Measuring What Matters: Our Net Promoter Program

1
Measuring What Matters Our Net Promoter Program
2
Agenda

• Improving Customer Loyalty Using Net Promoter
  Scores
• Atlantic Broadband Net Promoter Program Overview
  Results
• Whats Next
• Q A

3
(No Transcript)
4
Why should we care about loyalty?

• Loyal customers
• Repurchase, or subscribe longer
• Buy additional products/services
• Provide referrals
• Provide constructive feedback

5
Enterprise Rent-A-Cars Perspective

• The only way to grow is to treat customers so
  well they come back for more, and tell their
  friends about us. Thats how wed all like to be
  treated as customers.
• Golden Rule behavior is the basis for loyalty.
  And loyalty is the key to profitable growth.
• Andy Taylor,
• CEO Enterprise Rent A Car

6
Fostering Loyalty is Hard

• Easier to generate bad profits than good
  profits
• Easier to buy growth, but only for the short
  term
• Systems focused on financial performance, not
  quality of customer relationships
• Ultimate problem
• Loyalty is hard to define and even harder to
  measure and manage

7
Bad Profits Produce Detractors
8
Good Profits Lead To Loyalty

• Vanguard (mutual funds) cut prices by 1/3 for its
  largest customers and Vanguards growth
  skyrocketed
• Amazon.com gives free shipping for big orders
  (50 or more)
• Southwest Air doesnt charge change fees, but
  provides a credit that can be used over 12 months
• Intuit simplified its rebate process and
  increased market share

9
What Is The Ultimate Question?
10
Using The Ultimate Question To Calculate A Net
Promoter Score (NPS)
How Likely Would You Be To Recommend Us To A
Friend Or Colleague?
11
NPS Leaders Grow at 2.5X Their Industry Average
12
NPS Scores For Loyalty Leaders
13
Cable TV Satellite Provider Scores
Source SatMetrix, Q4 2007 Telecommunications
NPS Report
14
How Do We Improve?

• Begin to measure and report NPS regularly
• Identify the key customer segments that are most
  important and profitable
• These become our core customers
• Tailor operations and product as necessary to
  improve experience for core customers
• Eliminate sources of bad profits
• Implement, measure, refineImplement, measure,
  refine
• Requires ownership from the field support from
  corporate

15
Agenda

• Improving Customer Loyalty Using The Ultimate
  Question and Net Promoter Scores
• Atlantic Broadband Net Promoter Program Overview
  Results
• Whats Next
• Q A

16
Atlantic Broadband Net Promoter Score Program
Timeline

• Early 2006 Initial quarterly email surveys to
  phone customers
• Fall 2006 Net Promoter introduced as a 2007
  initiative _at_ annual Senior Managers Meeting
• 1st Qtr 2007 SkyCreek automated calling pilot
  program launched in PA region
• 2nd Half 2007 SkyCreek program rolled out
  company-wide
• 1st Half 2008 Reporting and VIP Program
  implementation

17
Service Interaction Monitoring Process
Day 1
Day 2
Day 3
Day 4
Install or Service Call Completed
Followup Service Calls
In Home Service
Sky Creek Automated Calling
Customer Calls Made 4 Contact Attempts
Uniontown Save Team
18
Survey questions

• How satisfied were you with the quality of
  service the customer service agent provided you
  when calling?
• How satisfied were you with the quality of
  service the technician provided?
• How satisfied are you with the current service
  you are receiving from Atlantic Broadband?
• How likely would you be to recommend Atlantic
  Broadband to a friend or family member?
• May we contact you for any score below a 3?

19
Our Grading Scale

• 5 Promoters
• 4 Neutral
• 3
• 2 Detractors
• 1

Promoters - Detractors Net Promoter Score
20
Typical Feedback Funnel
5500 Service Interactions
40 Response Rate
2200 Feedback Points
.75/Call 1500
20-30 Dissatisfied Request Followup
500 Followup Requests
50 Contact Rate
250 Resolution Discussions
5/Call 1250
15 Require Service Call
50/truck roll 2000
40 Truck Rolls
21
NPS Performance Vs. Basic Churn
NPS Up 50 Churn Down 30
22
Differences By Type Of Transaction
NPS Scores By Transaction Type
Central PA
Overall
Install
Service
Delmar
23
Sensitivity To Customer Disruption
Delmar Region Likelihood to Recommend NPS Scores
August 2007
DVR Upgrade
DCT Upgrade
24
NPS Scores By Spending Level
Likelihood To Recommend Q3 2007
25
Key Findings To Date

• The data are both sensitive to actual customer
  experience and timely
• Improved NPS performance appears to be correlated
  with reduced churn
• Customers who have a service issue are 2-3x more
  likely to be a detractor
• Our highest spending customers have the lowest
  NPS exactly the opposite of what it should be
• Our highest scores come from customers who spend
  between just 25 - 75/month

26
Agenda

• Improving Customer Loyalty Using The Ultimate
  Question and Net Promoter Scores
• Atlantic Broadband Net Promoter Program Overview
  Results
• Whats Next
• Q A

27
The VIP Program

• What is it?
• A loyalty effort that targets all customers in
  good standing that have video, internet and phone
  services.
• How does a customer become a member of the VIP
  program?
• Existing triple play customers with no collection
  history will automatically be enrolled.
• New customers who subscribe to all three services
  will be enrolled 30 days after installation.

28
What does a VIP Get?

• A VIP customer gets Priority Service
• Priority routing to the head of the call queue
  (tier 1 and tier 2)
• Priority routing for same day service and
  installation appointments if calling before 3pm.
  (Next day appointments if after 3pm)
• We do not miss these appointments!
• VIP customers who call hear
• Thank you for being an Atlantic Broadband VIP
  customer. Your call is being priority routed to
  the next available customer service
  representative.
• Additional potential benefits focused around
  priority
• Prioritizing HSI traffic for VIP customers in
  times of peak usage
• First access to day and date titles on VOD
• Others TBD

29
VIP Activity 1st 60 Days

• Less than 10 of total call volume is VIP related
• Priority routing to Tier 2 is very much
  appreciated
• Averaging 40 priority service calls per week

30
NPS Measurement and Tracking Evolution

• Expand to measure relationship NPS in addition
  to transactional NPS
• Drive more granular response tracking
• Track customer descriptors to segment and trend
  better
• Track NPS scores down to the individual level
• Focus on back office functions to optimize
  visibility and management
• Integrating daily/weekly/monthly data into our
  standard reports
• Simple trouble ticketing system to track and
  manage NPS driven follow-up tasks, actions and
  reasons

31
Starting Your Own Program 3 Keys

• Start simple and evolve
• Think about who your best customers are and how
  to improve value for them
• You MUST understand and follow-up on detractor
  problems or youre wasting your time

32
(No Transcript)
33
(No Transcript)
34
Concept Overview Summary

• Increasing customer loyalty leads to growth
• Net Promoter Scores are the single best measure
  of loyalty and highly correlated with growth
• Start