Beyond the Ultimate Question

Bob E. Hayes

Description

Business growth depends on more than asking a single question. Challenging the widely touted Net Promoter Score (NPS) claims, author Bob E. Hayes provides compelling evidence that, to grow their business, companies need to look beyond this simple question to efforts on improving the entire customer feedback program (CFP).
First, customer loyalty consists of three components, advocacy, purchasing, and retention, each providing unique and useful information regarding future business growth. By measuring these three components of customer loyalty, companies will be better able to manage their customer relationships to maximize growth through new and existing customers.
Second, because of the diverse business practices companies can employ with respect to their CFPs, there are hundreds of different ways a company can structure its particular program. Some companies have top executive support for their programs while others do not. Some companies integrate their customer feedback data into their daily business processes while others keep them separate. Some companies use customer feedback results as part of their employee incentive programs while other companies rely on more traditional incentive programs. Still some companies conduct in-depth customer research using their feedback data while others rely on basic reporting of their customer feedback data for their customer insight. But are there critical elements of a customer feedback program that are absolutely necessary for its success? Can a company exclude some elements from its program without adversely impacting its effectiveness? How important are certain components in increasing customer loyalty?
This book answers these questions. It is a direct result of the author’s scientific research and professional experience in the field of customer satisfaction and loyalty. This book represents the first scientific study that has tried to identify the best practices of customer feedback programs. Hayes formally collected information from many CFP professionals regarding how they structure their CFPs, and identified specific CFP practices that lead to higher levels of customer loyalty. Additionally, he worked first-hand with employees from Microsoft, Oracle, Harris Stratex Networks, Akamai, and American Express Business Travel in gathering insights and case studies to illustrate how to build a world class CFP. Learn why companies should look beyond the NPS as the ultimate question and learn how to design an effective CFP that will help improve the customer experience, increase customer loyalty, and, ultimately, drive business growth.
For those unfamiliar with CFPs, the appendices provide detail on methods used in the main body of the book: a discussion on methods of determining customer requirements (those elements of your business that are important to your customers), a complete discussion on how to write survey questions, and brief discussions on particular statistical analysis methods that can help you understand how customer feedback data are analyzed.

Sujets

• Business
• Qualité, hygiène, sécurité, environnement
• Vente
• Total Quality Management
• Gestion et management
• Economics
• Gestion des ventes

Informations

• Publié par: ASQ Quality Press
• Date de parution: 04 mai 2009
• Nombre de lectures: 0
• EAN13: 9780873893190
• Langue: English
• Poids de l'ouvrage: 1 Mo

Extrait

Beyond the Ultimate Question

Also avaîlable from ASQ Qualîty Press:

Measuring Customer Satisfaction and Loyalty: Survey Design, Use, and Statistical Analysis Methods, Third Edition Bob E. Hayes

Managing the Customer Experience: A Measurement-Based Approach Morrîs Wîlburn

Customer Satisfaction Research Management Derek Allen

Competing for Customers and Winning with Value: Breakthrough Strategies for Market Dominance R. Erîc Reîdenbach and Regînald W. Goeke

Analysis of Customer Satisfaction Data Derek Allen and Tannîru R. Rao

Six Sigma Marketing: From Cutting Costs to Growing Market Share R. Erîc Reîdenbach

ANSI/ISO/ASQ Q10002-2004: Quality management—Customer satisfaction—Guidelines for complaints handling in organizations ANSI/ISO/ASQ

The Certified Manager of Quality/Organizational Excellence Handbook, Third Edition Russell T. Westcott, edîtor

The Quality Toolbox, Second Edition Nancy R. Tague

Making Change Work: Practical Tools for Overcoming Human Resistance to Change Brîen Palmer

Innovation Generation: Creating an Innovation Process and an Innovative Culture Peter Merrîll

To request a complîmentary catalog of ASQ Qualîty Press publîcatîons, call 800-248-1946, or vîsît our Web sîte at www.asq.org/qualîty-press.

Beyond the Ultimate Question

A Systematic Approach to Improve Customer Loyalty

Bob E. Hayes

ASQ Qualîty Press Mîlwaukee, Wîsconsîn

AmerîcanSocîetyforQualîty,QualîtyPress,Mîlwaukee53203 © 2010 by Bob E. Hayes All rîghts reserved. Publîshed 2009 Prînted în the Unîted States of Amerîca 15 14 13 12 11 10 09 5 4 3 2 1 Library of Congress CataloginginPublication Data Hayes, Bob E., 1963–.  Beyond the ultîmate questîon : a systematîc approach to împrove customer loyalty / Bob E. Hayes.  p. cm.  Includes bîblîographîcal references and îndex.  ISBN 978-0-87389-772-3 (alk. paper)  1. Customer loyalty. 2. Consumer satîsfactîon. 3. Customer servîces. I. Tîtle.

HF5415.525.H39 2009 658.8’343—dc22

2009023442

Nopartofthîsbookmaybereproducedînanyformorbyanymeans,electronîc, mechanîcal, photocopyîng, recordîng, or otherwîse, wîthout the prîor wrîtten permîssîon of the publîsher. Publîsher: Wîllîam A. Tony Acquîsîtîons Edîtor: Matt Meînholz Project Edîtor: Paul O’Mara Productîon Admînîstrator: Randall Benson ASQ Mîssîon: The Amerîcan Socîety for Qualîty advances îndîvîdual, organîza- tîonal, and communîty excellence worldwîde through learnîng, qualîty împrove- ment, and knowledge exchange.

