Collective Incentives Offer Better Results

Collective Incentives Offer Better Results

NPS BASICS AND BEYOND
Collective Incentives Offer Better Results
Employee Incentives for NPS

Collective Incentives Offer
Better Results

key takeaway

Employee incentives for NPS often backfire; employees find ways to bias the system in their favor. Group incentives based on key operational metrics work far better.

Best Practice

You’ve most likely experienced the negative consequences of measuring individuals on NPS, or indeed any customer experience metric. One high-profile area where the phenomenon is generalized is automobile sales. Car companies often provide individual bonuses based on the NPS numbers of sales people, even where the sales people work for franchisees. The result is that car buyers are handed or emailed a survey accompanied by a clear message, “Please phone me before filling in the survey if you can’t give me a 10.” Manipulations like this result in executives ignoring the very scores they purport to be using to drive excellence.

The cheating can be harder to detect in some cases. Measuring individual contact center agents on customer satisfaction scores, for example, can result in agents manipulating scores.

While incentive systems that provide rewards on an individual basis result in cheating, this is not the case for collective incentives. At the highest level, we believe large company leadership teams can and should be measured on double-blind NPS benchmark trends relative to their main competitors. Cascading that sort of metric also helps position the enemy correctly: the enemy is your top competitor, not some poor individual customer filling out a survey.

If you can’t get competitive comparisons, we suggest a different approach. Use your brand-level NPS research to determine which operational factors have the highest impact on NPS. Provide team incentives to improve the top three to five operational metrics.

go beyond basic nps governance and accountability

A strong governance and accountability approach can help carry to your program from its beginning to more advanced operations and impact. Be sure your governance team understands that its remit includes continuing engagement with an evolving program over the long haul. Leverage your team to help navigate the challenges of building the data assets you’ll need to practically align your CX efforts to company strategy and outcomes. To get there, download our guide, take our comprehensive training course, or read about the future of NPS.

REPORT

The Complete Guide to NPS Basics and Beyond

TRAINING

Leading an Outcome- Oriented
CX Program

REPORT

The New NPS
Manifesto

REPORT

The Complete Guide to NPS Basics and Beyond

TRAINING

Leading an Outcome- Oriented
CX Program

REPORT

The New NPS Manifesto

ABOUT OCX COGNITION

OCX Cognition delivers the future of NPS. We ensure customer experience success by combining technology and data science with programmatic consulting. In our Insights section, we present a comprehensive and evolving collection of resources based on our research and expertise, collected for CX leaders committed to delivering business outcomes.

Collective Incentives Offer Better Results

Successful NPS Team Leaders Fulfill These Roles

NPS BASICS AND BEYOND
Successful NPS Team Leaders Fulfill These Roles
NPS Program Roles and Responsibilities

Successful NPS Team Leaders
Fulfill These Roles

key takeaway

The role of the NPS program leader is to make it easy for all employees to understand customer needs and what is being done to satisfy them.

Best Practice

Long-term success in NPS program leadership means CX must be seen as a way of achieving a competitive advantage. This requires more external focus than we usually see.

Here is what we have seen as the defined roles and responsibilities of the more successful corporate NPS program leaders:

 

  • The NPS program leader should form and chair a company “CX leadership council” that includes the senior CX person from each major business and function. That’s because customer feedback will often reveal improvement requirements that no single department can address on their own. The council has to have the funding and skills necessary to drive a small number of cross-business improvement projects each year.
  • Working together on improvements requires common understanding of relevant processes and measurements. The CX leadership council should agree and fund basic CX training that all employees, even the most senior, should be required to take. (Our own All Hands On Deck online course is an example of such training.) Common understanding of what different terminology means and what measurement and improvement processes work matters a lot. 
  • Define the measurement and reporting standards across the company. By this we mean the basic core measurements. An example would be the standardization of the Net Promoter Score as the primary brand-level customer metrics. Reporting will sometimes include progress on purely operational metrics where it has been demonstrated that they are critical to customers and in need of improvement. It is of course entirely appropriate that individual departments may have additional CX metrics of their own. For example, a support organization may decide to standardize on the Customer Effort Score as a measure of their ability to resolve customer problems. 
  • Communicate strategy, initiatives and progress on a regular basis. This needs to be done both internally and externally, for example in quarterly financial reports. The work includes making it easy for senior leaders to talk about customer experience in a meaningful way. This means the CX leader should supply each leader with relevant speaking points about their own area of responsibility.

go beyond basic nps governance and accountability

A strong governance and accountability approach can help carry to your program from its beginning to more advanced operations and impact. Be sure your governance team understands that its remit includes continuing engagement with an evolving program over the long haul. Leverage your team to help navigate the challenges of building the data assets you’ll need to practically align your CX efforts to company strategy and outcomes. To get there, download our guide, take our comprehensive training course, or read about the future of NPS.

