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2010 Executive Tidbits
IBM, P&G, General Mills, McKinsey, and McDonald's have the best manager training programs according to Fortune 2009. |
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Check out Keith's other site:
Virtual Writing Coach |
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The
Executive Connection SM
a publication of The Virtual Executive
Coach SM
"Vision + Accountability = Success!"
www.virtualexecutivecoach.com
July, 2008
In This Issue:
1. Preview
2. Executive Summary
3. Net Promoter Score (NPS)
4. Helpful Hints
1. Preview
The Executive Connection explores the creative and analytical
process of business development, team-building, and executive
development. We are an interactive community of executives
and small business owners who desire to network with like-minded
high-performance executives to enhance our knowledge,
skills, and aptitudes in the competitive business world.
Published monthly, the Newsletter offers coaching suggestions
around the topics of: business development, financing,
marketing, networking, incorporations, mergers, human
resources, governmental regulations, and tax laws. Topics
are presented from the perspective of Keith Barton and
represent only his ideas on creating and running your
business.
Because we are an interactive community of executives
and business owners, other viewpoints are welcomed and
may be printed in future monthly newsletters with permission
from Keith Barton.
2. Executive Summary
July, 2008
Dear Executive Connection Subscriber,
This month's newsletter features: Net Promoter Score (NPS)
3. Net Promoter Score (NPS)*
It's not a new TV or cable network. Small businesses are turning to customer satisfaction and rewarding
employees for their NPS scores. It's s single number that can fluctuate depending on your interactions
with customers. NPS was first introduced by Fred Reichheld, a partner at Boston consulting firm, Bain &
Co. According to Bain's research a company's promoters are responsible for 80% or more of new customer
referrals, which is key to increasing revenue.
Here's how NPS works. First, ask your customers to rate you on 0-10 scale on the question: "How likely
is it that you would recommend this company to a friend or colleague?" Then sort the responses into
three groups: promoters (9-10), passives (7-8), and detractors (0-6). The percentage of promoters minus
detractors equals your score; thus, a company with 75% promoters and 15% detractors would have an NPS
of 60.
According to Reichheld the average U.S. company has an NPS of 15. Scores above 50 are really great.
Rewarding employees based on their NPS scores creates an incentive for better customer service which is
really the edge in consumer-driven industries such as tanning salons, resort and hotel stays, food
service, phone answering services and messaging systems, tutoring-just about any service directed
towards the customer with no middle man. Ken Gibson, Learning Rx founder that helps clients improve
their memory, linked NPS scores to bonuses; those staff who received a score of 90 or better received
a bonus of 20% of their annual salary. Those with scores 70-90 received a 10% bonus, and those less
than 70, nothing.
Software giant Intuit also uses NPS by getting their detractors to join forums to get more out of their
software by speaking directly with the software designers rather than a "customer service" specialist
in another country. NPS creates a demand for networking results by customers providing marketing for
the company. Hotel.com has done this for years using a five star rating system for hotel stays in
different service areas: room, restaurant, lounge, pool, housekeeping, gym, etc. Movies have been
rated that influence consumer demand. Just about any product or service can be rated; the key is to
encourage your end users (the consumer) to rate the service without inducements or bias.
Your highest customer referral sources can also be rewarded with company merchandise such as t-shirts,
software, name recognition on websites and blogs. Betsy Weber, is chief evangelist for Techsmith based
in Okemos, Michigan, which makes Camtasia Studio, a kind of VCR for your PC capable of recording a
sequence of screen shots. Tangerine Wellness offers weight-loss programs to employees of big
corporations. For increased referrals from Rockford, another company, Tangerine pitches prospects on
Rockford's ATV and motor home business. There are no monetary incentives, only cross-referrals.
The NPS also borrows from a concept used several years ago called "Service Marketing" whereby the
service is more important than the product. Call centers can be laborious and impersonal. If a
knowledgeable PC engineer were to answer your call (rather than a contract person who knows little
about the product), then customers would be more willing to rate the help desk more positively.
