Customer Loyalty and Employee Engagement
Best Practices
The Net Promoter System on a Napkin
Jan 25th
Therefore, since brevity is the soul of wit,
And tediousness the limbs and outward flourishes,
I will be brief- William Shakespeare, Hamlet
If brevity is the soul of wit, then simplicity is the soul of inspiring others. It has been my experience that creating a customer-centric revolution within an organization requires the ability to convey your vision as simply as possible. To that end, I thought it would be a fun exercise to attempt to explain the Net Promoter System on a single napkin.
The end result of this exercise is posted above. Obviously, this illustration is overly simplistic, leaves out some key concepts, and is limited by my poor artistic ability. With all of those caveats, I still found this to be an incredibly worthwhile exercise. The next time you have a complex idea that you must communicate to a broad group, try drawing it out on a napkin first. The limited space will force you to ruthlessly edit out the fluff to let the essence of your idea shine through.
Net Promoter: Are You Playing Not to Lose?
Jan 16th
Playing Not to Lose is a pejorative used in sports to describe a coach, athlete or team who is so paralyzed by the fear of losing that they stop trying to win. All of their attention is focused on avoiding mistakes, causing them to miss opportunities to put points on the board towards a victory.
In my opinion, many companies are also guilty of Playing Not to Lose – by focusing their Net Promoter program exclusively on minimizing Detractors.
Don’t get me wrong – reducing Detractors is vitally important work. After all, having fewer Detractors than Promoters is at the heart of the Net Promoter Score metric.
But if the end goal of your Net Promoter program is simply to avoid Detractors, you don’t have a loyalty program – you have a complaint department. To take full advantage of the Net Promoter growth engine, you must focus on amassing an army of Promoters and then – here’s the important part – energize those Promoters towards taking actions that benefit both themselves and your company.
The following list, while far from exhaustive, contains four ways you can transform your Net Promoter program by playing to win.
Include Promoters in your Close-the-Loop Process
“Closing the Loop” refers to the two-step process of sharing a customer’s feedback with the employee(s) responsible for the experience, and talking directly to the customer to take appropriate action on the feedback provided.
Many companies using the Net Promoter system have a Closed Loop process in place for responding to feedback from Detractors – a vitally important activity. But few companies regularly and systematically close the loop with their Promoters.
Closing the loop with Promoters gives you the opportunity to thank them for their loyalty. No one likes to feel taken for granted, not even your raving fans. Let your Promoters know that you appreciate their feedback and their business. Ask questions to find out what you could be doing to make them even more loyal. Build rapport with your most important customers – your Promoters.
Extending your Closed Loop to include Promoters also has positive benefits on employee engagement. It allows your employees to hear praise, not just complaints. When employees hear first-hand how they have made a positive impact on a customer’s experience with your company, the end result is a more engaged and loyal staff.
Special Benefits for Promoters
American Express (a company of which I am a Promoter) has an advertising campaign that centers around the slogan “Membership Has Its Privileges”. The campaign is effective because it quickly conveys Amex’s value proposition– get an Amex card, and you too can get exclusive perks not available to the general public.
Likewise, being a Promoter of your company should come with privileges. Promoters are customers who engage in long-term economically positive behavior, and as such, are your most valuable customers. Reward them as such.
There are many ways that you can reward your Promoters – exclusive offers, opportunities to participate in focus groups, or simply a hand-written “Thank You” card are all ways that you can help your Promoters know that you appreciate them.
Spark Referrals
By very definition, your Promoters are customers who are extremely likely to recommend you to a friend or colleague. Yet many companies are often hesitant to ask their Promoters to do exactly that – refer new business.
There is no shame in encouraging Promoters to tell others about your company. Platforms like Extole and Amplifinity give your Promoters the tools to share their passion for your company with their friends and colleagues, and allow you to reward your Promoters for referring business. That’s a win-win situation.
Promoter-focused Analytics
Many companies incorporate text analytics and statistical analysis into their Net Promoter program to unlock the information hidden within their customer feedback.
These tools are often used to identify opportunities for improvement – but they can also be used just as effectively to find ways to increase engagement amongst your Promoters. What type of language do your Promoters use to describe your company? What attributes do your Promoters tell you are Critical to Quality? What do your Promoters value?
By understanding the underlying data, you can prioritize actions to further expand the love that your Promoters already have for your company.
The companies that are truly “winning” at Customer Loyalty – companies like Apple, Zappos, and USAA – aren’t simply trying to minimize Detractors. World-class companies are intentional about amassing and energizing an army of Promoters.
Accounting for Customer Experience
Jan 11th
A recent report by the Temkin Group found that only 17% of respondents believed that the executives at their company regularly prioritize long-term customer loyalty over short-term financial results. (Full report available here)
There are plenty of reasons why companies get stuck in short-term thinking, including competing priorities, pressure from investors to deliver quarterly results, and misaligned compensation plans. But I believe that much of the blame for under-investment in customer loyalty lies squarely on us – Customer Experience leaders – and stems from a lack of Finance and Accounting knowledge within our field.
Most Customer Experience professionals connect with their work on an emotional level. Since we are all customers ourselves, it is very easy to internalize the customer experience mission and make it personal. We aren’t just punching a clock – we are helping to rid the world of sub-standard customer service.
