Jan 2008

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
22 GE VHB 2008 Net Promoter Conf Jan 2008

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
23 GE VHB 2008 Net Promoter Conf Jan 2008

Mobilizing sustainable growthCulture

Mobilizing Sustainable Growth

Growth requires Retooling the way we Think & Operate
Dollars

New Technical Thinking

Culture Change

NPS / LEAN

25 GE VHB 2008 Net Promoter Conf Jan 2008

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
26 GE VHB 2008 Net Promoter Conf Jan 2008

NPS / LEAN SIX SIGMA

Customer Loyalty Ignites Growth

27 GE VHB 2008 Net Promoter Conf Jan 2008

Questions

28 GE VHB 2008 Net Promoter Conf Jan 2008

29 GE VHB 2008 Net Promoter Conf Jan 2008