Net Promoter Cannot Score Without Employee Involvement

It's nice to hear customers say they'd recommend you to others, but it doesn’t mean they're any more engaged with you.


If your organization is one of the many employing Net Promoter Score (NPS) as an indicator of customer satisfaction, you’ve taken a step toward developing stronger customer relationships—and you still have some ground to cover.


NPS is based on the idea that by learning how likely customers are to recommend your company, you can segment them into “Promoters” (they really like you), “Passives” (they sort of like you) and “Detractors” (they don’t like you).


Understanding these segments allows you to categorize the positive and negative outcomes and determine ways to either replicate or correct them. It’s valuable only when you use this insight to change what you do, to create better outcomes in the future.


Even the Net Promoter Community cautions that “simply measuring your NPS does not lead to success. Companies must follow an associated discipline to actually drive improvements in customer loyalty and enable profitable growth.”


That “associated discipline” means making sure you are offering the right value at the right time to the right segments of customers.


The scores you get are a lot like a political poll. It’s valuable to understand current behaviors of humans in order to predict their future behaviors; however, like voters your customers’ situations and corresponding behaviors can change. What people say they'll do—and what they actually do—can be completely different things.


In other words, will they actually go vote—and vote for you—when they need what you provide, just because they said they would some time ago?


Communicating value is best done by employees who understand your brand message and are connected to customers who've determined it's time to buy. Educate employees on your brand message as the foundation for strengthening their every interaction with customers. Tell them what the customer-satisfaction data means to them and how it impacts their roles.


By making a positive difference in your customers’ lives, you will improve revenues. That kind of impact comes through the interactions your employees have with customers. A smart Net Promoter company develops “promoters” from within—at the point where employees can actually improve the lives of customers.


Dell has been using NPS for years, having gained sponsorship from the top: Michael Dell holds quarterly meetings with business areas to understand how they consistently satisfy customers. This is the corporate culture he’s created for Dell, knowing the culture ultimately becomes the brand. (True for every organization, by the way.)


The company has grown a vast champion network of employees who are aligned to the brand message, “tendering” that message—just like they would currency—to colleagues and customers every chance they get. Let's call those employees brandtenders.


Dell believes that in order to create engaged customers, it is crucial to help employees understand the difference they are making. Research firm The Temkin Group summed up a study of customer satisfaction and NPS this way: “Relationship trumps product."


Regardless of the measurement devices you use, here's how to get employees more involved in building sronger relationships with customers:


1. Help employees understand and become interested in your brand message—your  ‘story'. (Employees become more engaged when they understand your company’s core values.)


2. Train employees to communicate the brand message consistently, to each other and to customers. (Your internal culture ultimately becomes your external brand.)


3. Allow employees the freedom to represent the brand in their own styles. (You hired them for their strong individual brands, right?)


These actions will do more for your organization than give you higher numbers on a scorecard. They'll make a tangible, lasting difference for your customers, employees and company.

Would You Do Business with Roger Sterling?

Are you a small firm with no sales team, considering hiring someone to acquire new business?

Don’t. Until you consider this: You might be surrounded by business developers, disguised as employees.

Your instinct says, “Employees weren’t hired to sell,” or “Employees don’t have the expertise to sell.”

Sure, you can spend time and money hiring a go-getter who is smooth on the phone and keeps a positive attitude despite hearing “no” 20 times a day. But when she finds someone interested in your services, can she represent your culture—your brand—or is it apparent to prospects that she’s merely shepherding them through your sales process?

Clients today don’t need Roger Sterling from Mad Men. They need people who understand their needs and can make things happen. They need to see value, right out of the gate.

You’ve invested a lot to recruit, hire and cultivate strong people. Before throwing one dollar toward hiring additional personnel for the sole purpose of acquisition, consider leveraging the marketing power lying dormant amongst your ranks.

Employees have countless “Moments of Impression” with clients and prospects. What are they? How do you maximize each and every one, to drive leads, referrals and growth within existing clients?

Employees are the only ones who can truly represent your culture—your brand—by developing the relationships that become the strongest link from your brand to potential new clients.

If you didn’t hire employees to help you build the brand, what did you hire them for?

Do You Have Engaged Workgroups?

Can you "strongly agree" with the following eight questions?

1. The leadership in our organization can explicitly state the value our company brings to customers, in one or two sentences.

2. The leadership in our organization proactively helps employees understand the value we bring to customers.

3. Employees in our organization can explicitly state the value we bring to customers, in one or two sentences.

4. Employees in our organization seem aligned to the company's core values (what we stand for).

5. Employees in our organization are empowered to share with customers what value we bring, in their own words and style.

6. Overall, employees in our organization do a good job of communicating what value we provide, with each other and with customers.

7. In our organization, Marketing and HR work together to ensure the value we provide is communicated consistently across all possible channels of customer contact.

8. Our organization does a good job of measuring employee engagement (alignment, culture, etc.).

If you can "strongly agree," you're on your way to connecting your company's values with the values of your customers. A strong culture is the cornerstone of a strong brand.

If you can't say "yes!" to them all, you have some work to do. Here's how to start developing engaged workgroups:

Help employees understand your brand message. And make it simple, it's your "story."

Give employees the tools to communicate the message effectively and consistently.

Show employees you trust them to represent your brand in the marketplace. Heck, Zappo's lets employees step into a video booth to shoot their own commercials promoting cool new products they endorse!

You can try to influence what your brand becomes through advertising, design and marketing, But it's ultimately decided by those who interact with your culture.

'None of us stands out.'

