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"...keeping
you great" Ten Minutes with the Growth Guy
HEADLINES: (Thursdays, regular Insight; Tuesdays
Growth Summit highlights)
Dwight Cooper raises Net Promoter Score
(NPS) 12 points -- and Cooper figures
it added almost $4 million in net annualized revenue
-- details follow including a link to how to compute
your NPS. Cooper is co-founder and CEO of Jacksonville,
FL-based PPR, one of the world's leading nurse
staffing firms.
The Ultimate Question -- NPS is
the key Customer Advocacy measure highlighted in
Fred Reichheld's latest book "The Ultimate
Question: Driving Good Profits and True Growth." Reichheld's
previous best-seller is "The Loyalty Effect:
The Hidden Force Behind Growth, Profits, and Lasting
Value." Reichheld is keynoting our FORTUNE
Small Business' "Growth Summit" October
23 -- 24 in Las Vegas. Cooper will also share his
real world application of NPS to his growth firm.
The very best score 75 -- notes
Cooper "thirteen months ago we benchmarked
our NPS. We are very good at customer service and
it has been a big reason for our growth over the
years so we scored a 60. Great number. I felt we
could do better. Reichheld says the very best score
75 or more. We set out to achieve a NPS score of
70 and gave ourselves a year to achieve the goal.
Moving 10 percentage points in a year would be
extremely difficult. It was our theme for the year."
PPR scores a 72 -- a few weeks
ago Cooper conducted a new round of NPS surveys
and the results were exciting. They scored a 72! "How
has it helped us?" explains Cooper. "We
had a 6 basis point increase in nurse retention.
This results in an annualized increase in revenue
of $3.75mm."
How PPR did it? -- "Let
me share with you the things we did to impact our
score" noted Cooper in a recent email update:
* We tied compensation to our NPS score. Not
just the compensation of our sales people but everyone.
BTW, if you do this it is important to build in protection
against your sales force trying to influence NPS scores
by discussing the surveys with their nurses. For us
it was simple. The sales people were not permitted
to discuss it at all under threat of termination.
* We had a compensation piece for internal customer
service (how they treat each other) and external
(NPS score). My view is that they could not offer world
class service consistently unless they were offering
that service every day to each other.
* We also:
- Evaluated each employee on customer service quarterly
- Did 8 hours of group customer service training
- Did lots of call coaching on service
- But the best thing we did is going to remain secret
to your readers but I will share with you (or Fred)
the next time we are together (OK, now we have something
to ask Dwight about at the Growth Summit!!!)
How to calculate NPS -- here's a link to a quick guide on how
to measure your company's Net Promoter Score (NPS), Bain, the leading consulting
firm for which Reichheld works, suggests that companies with the leading NPS
in an industry enjoy growth that is typically 2.5 times the average growth
rate of the competition.
Read the equivalent of 12 leading business books -- if you
don't have time right now to learn or think about all of this, register now
for this mini "Think Week" for your team (Bill Gates takes a couple
weeks each year to focus and learn) -- "Growth Summit" October 23
-- 24, Las Vegas -- here's
a link for more details
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