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Prînted on acîd-free paper

As always, this book is dedicated to my daughter, Marissa.

You have grown into a great person with decent values and a sense of fun that is matched only by your sense of responsibility. You bring me joy beyond what words can express. You will probably never know how much your loving, supportive words mean to me, but I hope you know that I will always be here for you.

Cont

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List of Figures and Tables . . . . . . . . . . . . . . . . . . . . . . . . Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART I

Chapter 1

INTRODUCTION TO CUSTOMER FEEDBACK PROGRAMS. . . . . . . . . .

Beyond the Ultimate Question, and Measurement and Meaning of Customer Loyalty. . . . . . . . . . . . . . . . . . The Myth about the NPS as the Ultîmate Questîon . . . . . . . . . . . . . . . . . . . . . . . Potentîal Loss of Revenue When Usîng the NPS: An Example . . . . . . . . . . . . Objectîve Measures of Customer Loyalty and Fînancîal Growth. . . . . . . . . . . . . Customer Loyalty Surveys. . . . . . . . . . . . Measurement of Customer Loyalty . . . . . Objectîve vs. Subjectîve Measures of Loyalty and Measurement Error . . . . What Loyalty Questîons Are Measurîng: A Factor Analytîc Vîew . . . . . . . . . . . NPS vs. Satîsfactîon vs. Purchase Same. . . . . . . . . . . . . . . . . . . . . . . . . .

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viii Contents

Chapter 2

Sîngle-Item Measures or Aggregated Metrîcs . . . . . . . . . . . . . . . . . . . . . . . . Customer Loyalty 2.0 and Beyond the Ultîmate Questîon . . . . . . . . . . . . . . . Customer Loyalty Management. . . . . . . . Development of the Advocacy, Purchasîng, and Retentîon Loyalty Indîces . . . . . . Advocacy, Purchasîng, and Retentîon Loyalty . . . . . . . . . . . . . . . . . . . . . . . . Descrîptîve Statîstîcs, Correlatîons, and Relîabîlîtîes of Loyalty Indîces . . . . . Impact of Customer Experîence on Customer Loyalty Dîffers across Components of Customer Loyalty . . . Customer Loyalty and Amount of Spend . . . . . . . . . . . . . . . . . . . . . . . . . Rankîng Companîes on Loyalty. . . . . . . . ALI, PLI, and RLI Predîct Busîness Growth . . . . . . . . . . . . . . . . . . . . . . . . Specîfîcîty vs. Generalîty of Measurement . . . . . . . . . . . . . . . . . . . Hayes Loyalty Grîd . . . . . . . . . . . . . . . . . Summary . . . . . . . . . . . . . . . . . . . . . . . . .

The Structure of Customer Feedback Programs. . . . . . . . . . . . . . . . . . . . . . . . . . Elements of CFPs. . . . . . . . . . . . . . . . . . . Model of CFPs . . . . . . . . . . . . . . . . . . . . . Strategy/Governance . . . . . . . . . . . . . . . . Integrated Busîness Processes . . . . . . . . . Method . . . . . . . . . . . . . . . . . . . . . . . . . . . Reportîng . . . . . . . . . . . . . . . . . . . . . . . . . Research . . . . . . . . . . . . . . . . . . . . . . . . . . Summary . . . . . . . . . . . . . . . . . . . . . . . . .

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43 43 43 45 49 50 51 52 56

Chapter 3

PART II

Chapter 4

Chapter 5

Contents

Customer Feedback Programs and Best Practices Study. . . . . . . . . . . . . . . . Best Practîces . . . . . . . . . . . . . . . . . . . . . . Best Practîces Survey. . . . . . . . . . . . . . . . Survey Results . . . . . . . . . . . . . . . . . . . . . Typîcal CFPs . . . . . . . . . . . . . . . . . . . . . . Identîfyîng CFP Best Practîces . . . . . . . .

BEST PRACTICES OF CUSTOMER FEEDBACK PROGRAMS— MANAGEMENT PROCESSES. . . . . .

Strategy and Corporate Governance. . . . . . . . . . . . . . . . . . . . . . . Adoptîon Rates for Strategy/Governance- Related Busîness Practîces . . . . . . . . Strategy/Governance-Related CFP Busîness Practîces that Impact Customer Loyalty and Satîsfactîon wîth the CFP . . . . . . . . . . . . . . . . . . . Strategy and Governance Drîve a Customer-Centrîc Culture . . . . . . . . . Buîldîng a Customer-Centrîc Culture: An Example . . . . . . . . . . . . . . . . . . . . Incentîve Programs . . . . . . . . . . . . . . . . . Customer Loyalty and Goal Settîng. . . . . Example of Incentîve Compensatîon Program for Professîonal Technîcal Support . . . . . . . . . . . . . . . Summary . . . . . . . . . . . . . . . . . . . . . . . . .

Business Process Integration. . . . . . . . Adoptîon Rates for Process-Related Busîness Practîces . . . . . . . . . . . . . . .

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