When I opened a trade magazine this morning, I was reminded of getting ready for high school while my dad dressed for his workday at IBM: white shirt, blue tie, dark suit. Everyday the same.

There, in the middle of this magazine, was a two-page ad for a large, reputable printing company. It featured the company's employees standing in its production facility, smiling at the camera.

Cool, right? Could have been. Except that every single one of them was dressed in the exact same blue shirt branded with the company logo. Over 100 men and women, all looking the same. The headline might as well have read, "Do business with us, because none of us stands out."

Why didn't someone in leadership think to say, "Hey, everyone, we're taking a company snapshot tomorrow and we want to feature YOU—the people who make us the company we are. Show some personality and wear your favorite shirt. Better still, why not your favorite hat!"

I bet the customers of this company care more about who is in the shirt than they do about what's on the shirt. Those customers have come to know the company and its brand through those people. They might even be able to look through the crowd and pick out the people they've dined with, fished with, bought from—if only they could tell one from another!

While an organization's brand image might have been concocted by smart executives and marketers, employees are the only ones that can bring your brand to life, by sharing its values with other people.

Even my dad got the chance to dress more individually once IBM learned that people built relationships with other people, not ties.

Walgreen's Strategy Paying Off

In my last post, I noted that Walgreen's has embarked on the people-based strategy of training pharmacists to spend more time helping patients with chronic illnesses.

Building relationships with customers, to proactively drive customer engagement vs. delivering reactive customer service, leads to strong and sustainable growth, at least in my book (literally).

A strategy like this sounds good in the boardroom and looks good on paper, but means nothing if it doesn't drive results, right?

Early results are in, and they couldn't be better. Here's what The Wall Street Journal just reported this week:

"Walgreen Co. said June same-store sales rose 2 percent, a reversal from two straight months of decline, as discretionary sales in the front end of the store improved. Overall, sales jumped 8.4 percent, to $5.67 billion" for the company."

This is a sound example of how employees who are aligned with your brand can create real relationships with customers, based on shared values. By improving each "moment of impression" a customer has with a pharmacist--or any employee in the Walgreen's organization--the ripple effect spurs growth in the different products and services a brand offers.

I will keep you updated on AmEx and Comcast, two other companies I applauded in my last post for installing people-centric strategies for growth.

Moving From Customer Service to Customer Relationships: The Way to Grow.

Walgreen's is training pharmacists to spend more time helping patients with chronic illnesses.

American Express is expanding a program aimed at getting agents to build better relationships with customers.

Comcast is putting call-center reps through new training and instructing supervisors to coach their agents more.

These are Brandtenders in action: moving from "customer service" to "customer engagement."



Over 25% of the 1,400-plus companies surveyed by Accenture said that customer service is the first area to get increased funding as the economy recovers, according to The Wall Street Journal. More importantly, these companies are changing how they perceive and approach customer service.

Customer service is reactive and transactional: taking customer orders and dealing with customer frustrations. The Brandtender approach is proactive, linking employees who are interested in the brand they work for—because of their company's unique culture (the DNA of a brand)—with customers who value their relationships with those employees.

I've found that the most customer-satisfying brands in the world do three things:

1. Help employees understand and become interested in the brand. (Don't over-engineer the brand message, make it simple and allow employees to relay it to customers in their own style.)



2. Give employees the tools to communicate the brand message at every turn, making every moment of impression with customers a strong one. (They should know what to say and when, consistently and effectively.)



3. Trust employees to represent the brand in the marketplace. ("Empowerment" is an overused word. It's about trust. If you don't trust employees, they know it and won't trust your brand. And if your employees can't represent your brand, then who can?) 



The Wells Fargo Brand: 168,000 Employees

Wells Fargo’s “surprise announcement” of record first-quarter earnings wasn’t much of a revelation to those who’ve watched the bank imbed its brand into the market.

First-quarter net income reached a record $3 billion. And just think--some Wall Streeters suggested Chairman Dick Kovacevich step down after he hit mandatory retirement age (65) last October. They’re not complaining now. After all, he fashioned a brand that's thriving during this historic economic downtown. 

How?

Diligence in lending practices, surely. But, it took something that's been completely missed in evaluations of the bank’s success: 167,500 employees trained to act on a brand message that creates committed customers.

These employee-to-customer relationships built a customer base that buys multiple products from the bank, not just a mortgage or checking account. 

The bank makes it a priority that employees encourage customers to buy all their financial products through Wells Fargo. Kovacevich's goal: sell at least eight products to every customer.

"We want to earn 100 percent of our customers' business,” he said. “The more products customers have with Wells Fargo the better deal they get, the more loyal they are, and the longer they stay with the company. Eighty percent of our revenue growth comes from selling more products to existing customers."

This concept, “cross-selling," is tough because individual products are often sold through their own distribution channels in larger institutions. Kovacevich was a marketing pioneer, moving all products through all channels.

It’s paying off. 

The average American owns 16 financial products from eight institutions, putting the "cross-sell ratio" at two. Wells averages nearly six products per household, thanks to front-line associates and managers creating relationships during routine employee-customer encounters.

That respect is shared with customers during interactions. When you visit a branch, you may see employees wearing t-shirts emblazoned with “I work for the customer.” This thinking has provided big returns--in the form of deposits. 

Tellers and other employees on the front lines try to make personal connections with customers. They say customers’ names when speaking to them, for example. 

Wells Fargo is more connected to its customers than any major American financial institution, and its board of directors was wise to grant Kovacevich exemption from the mandatory retirement age.