REPORT

The Complete Guide to NPS Basics and Beyond

TRAINING

Leading an Outcome- Oriented
CX Program

REPORT

The New NPS
Manifesto

REPORT

The Complete Guide to NPS Basics and Beyond

TRAINING

Leading an Outcome- Oriented
CX Program

REPORT

The New NPS Manifesto

ABOUT OCX COGNITION

OCX Cognition delivers the future of NPS. We ensure customer experience success by combining technology and data science with programmatic consulting. In our Insights section, we present a comprehensive and evolving collection of resources based on our research and expertise, collected for CX leaders committed to delivering business outcomes.

Collective Incentives Offer Better Results

Top Five Skills for NPS Team Success

NPS BASICS AND BEYOND
Top Five Skills for NPS Team Success
NPS Team Skills

Top Five Skills for
NPS Team Success

key takeaway

Many NPS team members have some but not all of the skills needed to drive CX success for your company. Expand your team skill set to include these five must-haves.

Best Practice

Our research shows that most customer experience programs – up to 95% — fail to make a meaningful difference in terms of business growth or financial outcomes. Indeed, the main output of many teams is sets of reports and scorecards. It’s not enough.

Here are the top five skills we believe are necessary for strategic alignment and financial success:

  1. Analytical skills. Consider this a core competency. We observe that many NPS team members lack basic knowledge of statistics. We recommend formal training, either in the classroom or online. Analytics go well beyond surveys. Teams need to be able to understand the relationships between trends in survey, operational, and financial data.

     

  2. Financial acumen. The overall CX leader, at the very least, needs to have reasonably deep financial skills. They need to be able to confidently predict the relationship between operational performance, CX metric performance, and the financial results they want to improve.
  3. Collaborative Reputation. Customer experience team members need to be able to drive improvement work that crosses organizational boundaries. In B2B, for example, we believe your very largest customers should each have their own improvement plan, managed by a CX team member.
  4. Persuasive Nature. NPS team members rarely work on their own. They often need to persuade other people to take customer-centric actions. The only ways we have of getting others to take action are by what we say and what we write. We need to be good at both. In addition to formal training on how to make effective presentations, we suggest making the subject an occasional focus for team meetings.

  5. NPS Certified. Formal NPS training confers the skill set and perspectives critical to thoughtfully managing an effective program. We respectfully submit that the Net Promoter Masterclass course is the place to go.

This list covers understanding customer-related data, determining its financial impact, driving improvements and communicating change. We believe these skills are essential to the majority of CX work.

go beyond basic nps governance and accountability

A strong governance and accountability approach can help carry to your program from its beginning to more advanced operations and impact. Be sure your governance team understands that its remit includes continuing engagement with an evolving program over the long haul. Leverage your team to help navigate the challenges of building the data assets you’ll need to practically align your CX efforts to company strategy and outcomes. To get there, download our guide, take our comprehensive training course, or read about the future of NPS.

REPORT

The Complete Guide to NPS Basics and Beyond

TRAINING

Leading an Outcome- Oriented
CX Program

REPORT

The New NPS
Manifesto

REPORT

The Complete Guide to NPS Basics and Beyond

TRAINING

Leading an Outcome- Oriented
CX Program

REPORT

The New NPS Manifesto

ABOUT OCX COGNITION

OCX Cognition delivers the future of NPS. We ensure customer experience success by combining technology and data science with programmatic consulting. In our Insights section, we present a comprehensive and evolving collection of resources based on our research and expertise, collected for CX leaders committed to delivering business outcomes.

Collective Incentives Offer Better Results

For NPS Program Success, Craft a Clear Vision

NPS BASICS AND BEYOND
For NPS Program Success, Craft a Clear Vision
Why NPS Governance Matters

For NPS Program Success,
Craft a Clear Vision

key takeaway

Successful NPS programs rely on clear CX vision, mission, leadership and execution strategy. The “everybody is responsible for customer experience” message may sound good, but it is a recipe for failure.

Best Practice

Like all strategies, customer experience strategy is about resource allocation. Where are you going to concentrate your scarce resources to make a difference? What initiatives are you going to fund and staff that will give you a competitive advantage? If every business and function make these decisions independently, adopts its own measurement systems, trains its people in independent ways, the result is what business strategists call ‘a big mess’.

Think about military strategy. No president of any country at war ever declared ‘We are all in charge of our military strategy. Just go out there and win.’ That makes no sense whatsoever, and the same is true of CX strategy. You must explicitly state what you are trying to achieve, both internally and externally.

We live in a dynamic world. A single person must be in charge of your company’s strategy and governance. And it is critical that person is in touch with corporate leadership to ensure CX strategy is aligned with business strategy.

