Measuring customer loyalty and driving customer focused improvement

  • Now is the time to ask – “What is the most significant value add we provide to our customers?” Is it a set of product features, availability, function or is it a service you offer?
  • Where do you stand in relation to your competitors – are you leaner, nimbler and the most responsive to changing customer needs?
  • How do you measure your customers’ loyalty and what does that mean?
    • For “Main Street”: What is the economic power of high-quality business relationships?
    • For Government: How does an agency’s reputation with the citizens it serves affect the everyday operations of that agency?
  • We will help you to thoughtfully engage with your customers to determine your value add and develop metrics which measure customer loyalty.
    • Asking for input requires us to respond quickly – we will work together using a Kaizen approach to implement quick wins and develop a longer-term plan of attack.
Beauchamp Consulting
Beauchamp Consulting
  • On a scale from 1 to 10 (with 1 being the least likely to recommend and 10 being “I would recommend with confidence and enthusiasm!), How likely is it that you would recommend us to a friend or colleague?”
  • Why do you rate us this way?
  • What would it take for us to earn a 10?
  • Net Promoter Score – start with this tool to ask your customers to provide their willingness to recommend your products/services. Their responses provide a numeric rating representing the % of promoters vs detractors. The higher the % of promoters, the higher your net promoter score.
    It’s important to have a significant statistical sample which is representative of your customer base and to include those customers who represent your strategic market direction. If done in a way to allow easy input and follow-up, the verbatim comments will enable you to prioritize efforts which build customer loyalty. You can track this numeric rating over time to show progress.
  • Voice of the Customer Research Tools – Surveys, focus groups, interviews, listening posts, customer observation and competitive comparisons (from the customer’s perspective) are helpful to document your customers’ voice regarding your value add – current and potential.
  • Critical to Quality (CTQ) Matrix or Tree – Once you document the customers’ perception of your value add, this tool can be used to select the most important critical to quality characteristics (CTQ’s) and the processes which affect them. It lays the groundwork for project and Key Performance Indicator (KPI) selection.
  • Quality Function Deployment (QFD) – If you are launching an important new product or process design effort, the use of the quality function deployment tool will facilitate a dialogue between your and your customers’ organizations. The focus is on understand detailed customer requirements leading to functional, feature and process requirements from your new design.
  • Define, Measure, Analyze, Improve, Control Approach (DMAIC) – for teams to effectively attack the opportunity, they must be taught a methodology to improve. Depending upon complexity, teams can use a cycle of Plan, do, check act, (PDCA) or the DMAIC (Lean Six Sigma) project-based approach. Many customers who have leaders trained in continuous improvement techniques have a very positive response when asked to join a supplier/customer effort to improve quality.
Beauchamp Consulting

Problem: A manufacturing company of consumer products was on a rocky road to recovery with a key customer who purchased 70% of the capacity for two plants located on the east & west US coasts. During year one of the relationship, the manufacturing company was unable to supply product to meet the entire customer demand due to slow and ineffective manufacturing processes, equipment shut-downs and product quality issues. A team was established to include both plants and ensure a standard, consistent response for the customer during year 2:

  • Developed effective sales & operational planning process to work closely with customer on forecast vs actual demand
  • Standardized processes to improve flow of material and to ensure training of largely temporary workforce could be done effectively to ramp operators up to speed quickly
  • Reviewed root causes for defect and addressed with improved supplied quality, material handling and operator involvement to reduce defects.
  • Conducted risk assessment and performed risk burn down actions to minimize risk of interruption in supply

Results: During year two,

  • 1 Customer asked company to manage inventory and provide additional value adding service of warehousing capability
  • 2 All required product was shipped on time and in full over the 6 month ramp to labor day sale supply period
  • 3 Sales increased by 30% over previous year
  • 4 Customer selected manufacturing company as primary partner for nationwide supply.

Problem: A national wireless telecomm service provider sought to improve its service provided by its national call center for Business to Business (B2B) customers. They utilized a net promoter score survey to obtain feedback from a large percentage of their B2B customers and used this feedback to drive noticeable improvement.

Beauchamp Consulting
  • One on one follow up conducted with every potential survey respondent to ensure >60% reply rate.
  • Analysis showed consistent themes regarding Pro’s and Con’s of service provided
  • The call center leadership team organized an immediate response targeting each specific customer with a rapid action plan to improve
  • The team applied a lean six sigma approach to reduce the amount of time it took to respond to customer inquiries (cycle time to respond). They piloted and then successfully implemented a new model for routing customer requests and measuring time to respond.

Results
The wireless provider’s customer service center team was able to reduce cycle time from several days on average to several hours, a reduction of 80%, responding to the number one survey concern.

Problem:One of a National Telecomm Service Provider’s top 5 B2B customers was expressing high dissatisfaction with their service. Specifically, there were problems with the implementation of a new pricing contract which had resulted in numerous cases of incorrect prices on services provided. The customer threatened to move the service to a competitor.

Beauchamp Consulting
  • A cross-functional project team was established to include team members responsible for ordering equipment, servicing the account and account relationship management.
  • Team established a scorecard reflecting pricing accuracy and timeliness of response. The scorecard was used monthly with the customer to review results, commit to action and resolve concerns quickly.
  • The project team used process mapping, root cause analysis and process redesign to address issues generating pricing discrepancies.

Results
This team changed the customer’s Net Promoter Score Rating from a 1 (the worst possible score) to a 10 (the best possible score), kept the business and continued to launch new efforts to drive defect reduction. The scorecard was used on a monthly basis to enhance communication between the leadership teams of both the wireless provider and their B2B customer.