We spend much of our time in a bubble with like-minded souls – going to Customer Loyalty conferences, retweeting articles about Zappos, reading books about Nordstrom, and networking with people who eat, sleep, and breathe customer experience.
This emotional attachment to the mission of customer experience serves us well when it is time to inspire employees, transform cultures, and win customers. But it does us no favors in the board room unless it is balanced with the ability to articulate the value of customer loyalty in terms of cold hard cash.
Too often, customer experience initiatives are pitched on a “mom and apple pie” platform. The business case (if you can even call it that) consists of a Seth Godin quote, an infographic illustrating the cliché about dissatisfied customers telling 10 people, and a screenshot of someone trashing your brand on Twitter. Undoubtedly, the whole thing falls apart as soon as someone asks to see the underlying financials.
Likewise, well meaning Customer Experience leaders find themselves unable to prevent the installation of Bad Profits because they show up to the meeting armed with anecdotes, not spreadsheets.
It is not uncommon to hear Customer Experience professionals at networking events ask questions like:
- “How can I get my CEO/COO/CFO to understand the importance of our customer experience initiatives?”
- “How can I present an argument against short-sighted thinking like outsourcing, nuisance fees, and other bad profits?”
- “Why does my program budget keep getting slashed?”
To Customer Experience leaders who are currently struggling with these issues, I’d highly advise that you put down your tattered copy of Raving Fans and start reacquainting yourself with the dark arts of Finance and Accounting. Here are some great free resources from MIT’s Sloan School of Management to get you started:
Introduction to Financial and Managerial Accounting
Economic Analysis for Business Decisions
As you start to learn to articulate the business case for customer loyalty in financial terms, you might just discover that you and your CFO were actually on the same page the whole time – you just needed to learn to speak their language.
Elements of a Successful Net Promoter Survey Invitation
Jun 16th
One of the keys to success for your Net Promoter Score program is generating a high response rate. Unlike many other customer feedback frameworks, Net Promoter is designed to emulate a census, with target response rates of 50% of more.
The are many factors that contribute to your overall response rate, one of which is the execution of your survey invitation. Many new NPS practitioners don’t know where to start when creating a survey invitation. The chart below lists some of the factors that I have used in my survey invitations to generate response rates of up to 68%.
Click on the image to enlarge
Once your Net Promoter program evolves, you will no doubt develop your own best practices that work for your particular business and customer type. This chart is intended to give you a place to start.
How Marriott made me a rabid Promoter for the price of a bottle of water
May 11th
I am, as they say in customer loyalty circles, a Promoter of the Marriott chain of hotels.
Last year alone I spent over 60 nights in Marriott hotels, enough to earn my gold status for the next two years. I’ve referred countless friends and colleagues to various Marriott locations. I even set up a corporate rate for Volusion, which has resulted in well over 100 additional nights. Most hotel chains would love to have a customer like me – and the truth is that Marriott won my lifetime loyalty for the price of a bottle of water.
You see, I wasn’t always a one-hotel chain guy. I used to be equally loyal to three different chains. One night I was staying at a Courtyard by Marriott that I had stayed at twice before. I have a regular routine that I follow – shortly after checking in, I will go to the closest store and pick up a couple bottles of water (depending on how long I am staying) to bring back to the room. This trip was no different.
However, when I returned to my room, I discovered that the room I was in did not have a mini-fridge. It wasn’t that big of a deal, and I had all but forgotten about it until I received Marriott’s post-stay customer survey.
I filled out the survey as I normally did – Marriott routinely earns high marks from me. The last question of the survey asked what they could have done to make my stay more enjoyable. I put a short comment about how I was bummed at the lack of mini-fridge because I like to keep some water in the room.
The next day, I received the following email from the General Manager of the property:
Thanks so much for taking the time to complete our survey regarding your recent stay – we appreciate your feedback. I am glad to see that you enjoyed your stay and I just wanted to respond to your comment about not having a fridge in the room. We have about 24 rooms that do have refrigerators (I see that you had one on your stay before this one) but if one of those rooms is not available, just ask us for one and we will be happy to put one in your room. We value all of our guests, especially our rewards members and want to do everything we can to ensure we provide a great room and a high level of service. I hope the next time you are in town, you will stay with us again and I will ensure you have a fridge in your room.
I was suitably impressed. However, I was really blown away the next time I stayed at that same location. During check-in the desk agent informed me that they had ensured that I had a room with a mini-fridge in it. When I arrived in my room there was a bottle of water already waiting for me with a hand written note from the hotel manager.
One of the most important components of any customer feedback program is the final step – closing the loop. It’s where you let the customer know that you have heard and understood the feedback that they provided. This Marriott GM performed one of the most effective close-the-loop activities I’ve ever seen, and all it took was a simple survey, some basic CRM functionality, and 10 minutes of the manager’s time.
Whenever someone asks about the return on investment for Customer Feedback programs, I always cite this example. The tangible benefit to Marriott has been over 200 nights (around $26,000.00) from me, my company and people I referred. Not too shabby for a $2.00 bottle of water.