They need to drive common understanding and actions based on the following dimensions:

  • Customers: How have wants and needs been changing over time and how well do you and your competitors serve those expectations?
  • Partners: What do your distributors, resellers and implementation partners want from you and how well do you and your competitors meet those needs?
  • Competitors: How have your traditional competitors been improving customer experience? Are new competitors emerging who offer revolutionary experiences that will disrupt your market?
  • Industry dynamics: What changes in your industry will affect the experiences you and your competitors can offer and which of these changes really matter?
  • External factors: How are influence such as government regulation changes going to affect your customer experience strategy?
  • Internal realities: What is your ability to execute on any of the insights you gain from answering these questions?

These are the top-level questions that must be answered in a comprehensive CX strategy. To be effective, multiple answers and multiple strategies must not be allowed. This requires a strong CX governance structure with a single leader.

go beyond basic nps governance and accountability

A strong governance and accountability approach can help carry to your program from its beginning to more advanced operations and impact. Be sure your governance team understands that its remit includes continuing engagement with an evolving program over the long haul. Leverage your team to help navigate the challenges of building the data assets you’ll need to practically align your CX efforts to company strategy and outcomes. To get there, download our guide, take our comprehensive training course, or read about the future of NPS.

REPORT

The Complete Guide to NPS Basics and Beyond

TRAINING

Leading an Outcome- Oriented
CX Program

REPORT

The New NPS
Manifesto

REPORT

The Complete Guide to NPS Basics and Beyond

TRAINING

Leading an Outcome- Oriented
CX Program

REPORT

The New NPS Manifesto

ABOUT OCX COGNITION

OCX Cognition delivers the future of NPS. We ensure customer experience success by combining technology and data science with programmatic consulting. In our Insights section, we present a comprehensive and evolving collection of resources based on our research and expertise, collected for CX leaders committed to delivering business outcomes.

Collective Incentives Offer Better Results

Our Framework Helps You Build an Effective NPS Team

NPS BASICS AND BEYOND
Our Framework Helps You Build an Effective NPS Team
Effective NPS Team Structure

Our Framework Helps You
Build an Effective NPS Team

key takeaway

Clarity about the NPS organizational structure and reporting lines is more important than precisely what that structure is.

Best Practice

Before discussing reporting structures, let’s start with the functions we believe should be present in an excellent corporate NPS team. Here are some of the most important:

  • Data sourcing and analytics: Until recently this meant customer surveys, double-blind benchmark surveys, and developing the insights and recommendations from such data. That’s no longer enough. You’ll need to bring in financial and operational data, at the very least, both to prioritize improvements and to monitor progress.
  • Communication: All senior leaders, including those on the NPS team, need to be able to communication insights and priorities effectively both inside and outside the company.
  • Action management: The NPS team leader needs one or more trained project managers who will lead improvement work that crosses company businesses and functions.
  • Training: Designing and / or selecting, implementing and constantly improving customer experience training for all levels of the company ensures adoption of common language and methodologies.
  • Coordination of listening posts beyond VOC feedback: If your company does not already have one, we suggest setting up a customer complaints person or team. Start internally by giving employees the ability to let you know about customer complaints.

Reporting structures within the NPS team may be less important that the reporting lines of the team’s top leader. Ideally, the top NPS leader reports directly to the CEO, or at least to someone on the executive leadership team. The Chief of Staff, if one exists, can be a good reporting line, especially given that this role controls agendas and areas of focus. Alignment with sales also works well.

Dotted line or informal reporting relationships with other teams are also important. The NPS program team, supported by its executive sponsor, should educate functional leaders throughout the business, and build an influence-lead cross functional team to recommend CX improvements via their own reporting paths to the executive leadership team.

The diagram below summarizes a structure that we have seen work.

Example

Source: Net Promoter Masterclass, Program Leadership Toolkit

go beyond basic nps governance and accountability

A strong governance and accountability approach can help carry to your program from its beginning to more advanced operations and impact. Be sure your governance team understands that its remit includes continuing engagement with an evolving program over the long haul. Leverage your team to help navigate the challenges of building the data assets you’ll need to practically align your CX efforts to company strategy and outcomes. To get there, download our guide, take our comprehensive training course, or read about the future of NPS.

REPORT

The Complete Guide to NPS Basics and Beyond

TRAINING

Leading an Outcome- Oriented
CX Program

REPORT

The New NPS
Manifesto

REPORT

The Complete Guide to NPS Basics and Beyond

TRAINING

Leading an Outcome- Oriented
CX Program

REPORT

The New NPS Manifesto

ABOUT OCX COGNITION

OCX Cognition delivers the future of NPS. We ensure customer experience success by combining technology and data science with programmatic consulting. In our Insights section, we present a comprehensive and evolving collection of resources based on our research and expertise, collected for CX leaders committed to delivering business outcomes.