Knowledge plus service = consumer satisfaction and increased referrals. The link is even more direct
in service industries where the consumer receives a direct benefit-e.g. salons, health clubs, hotels,
ticketing, baggage, personal assistants. It's not who you know but who you please.
*From Justin Martin's article in Fortune Small Business, "Get Customers to Sell for You".
Helpful Hints:
- Compute your own NPS score and tie to employee incentives and see if revenues
increase over the next year.
- Use employee questionnaires online such as "Survey Monkey" and post results on
your website.
- Ask customers if they would be willing to participate in the one NPS question
and give them a store credit or online credit.
SUBSCRIPTION INFORMATION
The Executive Connection SM is a free publication.
If you want to continue to receive this Newsletter, you
can SUBSCRIBE
by clicking here or by sending a blank email message
to keith_barton@att.net
with the word SUBSCRIBE in the subject line.
To
UNSUBSCRIBE click here or send a message to keith_barton@att.net
with the word UNSUBSCRIBE in the subject line.
Be assured your name and email address are confidential.
We do not sell, rent or share our mailing list with anyone.
Contact Information:
Keith Barton, Ph.D.
Voice: 281-583-5005
Fax: 281-583-5008
Web: http://www.virtualexecutivecoach.com
E-Mail:
keith_barton@att.net
(c) Copyright 2008, Virtual Executive Coach SM
and A. Keith Barton, Ph.D.
All rights reserved.
Distribution Rights:
The Executive Connection SM is copyrighted,
but you may retransmit or distribute it to whomever you
wish as long as not a single word is changed, added, or
deleted, including the contact information. However, you
may not copy it to a web site.
Republication of The Executive Connection SM
in paper media is encouraged and permitted by individuals,
organizations and associations, as long as the issue is
reprinted in its entirety, without change, and includes
the contact information.
With advance permission, we are happy to edit an issue
to fit your space requirements. Republication also is
encouraged under other circumstances. However, the advance
permission of
A. Keith Barton, Ph.D. must be obtained in the event that
changes in the text are desired.
The Executive Connection SM
Mission:
The Executive Connection SM is dedicated to
helping first-time business owners and executives to recognize
resistance to change, while they create and manage their
own businesses. My goal is to help you transform your
vision into a successful business venture with the addition
of accountability structures and silent partner.
The Executive Connection SM is a publication
of The Virtual Executive Coach SM and Keith
Barton, Ph.D.
We would like The Executive Connection SM to
be as interactive as possible. If you have feedback, comments,
topics you would like addressed, or can suggest additional
resources to benefit us all, please email us at any time.
Send your e-mail to
keith_barton@att.net
.
Please forward this issue to anyone you think would find
The Executive Connection SM interesting and
beneficial. Your recommendation helps us keep growing,
and ensures an excellent exchange of information and techniques.
Archives:
You can read previous issues of The Executive Connection
SM in our archive section.
About Keith Barton, Ph.D
Dr. Barton received his Ph.D. in 1972 from the University
of Texas at Austin and has been a practicing therapist
for over thirty years. He is a graduate of MentorCoach
and is accepting new clients.
He has been an adjunct professor at the University of
South Carolina, consultant to Fortune 500 companies in
executive development, founded and managed Texas Community
Living Ventures, Inc., in 1986 for providing group home
services to persons with mental retardation. Keith founded
and has been running a clinical practice in Northwest Houston since 1990.
He writes part-time with the goal of completing one novel
a year. His desire to coach others derives from his passionate
interest in helping others become attuned to their creative
powers of storytelling.
Dr. Barton has training in coaching, cognitive and family
therapy and health psychology. He has published articles,
made presentations and conducted workshops about:
Small Business Development
Employee Wellness Programs
Anxiety and achievement
Stress management
Self-esteem
Communication skills
Leadership styles
Core values in the workplace
Executive Development
High-performance groups
Physician support groups
Writer support groups
© 2010
The Virtual Executive Coach SM
and Keith Barton.
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